[Federal Register Volume 62, Number 32 (Tuesday, February 18, 1997)]
[Proposed Rules]
[Pages 7188-7189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3399]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 20
[REG-209830-96]
RIN 1545-AU27
Estate and Gift Tax Marital Deduction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations and notice of public hearing.
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SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS is issuing temporary regulations relating to
the estate tax marital deduction to conform the Estate Tax Regulations
to recent court decisions. The text of those temporary regulations also
serves as the text of these proposed regulations. This document also
provides notice of a public hearing on these proposed regulations.
DATES: Comments must be received by May 19, 1997. Outlines of topics to
be discussed at the public hearing scheduled for June 3, 1997, at 10
a.m. must be received by May 13, 1997.
ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-209830-96), room
5228, Internal Revenue Service, POB 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may also be hand delivered between
the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-209830-96),
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW.,
Washington, DC. Alternatively, taxpayers may submit comments
electronically via the internet by selecting the ``Tax Regs'' option on
the IRS Home Page, or by submitting comments directly to the IRS
internet site at http://www.irs.ustreas.gov/prod/tax____ regs/
comments.html. The public hearing will be held in the Commissioner's
Conference Room, room 3313, Internal Revenue Building, 1111
Constitution Avenue NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Susan B.
Hurwitz, (202) 622-3090; concerning submissions and the hearing,
Evangelista Lee, (202) 622-7190 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
Temporary regulations in the Rules and Regulations section of this
issue of the Federal Register amend the Estate Tax Regulations (26 CFR
part 20) relating to sections 2044 and 2056. The temporary regulations
conform the estate tax marital deduction regulations to recent court
decisions in Estate of Clayton v. Commissioner, 976 F.2d 1486 (5th Cir.
1992), rev'g 97 T.C. 327 (1991); Estate of Robertson v. Commissioner,
15 F.3d 779 (8th Cir. 1994), rev'g 98 T.C. 678 (1992); Estate of
Spencer v. Commissioner, 43 F.3d 226 (6th Cir. 1995), rev'g T.C. Memo.
1992-579; and Estate of Clack v. Commissioner, 106 T.C. 131 (1996).
The text of those temporary regulations also serves as the text of
these proposed regulations. The preamble to the temporary regulations
explains the temporary regulations.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in EO 12866. Therefore,
a regulatory assessment is not required. It has also been determined
that section 553(b) of the Administrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regulations and, because these
regulations do not impose on small entities a collection of information
requirement, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does
not apply. Therefore, a Regulatory Flexibility Analysis is not
required. Pursuant to section 7805(f) of the Internal Revenue Code,
this notice of proposed rulemaking will be submitted to the Chief
Counsel for Advocacy of the Small Business Administration for comment
on its impact on small business.
Comments and Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any comments that are submitted timely
(in the manner described in ADDRESSES) to the IRS. All comments will be
available for public inspection and copying.
A public hearing has been scheduled for June 3, 1997, at 10 a.m. in
the Commissioner's Conference Room, room 3313, Internal Revenue
Building, 1111 Constitution Avenue NW., Washington, DC. Because of
access restrictions, visitors will not be admitted beyond the building
lobby more than 15 minutes before the hearing starts.
The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons
that wish to present oral comments at the hearing must submit comments
by May 19, 1997 and submit an outline of the topics to be discussed and
the time to be devoted to each topic by May 13, 1997.
A period of 10 minutes will be allotted to each person for making
comments.
An agenda showing the scheduling of the speakers will be prepared
after the deadline for receiving outlines has passed.
Copies of the agenda will be available free of charge at the
hearing.
Drafting Information
The principal author of the proposed regulations is Susan B.
Hurwitz, Office of Assistant Chief Counsel (Passthroughs and Special
Industries). However, other personnel from the IRS and the Treasury
Department participated in their development.
List of Subjects in 26 CFR Part 20
Estate taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 20 is proposed to be amended as follows:
PART 20--ESTATE TAX; ESTATES OF DECEDENTS DYING AFTER AUGUST 16,
1954
Paragraph 1. The authority citation for part 20 continues to read
in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. In Sec. 20.2044-1, paragraph (e) Example 8 is added to read
as follows:
Sec. 20.2044-1 Certain property for which marital deduction was
previously allowed.
[The text of paragraph (e) Example 8 as proposed is the same as the
text of Sec. 20.2044-1T(e) Example 8 published elsewhere in this issue
of the Federal Register].
Par. 3. Section 20.2056(b)-7 is amended to read as follows:
Sec. 20.2056(b)-7 Election with respect to life estate for surviving
spouse.
[The text of paragraphs (d)(3), and (h) Example 6 is the same as
the text of Sec. 20.2056(b)-7T(d)(3) (ii), and (h) Example 6 published
elsewhere in this issue of the Federal Register].
[[Page 7189]]
Par. 4. Section 20.2056(b)-10 is revised to read as follows:
Sec. 20.2056(b)-10 Effective dates.
Except as specifically provided in Secs. 20.2056(b)-5(c)(3)(ii) and
(iii), 20.2056(b)-7T(d)(3), 20.2056(b)-7(e)(5), and 20.2056(b)-8(b),
the provisions of Secs. 20.2056(b)-5(c), 20.2056(b)-7, 20.2056(b)-8,
and 20.2056(b)-9 are effective with respect to estates of decedents
dying after March 1, 1994. With respect to decedents dying on or before
March 1, 1994, the executor of the decedent's estate may rely on any
reasonable interpretation of the statutory provisions. For these
purposes, the provisions of Secs. 20.2056(b)-5(c), 20.2056(b)-7,
20.2056(b)-8, and 20.2056(b)-9 (as well as project LR-211-76 (1984-1
C.B. 598), see Sec. 601.601(d)(2)(ii)(b) of this chapter), are
considered a reasonable interpretation of the statutory provisions.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
[FR Doc. 97-3399 Filed 2-14-97; 8:45 am]
BILLING CODE 4830-01-U
