The 2008 Supplement for Closely Held Businesses in Estate Planning covers the legislative, regulatory and judicial developments that are of most importance to financial and estate planning professionals advising closely held businesses and their owners. It brings the practitioner up to date in this constantly changing area. Highlights of the 2008 Supplement include: Update of inflation adjustments for 2008. Discussion of IRS Proposed Regulations limiting an estate's deductions to payments actually made during the course of administration. Ongoing IRS attacks on family limited partnerships, and efforts by taxpayers to use favorable valuation adjustment clauses. Further private letter ruling guidance addressing retirement plans payable to trusts and how to determine their minimum required distributions. Moderation of the rules to determine active involvement in a trade or business for purposes of Section 6166 qualification. Modification of the IRS strict requirements for security in extended payment cases. Discussion of amendments to the Subchapter S rules brought about by the Small Business and Work Opportunity Tax Act of 2007, signed into law on May 25, 2007. Examination of significant provisions of the Tax Relief and Health Care Act of 2006, signed into law on December 20, 2006. Discussion of Rainbow Tax Service Inc. v. Commissioner, 128 T.C. No. 5 (2007), holding that a taxpayers tax return preparation services constituted services within the field of accounting and therefore taxpayer was a qualified personal service corporation for purposes of I .R.C. 448(d)(2). Coverage of new Proposed Treasury Regulations which provide guidance on S corporation family shareholder rules and the allowance of suspended losses to the spouse or former spouse of an S corporation shareholder, among other matters. Discussion of Proposed Treasury Regulations that provide guidance on issues involving the active trade or business requirement under I.R.C. 355(b), including guidance resulting from the enactment of I.R.C. 355(b)(3). Rev Rul 2007-8, 2007-7 I.R.B. 469 discussing the inapplicability of I.R.C. 357(c)(1) to certain transactions that qualify as reorganizations regardless of whether they are also exchanges to which I.R.C. 351 applies.