[Federal Register Volume 60, Number 162 (Tuesday, August 22, 1995)]
[Proposed Rules]
[Pages 43574-43575]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19865]



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DEPARTMENT OF TREASURY

Internal Revenue Service

26 CFR Part 20

[PS-25-94]
RIN 1545-AS66


Requirements to Ensure Collection of Section 2056A Estate Tax

AGENCY: Internal Revenue Service (IRS), Treasury.


[[Page 43575]]

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 additional requirements necessary to ensure the collection of the 
estate tax imposed under section 2056A(b) with respect to taxable 
events involving qualified domestic trusts described in section 
2056A(a). 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: Written comments must be received by November 20, 1995. Outlines 
of topics to be discussed at the public hearing scheduled for January 
16, 1996, at 10 a.m., must be received by December 26, 1995.

ADDRESSES: Send submissions to: CC:DOM:CORP:T:R: (PS-25-94), room 5228, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. In the alternative, submissions may be hand delivered to: 
CC:DOM:CORP:T:R (PS-25-94), Internal Revenue Service, room 5228, 1111 
Constitution Avenue NW., Washington, DC. The public hearing will be 
held in the Auditorium, Internal Revenue Service Building, 1111 
Constitution Avenue NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Susan 
Hurwitz, (202) 622-3090; concerning submissions and the hearing, 
Michael Slaughter, (202) 622-7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collections of information contained in this notice of proposed 
rulemaking have been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act (44 U.S.C. 
3504(h)). Comments on the collections of information should be sent to 
the Office of Management and Budget, Attn: Desk Officer for the 
Department of Treasury, Office of Information and Regulatory Affairs, 
Washington, DC 20503, with copies to the Internal Revenue Service, 
Attn: IRS Reports Clearance Officer, PC:FP, Washington, DC 20224.
    The collections of information are in Secs. 20.2056A-2T(d). This 
information is required by the IRS in order to ensure the 
collectibility of the estate tax imposed under section 2056A(b) in 
cases (1) where a bond or letter of credit security arrangement 
alternative is adopted and (2) where the qualified domestic trust holds 
foreign real property or the principal residence exclusion applies. 
This information will be used to monitor compliance with the additional 
regulatory requirements contained in Sec. 20.2056A-2T(d)(1)(i) and 
(iv). The likely respondents will be trustees of qualified domestic 
trusts. Estimated total annual reporting burden: 6110 hours. The 
estimated annual burden per respondent varies from 30 minutes to 3 
hours, depending upon individual circumstances, with an estimated 
average of 1.37 hours.
    Estimated number of respondents: 4470.
    Estimated annual frequency of responses: 1.

Background

    Temporary regulations in the Rules and Regulations portion of this 
issue of the Federal Register amend Estate Tax Regulations (26 CFR part 
20) relating to section 2056A. The temporary regulations contain rules 
relating to the additional requirements to ensure the collectibility of 
the estate tax imposed under section 2056A.
    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) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do 
not apply to these regulations, and 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 written comments that are submitted 
timely (preferably a signed original and eight copies) to the IRS. All 
comments will be available for public inspection and copying.
    A public hearing has been scheduled for January 16, 1996, at 10 
a.m. in the Auditorium, 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 written comments by November 20, 1995 and submit an outline of 
the topics to be discussed and the time to be devoted to each topic by 
December 26, 1995.
    A period of 10 minutes will 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 Hurwitz, 
Office of Assistant Chief Counsel (Passthroughs and Special 
Industries). However, other personnel from 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

    Par. 1. The authority citation for part 20 continues to read in 
part as follows:

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

    Par. 2. Section 20.2056A-2 is amended by adding paragraph (d) to 
read as follows:


Sec. 20.2056A-2  Requirements for qualified domestice trust.

* * * * *
    (d) [The text of this proposed regulation is the same as the text 
of Sec. 20.2056A-2T(d) published elsewhere in this issue of the Federal 
Register].
Margaret Milner Richardson,
Commissioner of Internal Revenue.
[FR Doc. 95-19865 Filed 8-21-95; 8:45 am]
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