81 FR 38637 - Consistent Basis Reporting Between Estate and Person Acquiring Property From Decedent; Hearing

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 114 (June 14, 2016)

Page Range		38637-38638
FR Document		2016-14010

This document provides notice of public hearing on the proposed regulations that provide guidance regarding the requirement that a recipient's basis in certain property acquired from a decedent be consistent with the value of the property as finally determined for Federal estate tax purposes.

Federal Register, Volume 81 Issue 114 (Tuesday, June 14, 2016)

[Federal Register Volume 81, Number 114 (Tuesday, June 14, 2016)]
[Proposed Rules]
[Pages 38637-38638]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14010]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 301

[REG-127923-15]
RIN 1545-BM97


Consistent Basis Reporting Between Estate and Person Acquiring 
Property From Decedent; Hearing

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of public hearing on proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This document provides notice of public hearing on the 
proposed regulations that provide guidance regarding the requirement 
that a recipient's basis in certain property acquired from a decedent 
be consistent with the value of the property as finally

[[Page 38638]]

determined for Federal estate tax purposes.

DATES: The public hearing is being held on Monday, June 27, 2016 at 
10:00 a.m. The IRS must receive outlines of the topics to be discussed 
at the public hearing by Monday, June 20, 2016.

ADDRESSES: The public hearing is being held in the IRS Auditorium, 
Internal Revenue Service Building, 1111 Constitution Avenue NW., 
Washington, DC 20224. Due to building security procedures, visitors 
must enter at the Constitution Avenue entrance. In addition, all 
visitors must present photo identification to enter the building.
    Send Submissions to CC:PA:LPD:PR (REG-127923-15), Room 5205, 
Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand-delivered Monday through 
Friday to CC:PA:LPD:PR (REG-127923-15), Couriers Desk, Internal Revenue 
Service, 1111 Constitution Avenue NW., Washington, DC 20224 or sent 
electronically via the Federal eRulemaking Portal at 
www.regulations.gov (IRS-2016-0010).

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Theresa M. 
Melchiorre at (202) 317-6859; concerning submissions of comments, the 
hearing and/or to be placed on the building access list to attend the 
hearing Regina Johnson at (202) 317-6901 (not toll-free numbers).

SUPPLEMENTARY INFORMATION: The subject of the public hearing is the 
notice of proposed rulemaking (REG-127923-15) that was published in the 
Federal Register on Friday, March 4, 2016 (81 FR 11486).
    The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who 
wish to present oral comments at the hearing that submitted written 
comments by June 20, 2016 must submit an outline of the topics to be 
addressed and the amount of time to be devoted to each topic by Monday, 
June 20, 2016.
    A period of 10 minutes is allotted to each person for presenting 
oral comments. After the deadline for receiving outlines has passed, 
the IRS will prepare an agenda containing the schedule of speakers. 
Copies of the agenda will be made available, free of charge, at the 
hearing or in the Freedom of Information Reading Room (FOIA RR) (Room 
1621) which is located at the 11th and Pennsylvania Avenue NW., 
entrance, 1111 Constitution Avenue NW., Washington, DC 20224.
    Because of access restrictions, the IRS will not admit visitors 
beyond the immediate entrance area more than 30 minutes before the 
hearing starts. For information about having your name placed on the 
building access list to attend the hearing, see the FOR FURTHER 
INFORMATION CONTACT section of this document.

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2016-14010 Filed 6-13-16; 8:45 am]
 BILLING CODE 4830-01-P

Federal Register / Vol. 81, No. 114 / Tuesday, June 14, 2016 / Proposed Rules 38637

Question 33. How should the CA reflect major country that imposes bank capital significantly engaged in insurance
off-balance-sheet exposures? requirements on insurance firms. activities.
Question 34. Under what circumstances The Board also reviewed an approach
should U.S. GAAP be used or adjusted to Question 38. Should the Board reevaluate
that entirely excluded insurance any of these approaches? What additional
determine the exposure amount of insurance subsidiaries and applied capital
liabilities under the CA? consideration, if any, should the Board give
requirements only to the non-insurance to any of the regulatory capital approaches
Factors. The CA would involve a set parts of the supervised firm. This discussed above?
of Board-determined factors to be approach would, by definition, not
applied to the exposure amounts of capture all the material risks of the III. Conclusion
assets, insurance liabilities, and off- organization. While section 171 of the The Board is seeking information on
balance-sheet items in each risk Dodd-Frank Act, as amended, permits all aspects of its approaches to
segment. The factor for each risk the Board to exclude state and foreign insurance regulatory capital and invites
segment would reflect the riskiness of regulated insurance entities in comment on the appropriate
the segment and the capital required to establishing minimum consolidated consolidated capital requirements for
support that risk. Because of the leverage and risk-based capital systemically important insurance
different liability structures between requirements, the parent holding companies and insurance depository
insurance companies and banks, some company should be a source of capital institution holding companies. In
of the applicable insurance risk factors strength to the entire entity, including to addition, the Board invites comment on
may differ from the analogous risk the subsidiary insurance companies and all of the questions set forth in this
factors that apply to banks. IDIs. To do this effectively, a ANPR, as well as other issues that
Question 35. What considerations should consolidated capital requirement must commenters may wish to raise.
the Board apply in determining the various take into account the risks within the In connection with this ANPR, the
factors to be applied to the amounts in the consolidated organization, including Board will review all comments
risk segments in the CA? insurance risks.
Question 36. What challenges are there in
submitted and supplementary
A capital approach based on the
determining risk factors for global risks? information provided, as well as
European Solvency II framework was
information regarding insurance
Minimum ratio. The CA would considered, but would not appear to be
regulatory capital derived from the
require the establishment of a minimum appropriate for systemically important
Board’s regulatory and supervisory
ratio of consolidated qualifying capital insurance companies and insurance
activities. Once the Board has
to consolidated factor-weighted depository institution holding
completed its review, the Board
exposures in the CA. In addition, one or companies in the United States.20 Use of
anticipates that it will issue a notice of
more definitions of capital adequacy a Solvency II-based capital framework
proposed rulemaking to establish a
(e.g., ‘‘well capitalized’’ or ‘‘adequately would not adequately account for U.S.
regulatory capital framework for
capitalized’’) would be needed for early GAAP and may introduce excessive
supervised institutions significantly
remediation and other supervisory volatility due to discount rate
engaged in insurance activities.
purposes. assumptions. Moreover, use of a
Question 37. What criteria should the Solvency II-based approach would By order of the Board of Governors of the
Board consider in developing the minimum involve excessive reliance on internal Federal Reserve System, June 9, 2016.
capital ratio under the CA and definitions of models. Internal models make cross- Robert deV. Frierson,
a ‘‘well-capitalized’’ or ‘‘adequately firm comparisons difficult and can lack Secretary of the Board.
capitalized’’ insurance institution? transparency to supervisors and market [FR Doc. 2016–14004 Filed 6–13–16; 8:45 am]
C. Other Assessed Frameworks participants. Additionally, such an BILLING CODE 6210–01–P
approach would not be executable in
In developing the two general
the short-to-medium term; the notable
approaches discussed here, the Board
challenges of the Solvency II regime DEPARTMENT OF THE TREASURY
considered a number of other potential
have resulted in significantly extended
regulatory capital frameworks that did
implementation periods in various Internal Revenue Service
not appear to meet the Board’s
European jurisdictions.
supervisory objectives for supervised The Board also analyzed a potential
institutions significantly engaged in 26 CFR Parts 1 and 301
regulatory capital framework for
insurance activities. For example, supervised institutions significantly [REG–127923–15]
consideration was given to applying a engaged in insurance activities that is
risk-based capital rule that is based RIN 1545–BM97
based on internal stress testing. This
solely on the Board’s existing capital approach would rely on internal Consistent Basis Reporting Between
requirements for banking organizations models, be highly novel and complex, Estate and Person Acquiring Property
(Regulation Q) to supervised institutions would entail a large and lengthy From Decedent; Hearing
significantly engaged in insurance construction project, and would require
activities. Such an approach would not a substantial dedication of supervisory AGENCY: Internal Revenue Service (IRS),
recognize the unique risks, regulation, resources to superintend. The Board Treasury.
and balance sheet composition of intends to continue exploration of ACTION: Notice of public hearing on
insurance firms. Although bank-like proposed rulemaking.
sradovich on DSK3TPTVN1PROD with PROPOSALS

internal stress testing as it builds its
capital requirements may be appropriate supervisory stress testing program for
for exposures that a supervised systemically important insurance SUMMARY: This document provides
institution significantly engaged in companies and its broader supervision notice of public hearing on the proposed
insurance activities holds in a non- program for supervised institutions regulations that provide guidance
insurance subsidiary, an approach based regarding the requirement that a
solely on the Board’s Regulation Q 20 See Council Directive 2009/138, On the Taking- recipient’s basis in certain property
would not capture significant insurance Up and Pursuit of the Buisness of Insurance and acquired from a decedent be consistent
risks. The Board is not aware of any Reinsurance (Solvency II), 2009 O.J. (L 335) 1 (EC). with the value of the property as finally

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38638 Federal Register / Vol. 81, No. 114 / Tuesday, June 14, 2016 / Proposed Rules

determined for Federal estate tax information about having your name DHS Department of Homeland Security
purposes. placed on the building access list to FR Federal Register
attend the hearing, see the FOR FURTHER NPRM Notice of proposed rulemaking
DATES: The public hearing is being held § Section
on Monday, June 27, 2016 at 10:00 a.m. INFORMATION CONTACT section of this
U.S.C. United States Code
The IRS must receive outlines of the document.
topics to be discussed at the public Martin V. Franks, II. Background, Purpose, and Legal
hearing by Monday, June 20, 2016. Chief, Publications and Regulations Branch, Basis
ADDRESSES: The public hearing is being Legal Processing Division, Associate Chief On March 10, 2016, The Patriots Point
held in the IRS Auditorium, Internal Counsel (Procedure and Administration). Maritime Museum notified the Coast
Revenue Service Building, 1111 [FR Doc. 2016–14010 Filed 6–13–16; 8:45 am] Guard that it will be conducting a
Constitution Avenue NW., Washington, BILLING CODE 4830–01–P fireworks display from 9 p.m. to 9:30
DC 20224. Due to building security p.m. on July 4, 2016. The fireworks are
procedures, visitors must enter at the to be launched from a barge along the
Constitution Avenue entrance. In bank of the Cooper River at Patriots
DEPARTMENT OF HOMELAND
addition, all visitors must present photo Point in Charleston, SC. Hazards from
SECURITY
identification to enter the building. firework displays include accidental
Send Submissions to CC:PA:LPD:PR Coast Guard discharge of fireworks, dangerous
(REG–127923–15), Room 5205, Internal
projectiles, and falling hot embers or
Revenue Service, P.O. Box 7604, Ben 33 CFR Part 165 other debris. The Captain of the Port
Franklin Station, Washington, DC
Charleston (COTP) has determined that
20044. Submissions may be hand- [Docket Number USCG–2016–0224]
potential hazards associated with the
delivered Monday through Friday to
RIN 1625–AA00 fireworks to be used in this display
CC:PA:LPD:PR (REG–127923–15),
would be a safety concern for anyone
Couriers Desk, Internal Revenue Safety Zone; Fourth of July Fireworks within a 500-yard radius of the barge.
Service, 1111 Constitution Avenue NW., Patriots Point, Charleston, SC The purpose of this rulemaking is to
Washington, DC 20224 or sent
ensure the safety of vessels and the
electronically via the Federal AGENCY: Coast Guard, DHS.
navigable waters within a 500-yard
eRulemaking Portal at ACTION: Notice of proposed rulemaking. radius of the fireworks barge before,
www.regulations.gov (IRS–2016–0010).
SUMMARY: The Coast Guard proposes to during, and after the scheduled event.
FOR FURTHER INFORMATION CONTACT: The Coast Guard proposes this
Concerning the regulations, Theresa M. establish a temporary safety zone in the
navigable waters of Charleston, SC. This rulemaking under authority in 33 U.S.C.
Melchiorre at (202) 317–6859; 1231.
concerning submissions of comments, safety zone is necessary to protect the
the hearing and/or to be placed on the public from hazards associated with III. Discussion of Proposed Rule
building access list to attend the hearing launching fireworks over navigable The COTP proposes to establish a
Regina Johnson at (202) 317–6901 (not waters of the United States. This safety zone from 8:45 p.m. to 9:45 p.m.
toll-free numbers). proposed rulemaking would prohibit on July 4, 2016. The safety zone would
SUPPLEMENTARY INFORMATION: The persons and vessels from being in the cover all navigable waters within 500
subject of the public hearing is the safety zone unless authorized by the yards of the barge located at Patriots
notice of proposed rulemaking (REG– Captain of the Port Charleston or a Point on the Cooper River. The duration
127923–15) that was published in the designated representative. We invite of the zone is intended to ensure the
Federal Register on Friday, March 4, your comments on this proposed safety of vessels and these navigable
2016 (81 FR 11486). rulemaking. waters before, during, and after the
The rules of 26 CFR 601.601(a)(3) DATES: Comments and related material scheduled 9 p.m. to 9:30 p.m. fireworks
apply to the hearing. Persons who wish must be received by the Coast Guard on display. No vessel or person would be
to present oral comments at the hearing or before June 29, 2016. permitted to enter the safety zone
that submitted written comments by ADDRESSES: You may submit comments without obtaining permission from the
June 20, 2016 must submit an outline of identified by docket number USCG– COTP or a designated representative.
the topics to be addressed and the 2016–0224 using the Federal The regulatory text we are proposing
amount of time to be devoted to each eRulemaking Portal at http:// appears at the end of this document.
topic by Monday, June 20, 2016. www.regulations.gov. See the ‘‘Public
A period of 10 minutes is allotted to IV. Regulatory Analyses
Participation and Request for
each person for presenting oral Comments’’ portion of the We developed this proposed rule after
comments. After the deadline for SUPPLEMENTARY INFORMATION section for considering numerous statutes and
receiving outlines has passed, the IRS further instructions on submitting Executive orders related to rulemaking.
will prepare an agenda containing the comments. Below we summarize our analyses
schedule of speakers. Copies of the based on a number of these statutes and
agenda will be made available, free of FOR FURTHER INFORMATION CONTACT: If Executive orders and we discuss First
charge, at the hearing or in the Freedom you have questions about this proposed Amendment rights of protestors.
of Information Reading Room (FOIA RR) rulemaking, call or email Lieutenant
sradovich on DSK3TPTVN1PROD with PROPOSALS

(Room 1621) which is located at the John Downing, Sector Charleston Office A. Regulatory Planning and Review
11th and Pennsylvania Avenue NW., of Waterways Management, Coast Executive Orders 12866 and 13563
entrance, 1111 Constitution Avenue Guard; telephone (843) 740–3184, email direct agencies to assess the costs and
NW., Washington, DC 20224. John.Z.Downing@uscg.mil. benefits of available regulatory
Because of access restrictions, the IRS SUPPLEMENTARY INFORMATION: alternatives and, if regulation is
will not admit visitors beyond the necessary, to select regulatory
immediate entrance area more than 30 I. Table of Abbreviations approaches that maximize net benefits.
minutes before the hearing starts. For CFR Code of Federal Regulations Executive Order 13563 emphasizes the

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Document Created: 2016-06-14 02:58:24
Document Modified: 2016-06-14 02:58:24

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Notice of public hearing on proposed rulemaking.
Dates		The public hearing is being held on Monday, June 27, 2016 at 10:00 a.m. The IRS must receive outlines of the topics to be discussed at the public hearing by Monday, June 20, 2016.
Contact		Concerning the regulations, Theresa M. Melchiorre at (202) 317-6859; concerning submissions of comments, the hearing and/or to be placed on the building access list to attend the hearing Regina Johnson at (202) 317-6901 (not toll-free numbers).
FR Citation		81 FR 38637
RIN Number		1545-BM97
CFR Citation		26 CFR 1 26 CFR 301

81 FR 38637 - Consistent Basis Reporting Between Estate and Person Acquiring Property From Decedent; Hearing

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 81, Issue 114 (June 14, 2016)

DEPARTMENT OF THE TREASURY
Internal Revenue Service