IRS, Treasury Issue Proposed Estate-Tax Rules

The Treasury Department and Internal Revenue Service (IRS) issued guidance addressing the requirements for a "qualified severance" of a trust for purposes of the generation-skipping transfer (GST) tax.

"We are pleased to be able to provide guidance in this complex area of the law," stated Acting Assistant Secretary for Tax Policy Greg Jenner. "This guidance should enable taxpayers to achieve the most efficient and effective use of their GST exemptions consistent with the law."

The proposed regulations implement recent statutory changes that expanded the availability of a qualified severance. The proposed regulations provide guidance concerning the proper procedure, permissible timing, and required reporting of a qualified severance, and the permitted methods of funding the resulting trusts.

You can review the entire report Qualified Severance of a Trust for Generation-Skipping Transfer (GST) Tax Purposes regulations here.

You may like these other stories...

Could the IRS disallow Ice Bucket Challenge charitable contributions?Unless you’ve been living under a rock, you’ve probably heard of – or participated in – the ALS Ice Bucket Challenge.I was...
As a general rule, a taxpayer can deduct the full amount of monetary contributions made to a qualified charitable organization, as long as certain substantiation requirements are met. These donations are typically made...
Hertz withdraws full-year forecast, cites accounting review, challengesRental car company Hertz Global Holdings Inc. said on Tuesday it is withdrawing its full-year financial forecast and expects 2014 results to be “...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.