Internal Revenue Code Section 2701 and the Treasury Regulations thereunder govern certain partnership "freeze" transactions. These rules provide a very specific methodology for valuing partnership equity interests and the resulting gift amounts to gift tax reporting purposes. Partnership freezes can be a good vehicle for reducing value of an estate and saving significant gift and estate taxes. The specific valuation methodology are quite complicated. VSI has prepared several valuations which successfully utilized the four step valuation approach of Section 2701. If you are considering a partnership freeze and need assistance in working through the valuation calculations, VSI can be a valuable member of your team.