You didn’t think we could provide all these updates on federal agencies increasing fines and tightening restrictions on businesses without mentioning the Internal Revenue Service, did you?  We were advised by DDIFO Business Member Cynthia A. Capobianco, CPA that the Treasury Department released proposed regulations earlier this month to dramatically restrict tax options regarding family gifts and bequests.  The proposed regulation was published in the Federal Register on August 4, triggering a 90-day public comment period (expires November 2, 2016), which will be followed by a public hearing on December 1.  Assistant Treasury Secretary for Tax Policy Mark Mazur tipped his hand in a blog on the change describing it as “a new regulatory proposal to close a tax loophole that certain taxpayers have long used to understate the fair market value of their assets for estate and gift tax purposes.”  He categorizes those who use “aggressive tax planning tactics” as paying “less than they should in estate and gift taxes.” Mazur concludes by explaining that the regulations won’t go into effect until they are “carefully considered and then 30 days after, the regulations are finalized.”  In other words, “we’ll give him a fair trial and then we’ll hang him!