96-21598. Generation-Skipping Transfer Tax; Correction

[Federal Register Volume 61, Number 166 (Monday, August 26, 1996)]
[Rules and Regulations]
[Page 43656]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21598]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 26

[TD 8644]
RIN 1545-AJ11; 1545-AL75; 1545-AO89


Generation-Skipping Transfer Tax; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations (TD 
8644) which were published in the Federal Register for Wednesday, 
December 27, 1995 (60 FR 66898), as corrected on June 12, 1996 (61 FR 
29653). The final regulations relate to generation-skipping transfer 
tax.

EFFECTIVE DATE: December 27, 1995.

FOR FURTHER INFORMATION CONTACT: Jim Hogan [phone] (not a toll-
free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are subject to these corrections are 
under chapter 13 of the Internal Revenue Code.

Need for Correction

    As published, TD 8644, as corrected, contains errors that may prove 
to be misleading and are in need of clarification.

List of Subjects in 26 CFR Part 26

    Estate taxes, Reporting and recordkeeping requirements.

    Accordingly, 26 CFR part 26 is corrected by making the following 
correcting amendments:

PART 26--GENERATION-SKIPPING TRANSFER TAX REGULATIONS UNDER THE TAX 
REFORM ACT OF 1986

    Paragraph 1. The authority citation for part 26 continues to read 
in part as follows:

    Authority: 26 U.S.C. 7805 * * *


Sec. 26.2601-1  [Corrected]

    Par. 2. In Sec. 26.2601-1, paragraph (b)(3)(iii)(B) is amended by 
revising ``(b)(3)(iii)(A), (B), and (C)'' to read ``(b)(3)(iii)(A)(1), 
(2), and (3)''.


Sec. 26.2642-5  [Corrected]

    Par. 3. Section 26.2642-5 is amended by removing the punctuation 
``;'' following the word ``ratio'' in the first sentence of paragraph 
(b)(1).


Sec. 26.2654-1  [Corrected]

    Par. 4. Section 26.2654-1 is amended by revising paragraph 
(a)(1)(ii)(B) to read as follows:


Sec. 26.2654-1  Certain trusts treated as separate trusts.

    (a) * * * (1) * * *
    (ii) * * *
    (B) If the pecuniary amount is payable in kind on the basis of 
value other than the date of distribution value of the assets, the 
trustee is required to allocate assets to the pecuniary payment in a 
manner that fairly reflects net appreciation or depreciation in the 
value of the assets in the fund available to pay the pecuniary amount 
measured from the valuation date to the date of payment.
* * * * *
Michael L. Slaughter,
Acting Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 96-21598 Filed 8-23-96; 8:45 am]
BILLING CODE 4830-01-U