The IRS recently issued proposed regulations under Section 2704 of the Internal Revenue Code dealing with the use of valuation discounts when transferring (during life or at death) interests in family limited partnerships (“FLPs”) and similar entities. FLPs and similar entities are frequently used in gift and estate tax planning to facilitate the transfer of minority or nonvoting interests to family members at values that are discounted from the pro rata value of the underlying assets. The proposed regulations, if finalized in their current form, would greatly limit the use of such valuation discounts. We have prepared a client alert that discusses the new proposed regulations and their implications for taxpayers. If you have any questions about the new proposed regulations and how they may affect your plans, please contact the T&K tax attorney with whom you regularly work or any of the T&K tax attorneys listed in the client alert.