[Federal Register Volume 64, Number 83 (Friday, April 30, 1999)]
[Proposed Rules]
[Pages 23245-23246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10534]


      
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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 64, No. 83 / Friday, April 30, 1999 / 
Proposed Rules  

[[Page 23245]]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1, 20, and 25

[REG-103851-99]
RIN 1545-AX07


Use of Actuarial Tables in Valuing Annuities, Interests for Life 
or Terms of Years, and Remainder or Reversionary Interests

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: These proposed regulations relate to the use of actuarial 
tables in valuing annuities, interests for life or terms of years, and 
remainder or reversionary interests. These regulations are necessary 
because section 7520(c)(3) directs the Secretary to update the 
actuarial tables to reflect the most recent mortality experience 
available. These regulations will effect the valuation of inter vivos 
and testamentary transfers of interest dependent on one or more 
measuring lives. The text of the temporary regulations in the Rules and 
Regulations section of this issue of the Federal Register also serves 
as the text of these proposed regulations.

DATES: Written and electronic comments and requests for a public 
hearing must be received by July 29, 1999.

ADDRESSES: Send submissions to CC:DOM:CORP:R (REG-103851-99), room 
5226, Internal Revenue Service, POB 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may also be hand delivered Monday 
through Friday between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R 
(REG-103851-99), 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/taxregs/
comments.html.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, William L. 
Blodgett, (202) 622-3090; concerning submissions, Guy Traynor, (202) 
622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend Income Tax Regulations (26 CFR part 
1) under sections 642(c)(5) and 664, Estate Tax Regulations (26 CFR 
part 20) under section 2031, and Gift Tax Regulations (26 CFR part 25) 
under section 2512. These regulations revise actuarial tables used for 
the valuation of partial interests in property under section 7520 to 
reflect the mortality experience based on the 1990 United States 
census, the most recent mortality experience available.
    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 Analysis

    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 also has 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 a collection of information requirement on 
small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) 
does not apply. 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.

Proposed Effective Date

    The regulations are proposed to apply to the valuation of 
annuities, interests for life or terms of years, and remainder or 
reversionary interests for valuation dates after April 30, 1999.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any electronic and written comments (a 
signed original and 8 copies) that are submitted timely to the IRS. All 
comments will be available for public inspection and copying. A public 
hearing may be scheduled if requested in writing by any person who 
timely submits written comments. If a public hearing is scheduled, 
notice of the date, time, and place for the hearing will be published 
in the Federal Register.
    Drafting information. The principal author of these regulations is 
William L. Blodgett, Office of Assistant Chief Counsel (Passthroughs 
and Special Industries), IRS. However, other personnel from the IRS and 
Treasury Department participated in their development.

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

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 part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

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

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

    Par. 2. Section 1.170A-12 is amended by revising paragraphs (b)(2) 
and (b)(3) to read as follows:


Sec. 1.170A-12  Valuation of a remainder interest in real property for 
contributions made after July 31, 1969.

* * * * *
    (b) * * *
    (2) [The text of this proposed paragraph (b)(2) is the same as the 
text of Sec. 1.170A-12T(b)(2) published elsewhere in this issue of the 
Federal Register].

[[Page 23246]]

    (3) [The text of this proposed paragraph (b)(3) is the same as the 
text of Sec. 1.170A-12T(b)(3) published elsewhere in this issue of the 
Federal Register].
* * * * *
    Par. 3. Section 1.642(c)-6 is amended by revising paragraphs (d), 
(e) and (f) to read as follows:


Sec. 1.642(c)-6  Valuation of a remainder interest in property 
transferred to a pooled income fund.

* * * * *
    (d) [The text of this proposed paragraph (d) is the same as the 
text of Sec. 1.642(c)-6T(d) published elsewhere in this issue of the 
Federal Register].
    (e) [The text of this proposed paragraph (e) is the same as the 
text of Sec. 1.642(c)-6T(e) published elsewhere in this issue of the 
Federal Register].
    (f) [The text of this proposed paragraph (f) is the same as the 
text of Sec. 1.642(c)-6T(f) published elsewhere in this issue of the 
Federal Register].
    Par. 4. Section 1.664-4 is amended by revising paragraphs (a)(1), 
(d), (e) and (f) to read as follows:


Sec. 1.664-4  Calculation of the fair market value of the remainder 
interest in a charitable remainder unitrust.

    (a) * * *
    (1) [The text of this proposed paragraph (a)(1) is the same as the 
text of Sec. 1.664-4T(a)(1) published elsewhere in this issue of the 
Federal Register].
* * * * *
    (d) [The text of this proposed paragraph (d) is the same as the 
text of Sec. 1.664-4T(d) published elsewhere in this issue of the 
Federal Register].
    (e) [The text of this proposed paragraph (e) is the same as the 
text of Sec. 1.664-4T(e) published elsewhere in this issue of the 
Federal Register].
    (f) [The text of this proposed paragraph (f) is the same as the 
text of Sec. 1.664-4T(f) published elsewhere in this issue of the 
Federal Register].
    Par. 4. Section 1.7520-1 is amended by revising paragraphs (b)(2), 
(c)(1), (c)(2) and (d) to read as follows:


Sec. 1.7520-1  Valuation of annuities, unitrust interest, interests for 
life or terms of years, and remainder or reversionary interests.

* * * * *
    (b) * * *
    (2) [The text of this proposed paragraph (b)(2) is the same as the 
text of Sec. 1.7520-1T(b)(2) published elsewhere in this issue of the 
Federal Register].
    (c) * * *
    (1) [The text of this proposed paragraph (c)(1) is the same as the 
text of Sec. 1.7520-1T(c)(1) published elsewhere in this issue of the 
Federal Register].
    (2) [The text of this proposed paragraph (c)(2) is the same as the 
text of Sec. 1.7520-1T(c)(2) published elsewhere in this issue of the 
Federal Register].
    (d) [The text of this proposed paragraph (d) is the same as the 
text of Sec. 1.7520-1T(d) published elsewhere in this issue of the 
Federal Register].

PART 20--ESTATE TAX; ESTATES OF DECEDENTS DYING AFTER AUGUST 16, 
1954

    Par. 5. The authority citation for part 20 continues to read in 
part as follows:

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

    Par. 6. Section 20.2031-7 is amended by revising paragraphs (c), 
(d) and (e) to read as follows:


Sec. 20.2031-7  Valuation of annuities, interests for life or term of 
years , and remainder or reversionary interests.

* * * * *
    (c) [The text of this proposed paragraph (c) is the same as the 
text of Sec. 20.2031-7T(c) published elsewhere in this issue of the 
Federal Register].
    (d) [The text of this proposed paragraph (d) is the same as the 
text of Sec. 20.2031-7T(d) published elsewhere in this issue of the 
Federal Register].
    (e) [The text of this proposed paragraph (e) is the same as the 
text of Sec. 20.2031-7T(e) published elsewhere in this issue of the 
Federal Register].
    Par. 7. Section 20.7520-1 is amended by revising paragraphs (a)(2), 
(b)(2), (c)(1), (c)(2) and (d) to read as follows:


Sec. 20.7520-1  Valuation of annuities, unitrust interests, interests 
for life or term of years, and remainder or reversionary interests.

    (a) * * *
    (2) [The text of this proposed paragraph (a)(2) is the same as the 
text of Sec. 20.7520-1T(a)(2) published elsewhere in this issue of the 
Federal Register].
* * * * *
    (b) * * *
    (2) [The text of this proposed paragraph (b)(2) is the same as the 
text of Sec. 20.7520-1T(b)(2) published elsewhere in this issue of the 
Federal Register].
    (c) * * *
    (1) [The text of this proposed paragraph (c)(1) is the same as the 
text of Sec. 20.7520-1T(c)(1) published elsewhere in this issue of the 
Federal Register].
    (2) [The text of this proposed paragraph (c)(2) is the same as the 
text of Sec. 20.7520-1T(c)(2) published elsewhere in this issue of the 
Federal Register].
    (d) [The text of this proposed paragraph (d) is the same as the 
text of Sec. 20.7520-1T(d) published elsewhere in this issue of the 
Federal Register].

PART 25--GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954

    Par. 8. The authority citation for part 25 continues to read in 
part as follows:

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

    Par. 9. Section 25.2512-5 is amended by revising paragraphs (c), 
(d) and (e) to read as follows:


Sec. 25.2512-5  Valuation of annuities, unitrust interest, interests 
for life or term of years, and remainder or reversionary interests.

* * * * *
    (c) [The text of this proposed paragraph (c) is the same as the 
text of Sec. 25.2512-5T(c) published elsewhere in this issue of the 
Federal Register].
    (d) [The text of this proposed paragraph (d) is the same as the 
text of Sec. 25.2512-5T(d) published elsewhere in this issue of the 
Federal Register].
    (e) [The text of this proposed paragraph (e) is the same as the 
text of Sec. 25.2512-5T(e) published elsewhere in this issue of the 
Federal Register].
    Par. 10. Section 25.7520-1 is amended by revising paragraphs 
(b)(2), (c)(1), (c)(2) and (d) to read as follows:


Sec. 25.7520-1  Valuation of annuities, unitrust interests, interests 
for life or term of years, and remainder or reversionary interests.

* * * * *
    (b) * * *
    (2) [The text of this proposed paragraph (b)(2) is the same as the 
text of Sec. 25.7520-1T(b)(2) published elsewhere in this issue of the 
Federal Register].
    (c) * * *
    (1) [The text of this proposed paragraph (c)(1) is the same as the 
text of Sec. 25.7520-1T(c)(1) published elsewhere in this issue of the 
Federal Register].
    (2) [The text of this proposed paragraph (c)(2) is the same as the 
text of Sec. 25.7520-1T(c)(2) published elsewhere in this issue of the 
Federal Register].
    (d) [The text of this proposed paragraph (d) is the same as the 
text of Sec. 25.7520-1T(d) published elsewhere in this issue of the 
Federal Register].
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 99-10534 Filed 4-29-99; 8:45 am]
BILLING CODE 4830-01-U