Which of the following statements regarding a family limited partnership is not correct? 1. Upon creation of an FLP, there are neither income nor gift tax consequences because the entity created is owned by the same person, or persons, who owned it before the transfer. 2. The primary purpose of an FLP is to transfer assets to younger generations of a family using annual exclusions and valuation discounts. 3. The use of an FLP can help protect family assets 4. The IRS rarely contests the creation of FLPs or the valuation discounts used in FLPs.