Overview
Carlyn McCaffrey said the IRS can only disregard restrictions on liquidation rights for family-controlled businesses, as its new regulations propose, if these restrictions don’t affect the market value of the interests being transferred. The new regulations “basically assume a 10 percent interest holder has the right to liquidate the company or to withdraw 10 percent of the value of the company, and that’s simply not true as a matter of corporate or limited liability company law,” Ms. McCaffrey said.
