Regulations Archives

Feb 6, 2018

EU-US Privacy Shield: Frequently Asked Questions

What is the EU-U.S. Privacy Shield? The EU-U.S. Privacy Shield (the “Privacy Shield”) is a framework designed by the U.S. Department of Commerce and the European Commission to provide companies in the U.S. and in the EU with a means to comply with data protection laws and regulations when transferring personal data between the U.S. and EU member countries. In July 2016, following an earlier EU Court of Justice decision that struck down the previous EU-U.S. Safe Harbor Framework, the European Commission determined that the Privacy Shield was adequate to permit data transfers to the U.S. under EU law. … Read more

Jan 16, 2018

Turning a License Network Into a Franchise

Most business owners want to achieve some form of steady long-term growth. For those owners who have established a true network of licensees that are marketing goods or services under a successful brand or trademark, such growth may be accomplished through converting this license system to a franchise system. The business model to be franchised must be capable of replication and not dependent on certain unique or exceptional circumstances. The nuts and bolts of the business operation must be easily transferable to franchisees so that they may continue prior success without relying on centralized management. In the case of converting… Read more

Sep 7, 2016

Call to Action: Proposed Regulations May Limit Valuation Discounts

The Internal Revenue Service published proposed regulations on August 4, 2016, that will severely limit valuation discounts on the transfer of ownership interests to family members in family-controlled entities, such as corporations, partnerships, and limited liability companies. The proposed regulations will apply to all family-controlled entities, even those that own operating businesses. Generally, when a minority interest in a family-controlled entity is being transferred the value of the interest is reduced for transfer tax purposes since the interest being transferred lacks control over the entity, as well as because the interest is not freely marketable outside of the family. These… Read more

Aug 31, 2015

Anticipated 2704 Valuation Discount Regulations

Authored by: Dana L. Mark In 1990 Chapter 14 (Special Valuation Rules) was added to the Internal Revenue Code to prevent the manipulation of the transfer tax value of a proprietary interest in certain entities in the context of transfers between related parties. In other words, what discounts ought to be taken into account in valuing the transferred interest if control of the entity remains within the family. Included among the new rules was Section 2704 dealing with the treatment of certain lapsing rights and restrictions. Essentially, in the context of a family held entity, if the interest in the… Read more