[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
________________________________________________________________________
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