The American Society of Appraisers has issued some talking points and a letter template to use to help communicate opposition to the proposed IRS Section 2704 regulations, particularly to members of Congress. The controversial regs have sparked a firestorm of protest from valuation experts, attorneys, wealth planners, and family business owners (most recent BVWire coverage is here).
Comments matter: The ASA’s talking points are designed to be used when speaking with members of Congress, especially those on the Senate Finance Committee or House Ways & Means, which have oversight of the IRS. To access the talking points document, click here. The letter template raises the most critical points against the proposed regulations, and it’s available if you click here. In a news release, the ASA says: “Feel free to augment any arguments with your own experience as it relates to valuing these kinds of interests and the businesses typically involved.”
So far, the IRS has received over 80 written comments (due November 2), many from family business owners. This is important because it should not just be the valuation community or wealth planners making comments. Observers agree that the impact to family businesses could be devastating, forcing them to take on debt or delay capital investments or hiring in order to pay the increased tax bill.
Support is growing in Congress to quash the proposed regs, but this momentum needs to gain more steam. In the House, Republicans have introduced two bills, H.R. 6042 and H.R. 6100, to nullify the proposed regs. In the Senate, members of the Senate Finance Committee (which has oversight authority over the Treasury and IRS) are among those who have sent a letter to Treasury Secretary Jacob Lew requesting that the proposed regs be withdrawn. There is also a Senate companion bill (S. 3436).
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