A bill to amend the Internal Revenue Code of 1954 to treat as a reasonable need of a business for purposes of the accumulated earnings tax any accumulation of earnings by such business before the death of a shareholder in anticipation of section 303 (a) distributions, and for other purposes.
Family Business Preservation Act - Amends the Internal Revenue Code to provide that for purposes of the accumulated earnings tax any accumulation before the death of a shareholder needed to redeem stock after death shall be treated as a reasonable business need.
Modifies the alternate extension of time for payment of the estate tax where the estate consists largely of an interest in a closely held business to increase from 15 to 25 the number of shareholders in a qualifying closely held business.
Introduced in Senate
Read twice and referred to the Committee on Finance.
Committee on Finance requested executive comment from OMB; Treasury Department.
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