Jim Sensenbrenner
Press Release

Congressman Sensenbrenner Introduces Bill to Save Family-Owned Businesses From Death Tax Increases

The IRS is proposing new and harmful regulations that would hurt family-owned businesses.

By - Sep 15th, 2016 12:13 pm

WASHINGTON, D.C. – Today, Congressman Jim Sensenbrenner introduced H.R. 6042, legislation that would stop the Internal Revenue Service (IRS) from placing unnecessary and burdensome estate tax regulations on family-owned businesses.

The IRS is proposing new and harmful regulations that would hurt family-owned businesses. Currently, valuation discounts exist for family business owners to make the transition from the owner to an heir after death more manageable. The IRS-proposed regulations would eliminate these valuation discounts, forcing many family-owned businesses to sell.

These burdensome regulations would be particularly damaging to family-owned farms, many of which often have large assets due to land holdings, but maintain relatively modest incomes.

Congressman Sensenbrenner: “The IRS should not be in the business of making it difficult for family-owned businesses to keep their doors open, especially during a difficult time such as the loss of a loved one. At a time when the economic outlook is precarious and full of uncertainty, it’s critical we do everything we can to keep our nation’s small and family-owned businesses well and flourishing.”

Background:

  • Currently, there are valuation discounts available for family business owners for purposes of estate and gift taxes, due to the lack of an identifiable market for the business.
  • When a family tries to pass a family-held business on to the next generation, there are valuation discounts available to protect a business’s assets from undue taxation, including:
    • Lack of Control Discount: Heirs often receive portions of family-held businesses that are minority ownership stakes. These minority owners do not have control over management decisions, making the minority interest less valuable to a potential buyer.
  • Lack of Marketability Discount: Most family-held businesses are not easily convertible to cash. This is a barrier to easy liquidation that, in the case of a family-held business, makes it less valuable to a potential buyer.
  • Currently, the fair market value of an interest in a family-held business is based on what a willing seller would be able to receive from a willing buyer. These discounts reflect reality by properly determining the realistic value of a family business in the open market.

Press Releases by Jim Sensenbrenner

Jim Sensenbrenner

Congressman Sensenbrenner Introduces Bill to Stop the Sexual Exploitation of Children

There are also an estimated 100,000 fugitive sex offenders across the country who are unregistered or in violation of registry requirements.

Jim Sensenbrenner

Congressman Sensenbrenner Named ‘Guardian of Small Business’ by NFIB

“Small businesses are a big deal, and I’m proud to be their constant ally in Congress.”

Jim Sensenbrenner

Congressman Sensenbrenner Introduces Childcare Assistance Bill to Help American Families and Businesses

“The cost of reliable, quality childcare has risen dramatically over the years. Changes to the Dependent Care Assistance Program are necessary to give our hardworking families a hand up and to ensure our businesses have a focused, productive workforce.”

Jim Sensenbrenner

State of Economy and Direction of the Country Among Biggest Concerns Listed in the 2016 Fifth District Survey Results

The annual district survey is another tool Congressman Sensenbrenner uses to ensure he is best serving those he represents.

Jim Sensenbrenner

Sensenbrenner Joins Wisconsin Delegation in Standing up for Patient Access

Wisconsin delegation requests increased patient access to oropharyngeal strengthening therapy.

Jim Sensenbrenner

Sensenbrenner Commends Justice Department on Music Licensing Efforts

"We commend the Department’s efforts to guarantee the fair and efficient licensing of public performance rights for musical works.'

See More Releases

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>