We have blogged on previously occasions about the Obama-era proposed regulations to tighten practices in valuing family-controlled businesses. Much of the last 14 months have been spent in public scrutiny and commentary of these proposed rules.
Our most recent entry was about presidential Executive Order 13789 (April 21, 2017), the United States Treasury Department that put the proposed §2704 regulations in its crosshairs, in the name of de-regulating business. In its 60-day interim report, Treasury identified including §2704 among eight “Regulations identified for burden reduction”. We wondered then how much the president, his cabinet, West Wing advisors – and all of their heirs -- stand to gain personally, by “unburdening” the American people in this way.
It appears that we now know the answer – or at least infer it: plenty!
On October 2, 2017, Treasury Secretary Mnuchin formally recommended withdrawing the §2704 proposals, as burdensome, unworkable and beyond IRS legal authority. We wish that the current government were not so rife with conflicts that self-dealing would not be our first thought, but it is, so it is. That, and their congenital need to trash anything that has the name “Obama” associated with it.
Politics and skepticism aside, many in the valuation community wish the proposed rules good riddance, too.