NRMCA e-news
Facebook Twitter YouTube LinkedIn
 

NRMCA Submits Comments to IRS Opposing Estate Tax Increases

Print this Article | Send to Colleague

NRMCA has submitted comments opposing the Internal Revenue Service notice of proposed rulemaking (NPRM) on changes to valuation discounts that would make it more difficult for family-owned businesses, like many in the ready mixed concrete industry, to transfer assets to future generations. Specifically, the NPRM would limit the use of valuation discounts for family-owned/operated businesses. The IRS’s proposal will disproportionately and unfairly impact our organization’s family-owned/operated businesses. The modifications will eliminate a valuable, as well as significant, estate planning tool that allows businesses the ability to apply proper valuation discounts for estate, gift and generation skipping taxes. This practice permits families to continue their businesses by transferring interests during their lifetime to children instead of waiting until one’s death, which is important for planning purposes and for the long-term viability of family-owned/operated businesses.

The proposed rules are a backdoor effort to increase estate taxes by the IRS and prevents family-owned/operated businesses from reinvesting capital assets into their companies.  The NPRM is a fundamental misunderstanding of true economic reality. Valuation discounts promote the flow of businesses to younger generations by maintaining the ability to transfer interests during life to children. These discounts allow families to keep their businesses open which promotes economic vitality through job creation.

House Ways and Means Chairman Brady (R-TX) is leading a letter from Republican leaders to Treasury Secretary Jack Lew opposing the proposed rule. House and Senate Republican leaders are also considering legislation to be included as part of the year-end spending package to block Internal Revenue Service estate tax regulations on valuation discounts. Rep. Warren Davidson (R-OH) has also introduced legislation (HR 6100) to block funding for implementation of this rule should it be promulgated by the IRS. Senator Marco Rubio (R-FL) has introduced a companion bill (S 3436) when Congress returns after the election.

NRMCA supports legislation blocking the IRS from taking away a valuable estate planning tool from ready mixed concrete business owners. Please contact your Members of Congress and tell them to cosponsor legislation preventing IRS from implementing this rule.
 
Please click here to submit comments on your company letterhead opposing these rules. To contact your member of Congress, click here. For more information, please contact NRMCA’s Kerri Leininger at kleininger@nrmca.org.
 

Back to NRMCA e-news

Share on Facebook Share on Twitter Share on LinkedIn