[EstGift] Call to Arms--Comment Projects for IRS Priority Guidance Plan and Basis Reporting Rules

[Mickey Davis]

I'm calling on you to join a taskforce to give input on possible IRS regulations or other guidance in three areas.  Specifically, we're forming groups to provide comments on: (1) valuation of promissory notes for transfer tax purposes under §§ 2031, 2033, 2512, and 7872; (2) the gift tax effect of defined value formula clauses under §§ 2512 and 2511; and (3) the new basis reporting requirements under §§ 1014(f) and 6035.  Here's the background:

Among the 277 projects on the Department of the Treasury 2015-2016 Priority Guidance Plan are 12 projects described as relating to Gifts and Estates and Trusts. Four of these projects are new.  In Notice 2015-27, the IRS solicited suggestions from all interested parties, including taxpayers, tax practitioners, and industry groups., recognizing "the importance of public input to formulate a Priority Guidance Plan that focuses resources on guidance items that are most important to taxpayers and tax administration."

The ACTEC Washington Affairs Committee has asked that committee members help prepare comments for four projects on the priority guidance plan, namely:


1.       Guidance on qualified contingencies of charitable remainder annuity trusts under § 664.

2.       Guidance on the valuation of promissory notes for transfer tax purposes under §§ 2031, 2033, 2512, and 7872.

3.       Guidance on the gift tax effect of defined value formula clauses under §§ 2512 and 2511.

4.       Guidance on basis of grantor trust assets at death under § 1014.
In addition, in IRS Notice 2015-57, the IRS solicited comments on the new basis reporting requirements under §§ 1014(f) and 6035, about which the Washington Affairs Committee would also like to have comments.  The time frame on this project is especially short, since initial reports are due on February 29, 2016.

The Charitable Planning and Exempt Organizations Committee (Chair Eric Dryburgh, dryburgh at adlercolvin.com<mailto:dryburgh at adlercolvin.com>) is taking the lead on the first item. I view items 2 and 3 as in our bailiwick, with assistance from members of the Business Planning Committee (Chair Ann Burns, Ann.Burns at gpmlaw.com<mailto:Ann.Burns at gpmlaw.com>). Item 4 falls within the ambit of the Fiduciary Income Tax Committee (Chair Janet Montgomery, JRM at dbmtaxlaw.com<mailto:JRM at dbmtaxlaw.com>).  The basis reporting rules are also likely an FIT project, but since they apply only to taxable estates and require coordination with estate tax reporting, I'm sure our input would be welcomed.

Here is an opportunity for you to make a difference for your clients and the profession by providing input on where these issues go.  Please step forward to help with at least one of these projects.  Let me know ASAP on which of these issues you would like to work.  If the charitable or income tax projects are more to your liking, please contact the committee chairs listed above, or let me know and I will put you in touch with the right people.

Thanks!!

Mickey
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