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NCBA Applauds Treasury Decision to Withdraw Section 2704 Valuation Regulation

09 October 2017

US - Last week (4 October), the US Treasury department announced its intention to withdraw proposed regulations under Section 2704 of the Internal Revenue Code that were introduced in August last year. This step has been made in an attempt to relieve owners of interests in family partnerships and LLCs at least temporarily.

Upon the announcement made by the Department of the Treasury, National Cattlemen’s Beef Association (NCBA) President-elect Kevin Kester issued a statement.

Mr Kester said: "On behalf of NCBA and our nation’s beef producers, I’d like to thank the US Treasury and the IRS for their decision today to entirely withdraw the proposed Section 2704 estate tax valuation regulations.

"Livestock producers have used legitimate valuation discounts for more than two decades as a means of maintaining ownership of the family business from one generation to the next.

"These regulations threatened to upend succession plans, halt any potential expansion and growth, and would have required a majority of livestock operations to liquidate assets in order to simply survive from one generation to the next.

"We’re grateful the Treasury has made good on their commitment to reduce complexity and lessen the burden of tax regulations, particularly for family farmers and ranchers."

TheCattleSite News Desk

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