NFU Defends Family Farmers Against Proposed IRS Rule Change

National Farmers Union submitted comments to the IRS urging that a proposed rule change for the taxable value of assets be amended to consider family farmers and ranchers. The law currently provides meaningful relief for family farmers to transfer their farm operations to the next generation through provisions that account for several variations in asset valuation. However, the U.S. Department of Treasury announced in August a regulatory proposal that would remove this provision for all taxpayers without consideration for the unique challenges that farm families face. NFU President Roger Johnson said in his letter
Johnson: “We’re concerned that changes within the proposed regulations would deny essential discounts to family farms and significantly increase taxes on the transfer of family farms threatening their ability to keep their operations intact. Treating family farmers looking to responsibly transfer their operations as wealthy individuals using aggressive tax strategies to artificially lower their asset value to avoid paying higher taxes is an unfair representation of family farm agriculture. I hope the Department of Treasury will take responsible action and consider farmers and ranchers in their final rule.”