[Federal Register Volume 74, Number 87 (Thursday, May 7, 2009)]
[Proposed Rules]
[Pages 21519-21521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-10110]
Federal Register / Vol. 74, No. 87 / Thursday, May 7, 2009 / Proposed
Rules
[[Page 21519]]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1, 20, and 25
[REG-107845-08]
RIN 1545-BH67
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.
-----------------------------------------------------------------------
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 will affect the
valuation of inter vivos and testamentary transfers of interest
dependent on one or more measuring lives. 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. 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 August 5, 2009.
ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-107845-08), room 5205,
Internal Revenue Service, PO 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-
107845-08), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC, or sent via the Federal eRulemaking Portal
at http://www.regulations.gov (REG-107845-08).
FOR FURTHER INFORMATION CONTACT: Mayer R. Samuels, (202) 622-3090;
concerning submissions of comments,
[email protected], (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 2000 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 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 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 regulation has been submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on its impact
on small business.
Comments and Requests for a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written (a signed original and eight
(8) copies) or electronic comments that are submitted timely to the
IRS. The IRS and the Treasury Department also request comments on the
clarity of the proposed rules and how they can be made easier to
understand. All comments will be available for public inspection and
copying. A public hearing will be scheduled if requested in writing by
any person that timely submits written comments. If a public hearing is
scheduled, notice of the date, time, and place for the public hearing
will be published in the Federal Register.
Drafting Information
The principal author of these regulations is Mayer R. Samuels,
Office of the Associate 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 as follows:
1. Paragraphs (b)(2) and (b)(3) are revised.
2. Paragraph (f) is added.
The revisions and addition 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].
(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].
* * * * *
(f) [The text of this proposed paragraph (f) is the same as the
text of Sec. 1.170A-12T(f) 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)(1),
[[Page 21520]]
(e)(2), (e)(5), (e)(7), 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)(1) [The text of this proposed paragraph (e)(1) is the same as
the text of Sec. 1.664-4T(e)(1) published elsewhere in this issue of
the Federal Register].
(e)(2) [The text of this proposed paragraph (e)(2) is the same as
the text of Sec. 1.664-4T(e)(2) published elsewhere in this issue of
the Federal Register].
* * * * *
(e)(5) [The text of this proposed paragraph (e)(5) is the same as
the text of Sec. 1.664-4T(e)(5) published elsewhere in this issue of
the Federal Register].
* * * * *
(e)(7) [The text of this proposed paragraph (e)(7) is the same as
the text of Sec. 1.664-4T(e)(7) 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. 5. Section 1.7520-1 is amended by revising paragraphs (a)(1),
(a)(2), (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.
(a)(1) [The text of this proposed paragraph (a)(1) is the same as
the text of Sec. 1.7520-1T(a)(1) published elsewhere in this issue of
the Federal Register].
(2) [The text of this proposed paragraph (a)(2) is the same as the
text of Sec. 1.7520-1T(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. 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. 6. The authority citation for part 20 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 7. Section 20.2031-7 is amended by revising paragraphs (c),
(d)(1), (d)(2), (d)(3), (d)(4), (d)(5), (d)(7), 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)(1) through (d)(5) is
the same as the text of Sec. 20.2031-7T(d)(1) through (d)(5) published
elsewhere in this issue of the Federal Register].
* * * * *
(7) [The text of this proposed paragraph (d)(7) is the same as the
text of Sec. 20.2031-7T(d)(7) 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. 8. Section 20.2032-1 is amended by revising paragraphs (f)(1)
and (h) to read as follows:
Sec. 20.2032-1 Alternate valuation.
* * * * *
(f) * * *
(1) [The text of this proposed paragraph (f)(1) is the same as the
text of Sec. 20.2032-1T(f)(1) published elsewhere in this issue of the
Federal Register].
* * * * *
(h) [The text of this proposed paragraph (h) is the same as the
text of Sec. 20.2032-1T(h) published elsewhere in this issue of the
Federal Register].
Par. 9. Section 20.2055-2 is amended by revising paragraphs
(e)(3)(iii) and (f)(4) to read as follows:
Sec. 20.2055-2 Transfers not exclusively for charitable purposes.
* * * * *
(e) * * *
(3) * * *
(iii) [The text of this proposed paragraph (e)(3)(iii) is the same
as the text of Sec. 20.2055-2T(e)(3)(iii) published elsewhere in this
issue of the Federal Register].
* * * * *
(f) * * *
(4) [The text of this proposed paragraph (f)(4) is the same as the
text of Sec. 20.2055-2T(f)(4) published elsewhere in this issue of the
Federal Register].
Par. 10. Section 20.2056A-4 is amended by revising paragraph
(c)(4)(ii)(B) and Example 4 in paragraph (d) to read as follows:
Sec. 20.2056A-4 Procedures for conforming marital trusts and nontrust
marital transfers to the requirements of a qualified domestic trust.
* * * * *
(c) * * *
(4) * * *
(ii) * * *
(B) [The text of this proposed paragraph (c)(4)(ii)(B) is the same
as the text of Sec. 20.2056A-4T(c)(4)(ii)(B) published elsewhere in
this issue of the Federal Register].
* * * * *
(d) * * *
Example 4. [The text of this proposed paragraph (d), Example 4 is
the same as the text of Example 4 in Sec. 20.2056A-4T(d) published
elsewhere in this issue of the Federal Register].
Par. 11. Section 20.7520-1 is amended by revising paragraphs
(a)(1), (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) * * * (1) [The text of this proposed paragraph (a)(1) is the
same as the text of Sec. 20.7520-1T(a)(1) published elsewhere in this
issue of the Federal Register].
(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].
(3) * * *
(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].
[[Page 21521]]
(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. 12. The authority citation for part 25 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 13. 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. 14. Section 25.2522(c)-3 is amended by revising paragraph (e)
to read as follows:
Sec. 25.2522(c)-3 Transfers not exclusively for charitable, etc.,
purposes in the case of gifts made after July 31, 1969.
* * * * *
(e) [The text of this proposed paragraph (e) is the same as the
text of Sec. 25.2522(c)-3T(e) published elsewhere in this issue of the
Federal Register].
Par. 15. Section 25.7520-1 is amended by revising paragraphs
(a)(1), (a)(2), (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.
(a) * * * (1) [The text of this proposed paragraph (a)(1) is the
same as the text of Sec. 25.7520-1T(a)(1) published elsewhere in this
issue of the Federal Register].
(2) [The text of this proposed paragraph (a)(2) is the same as the
text of Sec. 25.7520-1T(a)(2) published elsewhere in this issue of the
Federal Register].
(3) * * *
(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].
Par. 16. Section 25.7520-3 is amended as follows:
1. In paragraph (b)(2)(v), Example 5 is revised.
2. Paragraph (b)(4) is revised.
3. Paragraph (c) is revised.
The revised text reads as follows:
Sec. 25.7520-3 Limitation on the application of section 7520.
* * * * *
(b) * * *
(2) * * *
(v) * * *
Example 5. [The text of this proposed paragraph (b)(2)(v),
Example 5 is the same as the text of Sec. 25.7520-3T(b)(2)(v),
Example 5, published elsewhere in this issue of the Federal
Register].
* * * * *
(b)(4) [The text of this proposed paragraph (b)(4) is the same as
the text of Sec. 25.7520-3T(b)(4) published elsewhere in this issue of
the Federal Register].
* * * * *
(c) [The text of this proposed paragraph (c) is the same as the
text of Sec. 25.7520-3T(c) published elsewhere in this issue of the
Federal Register].
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E9-10110 Filed 5-1-09; 4:15 pm]
BILLING CODE 4830-01-P