On Oct 3, 2017, the U.S. Department of Treasury released its second report in response to Executive Order 13789 to reduce burdensome tax regulations. Treasury Secretary Steven Mnuchin is recommending significant action on two of the rules that TSCPA’s Federal Tax Policy Committee listed in its letter dated Aug. 2, 2017.
Treasury will withdraw proposed regulations under Section 2704 that would negatively impact family-owned and operated businesses by limiting valuation discounts that may be applicable when businesses are transferred from one generation to the next.
Treasury also would revoke the final and temporary Section 385 documentation regulations and replace them with streamlined documentation rules. The effective date would be set to allow time for public comments and for businesses to be prepared to comply with the new rules. The streamlined documentation rules are expected to address ordinary trade payables and the reasonable expectation of ability to pay indebtedness. Treasury has also identified other regulations to modify or appeal.
Read the Treasury Report.
TSCPA Federal Tax Policy Committee letter on Identifying and Reducing Tax Regulatory Burdens