The Department of Treasury released its Priority Guidance Plan on Sept. 9. Regarding estate, gifts and trusts, the following items were listed as top priorities for the administration.
The administration wishes to finalize regulations establishing a user fee for estate tax closing letters (proposed regulations were published on Dec. 31, 2020) and for the following Internal Revenue Code sections:
- IRC Sections 1014(f) and 6035 regarding basis consistency between estate and person acquiring property from decedent (proposed and temporary regulations were published on March 4, 2016.
- IRC Section 2642(g) concerning the extensions of time to allocate generation-skipping transfer (GST) tax exemption.
- IRC Section 2801 regarding U.S. citizens and residents who receive gifts or bequests from certain expatriates (proposed regulations were published on Sept. 10, 2015).
- IRC Section 2032(a) regarding restrictions on estate assets during the 6-month alternate valuation period (proposed regulations were published on Nov. 18, 2011).
In addition, the Priority Guidance Plan listed these IRC sections as the Treasury Department’s focus for issuing new proposed regulations:
- IRC Section 2010 regarding whether gifts that are includible in the gross estate should be excepted from the special rule of Treasury Regulations Section 20.2010-1(c).
- IRC Section 2053 concerning personal guarantees and the application of present value concepts in determining the deductible amount of expenses and claims against the estate.
- IRC Section 2632 providing guidance governing the allocation of GST tax exemption in the event the Internal Revenue Service grants relief under Section 2642(g), as well as addressing the definition of a GST trust under Section 2632(c) and providing ordering rules when GST tax exemption is allocated in excess of the transferor’s remaining exemption.
- IRC Section 7520 regarding the use of actuarial tables in valuing annuities, interests for life or terms of years and remainder or reversionary interests.