In late August, the United States Treasury Department issued proposed regulations to § 2704 of the Internal Revenue Code which provides rules for valuing business interests transferred to family members. The proposed changes triggered an outcry in the media, and many advisors have urged taxpayers to take steps to make large transfers before year-end. In more recent days, Catherine V. Hughes, head of the Office of Tax Policy of the Department of the Treasury, has acknowledged publicly that the proposed regulations need improvement and that her office will be working to clarify the regulations. More