The U.S. Treasury Department has released a report with recommendations to mitigate the burden of eight tax regulations identified for review under Executive Order 13789. The report recommends withdrawing proposed regulations on valuation discounts regulations for family-owned businesses (IRC sec.2704), as well as one on the definition of a political subdivision for purposes of tax-exempt bonds (IRC sec. 103).
The valuation discount regulations would have increased estate taxes owned by family-owned businesses. ICSC was one of many groups pushing for the rule to be withdrawn. ICSC also requested that the political subdivision rules be more narrowly tailored to prevent barriers to local government efforts to develop infrastructure and make community improvements.
The report also recommended that the regulation on disguised sales (IRC sec. 707) be revoked and the prior regulation reinstated. However, the rules on bottom-dollar guarantees (IRC sec. 752) will be retained while the issue receives further study.