Thomas Daschle: “since 1988, I have studied the effects on family farmers of a provision in the estate tax law--section 2032A. While…”

“since 1988, I have studied the effects on family farmers of a provision in the estate tax law--section 2032A. While section 2032A may seem a minor provision to some, it is critically important to family-run farms. A problem with respect to the Internal Revenue Service's interpretation of this provision has been festering for a number of years and threatens to force the sale of many family farms. Section 2032A, which bases the estate tax applicable to a family farm on its use as a farm, rather than on its market value, reflects the intent of Congress to help families keep their farms. A family that has worked hard to maintain a farm should not have to sell it to a third party solely to pay stiff estate taxes resulting from increases in the value of the land. Under section 2032A, inheriting family members are required to continue farming the property for at least 15 years, in order to avoid having the IRS 'recapture' the tax savings.”