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.
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.”
- 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
“Congressman Laird committed his life to public service and his fellow Americans.”
“Speaker Ryan is a true conservative leader who exemplifies what it means to serve others.”
Today, Congressman Jim Sensenbrenner released the following statement congratulating Republican National Committee Chairman Reince Priebus on his appointment as President-elect Donald J. Trump’s chief of staff
Congressman Sensenbrenner Calls on Comey, FBI to Conduct a More Vigilant Review of Clinton Emails This Time AroundOct 29th, 2016 by Jim Sensenbrenner
“I don’t think your answers are satisfactory at all, Mr. Comey.”
“These American heroes give us their best; we must do the same for them.”
Congressman Sensenbrenner Holds EPA Accountable for Harmful Regulations that Hurt American Fuel ConsumersSep 27th, 2016 by Jim Sensenbrenner
“Taxpayers should not be held hostage at the pump by unelected, unaccountable bureaucrats in Washington.”