By: Amanda Wilson
Last summer, we discussed the IRS’s issuance of new Proposed Regulations under Section 2704 of the Internal Revenue Code, which regulations would severely impact discounts on gifts made to family members. (Our prior discussion can be found here.) Earlier this year, the Trump Administration issued an executive order instructing the Treasury Department to review all significant tax regulations issued after December 31, 2015 and identify any regulations that impose an undue burden on taxpayers. The Treasury Department and IRS have completed this review, and have identified eight burdensome regulations that should be reformed. The good news for taxpayers is that the Proposed Regulations under Section 2704 are on this list.
The next step is for the Treasury Department and IRS to recommend their proposed reform for these regulations, which could range from modification to outright repeal. We will have to wait and see what they propose, but for now, the fact that the Treasury Department and IRS targeted these Section 2704 regulations for reform is a big step in the right direction.
We will keep you updated as this process moves forward.