Family Businesses, Jobs Seen Thwarted by Proposed IRS Rules

Overview


Richard Dees criticized a provision in new IRS rules to limit valuation discounts for family businesses. Current rules provide “an incentive for people to stay in the business; not to bail out because they can’t get the full value of the underlying asset,” Mr. Dees said. But the new rules, he continued, provide an “incentive is to run with the cash … and not have to worry about the risks that go on with operating the business.”