New prop. regs. on restrictions on liquidation of interests in business entities.

• Author: Josephs, Stuart R.
• Position: FED TAX UPDATE - Brief article

Prop. regs. under IRC sees. 2701 and 2704 (NPRM REG-16311302, Aug.2) concern the treatment of certain lapsing rights and restrictions on liquidations in determining the value of transferred interests. These proposals seek to address avoiding Sec. 2704's application and reflect significant new developments. They generally would be effective on and after the date the final...