The American Farm Bureau Federation is supporting legislation that would block a recent IRS proposal regarding estate taxes. The IRS proposal, if approved, would mean farmers and ranchers would have to pay more in estate taxes. Lawmakers in both chambers of Congress have introduced a bill to block the IRS proposal, and AFBF tax specialist Pat Wolff explains what the IRS is trying to do.
“The IRS is proposing to take away an estate planning tool that allows farmers and ranchers to reduce the value of their business assets for estate tax purposes. This means that farmers and ranchers could end up paying more estate taxes when a family member dies.”
Most farms and ranches are owned by a family, but Wolff says high estate taxes make transfer of ownership within the family harder.
“When the parent dies it’s important that the business be able to transfer to the children so that it will continue. High estate taxes make that harder, and we want to make sure that we keep the estate taxes as low as possible.”
AFBF supports the legislation seeking to block the IRS proposal, House bill H.R. 6100 and Senate bill S. 3436.
“The leaders on these bills are hoping to pass them before the end of the year and any farmer or rancher who’s concerned about this proposed estate tax increase should contact their Senator and Representative and ask them to cosponsor these bills.”