After more than a year of speculation and rumors, on August 4, the Internal Revenue Service (“IRS”) issued proposed regulations under Internal Revenue Code §2704 (the “Proposed Regs”). Clearly, the goal of the Proposed Regs is to limit (or eliminate outright) the application of discounts for lack of control and lack of marketability when valuing interests in family controlled entities for gift, estate and generation-skipping tax purposes.
As a business valuation and advisory firm, MPI regularly observes and reports on financial trends and outlooks. Our most recent Economic Update is a review of the first half of the year for the economy, which saw growth in some sectors and losses in others. However, after a sluggish start to 2015, real GDP growth accelerated in Q2 and is expected to continue at a steady pace for the next several quarters.