[Federal Register Volume 77, Number 117 (Monday, June 18, 2012)]
[Proposed Rules]
[Pages 36229-36231]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-14775]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 20 and 25
[REG-141832-11]
RIN 1545-BK74
Portability of a Deceased Spousal Unused Exclusion Amount
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 that provide
guidance on the estate and gift tax applicable exclusion amount, in
general, as well as on the applicable requirements for electing
portability of a deceased spousal unused exclusion (DSUE) amount to the
surviving spouse and on the applicable rules for the surviving spouse's
use of this DSUE amount. The text of the temporary regulations also
serves as the text of the proposed regulations set forth in this notice
of proposed rulemaking. This document also provides a notice of public
hearing on these proposed regulations.
DATES: Written or electronic comments must be received by September 17,
2012. Outlines of topics to be discussed at the public hearing
scheduled for October 18, 2012, at 10 a.m., must be received by
September 27, 2012.
ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-141832-11), Room 5205,
Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
141832-11), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue NW., Washington, DC; or sent electronically via the Federal
eRulemaking Portal at http://www.regulations.gov (IRS-REG-141832-11).
The public hearing will be held in the IRS Auditorium, Internal Revenue
Building, 1111 Constitution Avenue NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Karlene Lesho at (202) 622-3090; concerning the submission of comments,
the hearing, or to be placed on the building access list to attend the
hearing, Oluwafunmilayo Taylor at (202) 622-7180 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information contained in this notice of proposed
rulemaking has been approved by the Office of Management and Budget, in
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3507(d)), under Form 706, ``United States Estate (and Generation-
Skipping Transfer) Tax Return,'' and assigned control number 1545-0015.
Comments on the collection of information should be sent to the
Office of Management and Budget, Attn: Desk Officer for the Department
of the Treasury, Office of Information and Regulatory Affairs,
Washington, DC 20503, with copies to the Internal Revenue Service,
Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP, Washington, DC
20224. Comments on the collection of information should be received by
August 17, 2012. Comments are specifically requested concerning:
Whether the proposed collection of information is necessary for the
proper performance of the functions of the IRS, including whether the
information will have practical utility;
The accuracy of the estimated burden associated with the proposed
collection of information;
How the quality, utility, and clarity of the information to be
collected may be enhanced;
How the burden of complying with the proposed collections of
information may be minimized, including through the application of
automated collection techniques or other forms of information
technology; and
Estimates of capital or start-up costs of operation, maintenance,
and purchase of service to provide information.
The collection of information in this proposed regulation is in
proposed Sec. Sec. 20.2010-2(a), 20.2010-2(a)(1), 20.2010-2(a)(3)(i),
20.2010-2(a)(7)(ii)(B), and 20.2010-2(b). The information in Sec. Sec.
20.2010-2(a), 20.2010-2(a)(1), and 20.2010-2(b) as it affects estates
not otherwise required to file an estate tax return under section
6018(a) is necessary in order for an executor of a decedent's estate to
elect portability of a DSUE amount to the surviving spouse. The
information in Sec. 20.2010-2(a)(3)(i) is necessary in order for an
executor of a decedent's estate to signify that the estate is not
electing portability of a DSUE amount to the surviving spouse. The
information in Sec. 20.2010-2(a)(7)(ii)(B) is necessary in order to
evaluate whether an estate qualifies for a special rule relating to
applicable estate tax return requirements. The collection of
information is voluntary to obtain a benefit. The likely respondents
are executors of estates of decedents having a date of death in 2011 or
2012 or any subsequent period in which portability of a DSUE amount is
in effect.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid control number assigned by the Office of
Management and Budget.
Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
Background
The temporary regulations in the Rules and Regulations section of
this issue of the Federal Register make additions to the Estate Tax
Regulations (26 CFR part 20) under sections 2001 and 2010 of the
Internal Revenue Code (Code) and Gift Tax Regulations (26 CFR part 25)
under section 2505 of the Code. The temporary regulations provide
guidance on the estate and gift tax applicable credit amount under
sections 2010 and 2505 of the Code. In addition, the temporary
regulations provide guidance on the portability of a deceased spousal
unused exclusion (DSUE) amount under section 2010(c) of the Code,
including the applicable requirements for electing portability of a
DSUE amount to the surviving spouse,
[[Page 36230]]
for computing the deceased spouse's DSUE amount, and for the surviving
spouse's use of the DSUE amount. The text of those regulations also
serves as the text of these regulations. The preamble to the temporary
regulations explains the temporary regulations and these proposed
regulations.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not considered a significant regulatory action as defined in Executive
Order 12866, as supplemented by Executive Order 13563. Therefore, a
regulatory flexibility assessment is not required. In addition, section
553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations. It is hereby certified that the
collection of information contained in this regulation will not have a
significant economic impact on a substantial number of small entities.
This certification is based on the fact that these regulations
primarily affect estates of a decedent which generally are not small
entities under the Act. Thus, we do not expect a substantial number of
small entities to be effected. Therefore, a Regulatory Flexibility
Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is
not required. Pursuant to section 7805(f) of the Code, this notice of
proposed rulemaking has been 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 written comments (a signed original
and eight (8) copies) or electronic comments that are submitted timely
to the IRS as prescribed in this preamble under the ADDRESSES heading.
The IRS and the Treasury Department request comments on all aspects of
the proposed rules. All comments will be available at
www.regulations.gov or for public inspection and copying.
A public hearing has been scheduled for October 18, 2012, in the
IRS auditorium, Internal Revenue Building, 1111 Constitution Avenue
NW., Washington, DC. Due to building security procedures, visitors must
enter at the Constitution Avenue entrance. In addition, all visitors
must present photo identification to enter the building. Because of
access restrictions, visitors will not be admitted beyond the immediate
entrance more than 30 minutes before the hearing starts. For
information about having your name placed on the building access list
to attend the hearing, see the FOR FURTHER INFORMATION CONTACT section
of this preamble.
The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who
wish to present oral comments at the hearing must submit electronic or
written comments (a signed original and eight (8) copies) and an
outline of the topics to be discussed and the time to be devoted to
each topic by September 27, 2012. 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 these regulations is Karlene Lesho, Office
of the Associate Chief Counsel (Passthroughs and Special Industries).
Other personnel from the IRS and the Treasury Department participated
in their development.
List of Subjects
26 CFR Part 20
Estate taxes, Reporting and recordkeeping requirements.
26 CFR Part 25
Gift taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR parts 20 and 25 are proposed to be amended as
follows:
PART 20--ESTATE TAX; ESTATE OF DECEDENTS DYING AFTER AUGUST 16,
1954
Paragraph 1. The authority citation for part 20 is amended by
adding entries in numerical order to read as follows:
Authority: 26 U.S.C. 7805. * * *
Section 20.2010-0 also issued under 26 U.S.C. 2010(c)(6).
Section 20.2010-1 also issued under 26 U.S.C. 2010(c)(6).
Section 20.2010-2 also issued under 26 U.S.C. 2010(c)(6).
Section 20.2010-3 also issued under 26 U.S.C. 2010(c)(6). * * *
Par. 2. Section 20.2001-2 is added to read as follows:
Sec. 20.2001-2 Valuation of adjusted taxable gifts for purposes of
determining the deceased spousal unused exclusion amount of last
deceased spouse.
[The text of the proposed amendments to Sec. 20.2001-2(a) and (b)
is the same as the text of Sec. 20.2001-2T(a) and (b) published
elsewhere in this issue of the Federal Register].
Par. 3. Section 20.2010-0 is added to read as follows:
Sec. 20.2010-0 Table of contents.
[The entries in the table of contents for the proposed amendments
to Sec. 20.2010-0 are the same as the entries in the table of contents
for Sec. 20.2010-0T published elsewhere in this issue of the Federal
Register].
Par. 4. Section 20.2010-1 is added to read as follows:
Sec. 20.2010-1 Unified credit against estate tax; in general.
[The text of the proposed amendments to Sec. 20.2010-1(a) through
(e) is the same as the text of Sec. 20.2010-1T(a) through (e)
published elsewhere in this issue of the Federal Register].
Par. 5. Section 20.2010-2 is added to read as follows:
Sec. 20.2010-2 Portability provisions applicable to estate of a
decedent survived by a spouse.
[The text of the proposed amendments to Sec. 20.2010-2(a) through
(e) is the same as the text of Sec. 20.2010-2T(a) through (e)
published elsewhere in this issue of the Federal Register].
Par. 6. Section 20.2010-3 is added to read as follows:
Sec. 20.2010-3 Portability provisions applicable to the surviving
spouse's estate.
[The text of the proposed amendments to Sec. 20.2010-3(a) through
(f) is the same as the text of Sec. 20.2010-3T(a) through (f)
published elsewhere in this issue of the Federal Register].
PART 25--GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954
Par. 7. The authority citation for part 25 is amended by adding an
entry in numerical order to read as follows:
Authority: 26 U.S.C. 7805.
Section 25.2505-2T also issued under 26 U.S.C. 2010(c)(6). * * *
Par. 8. Section 25.2505-0 is added to read as follows:
Sec. 25.2505-0 Table of contents.
[The entries in the table of contents for the proposed amendments
to Sec. 25.2505-0 are the same as the entries in the table of contents
for Sec. 25.2505-0T published elsewhere in this issue of the Federal
Register].
Par. 9. Section 25.2505-1 is added to read as follows:
Sec. 25.2505-1 Unified credit against gift tax; in general.
[The text of the proposed amendments to Sec. 25.2505-1(a) through
[[Page 36231]]
(e) is the same as the text of Sec. 25.2505-1T(a) through (e)
published elsewhere in this issue of the Federal Register].
Par. 10. Section 25.2505-2 is added to read as follows:
Sec. 25.2505-2 Gifts made by a surviving spouse having a DSUE amount
available.
[The text of the proposed amendments to Sec. 25.2505-2(a) through
(g) is the same as the text of Sec. 25.2505-2T(a) through (g)
published elsewhere in this issue of the Federal Register].
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2012-14775 Filed 6-15-12; 8:45 am]
BILLING CODE 4830-01-P