81 FR 86953 - Consistent Basis Reporting Between Estate and Person Acquiring Property From Decedent
DEPARTMENT OF THE TREASURY
Internal Revenue Service Federal Register Volume 81, Issue 232 (December 2, 2016)
Internal Revenue Service
Federal Register Volume 81, Issue 232 (December 2, 2016)
| Page Range | 86953-86955 | |
| FR Document | 2016-28906 |
[Federal Register Volume 81, Number 232 (Friday, December 2, 2016)] [Rules and Regulations] [Pages 86953-86955] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-28906] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9797] RIN 1545-BM98 Consistent Basis Reporting Between Estate and Person Acquiring Property From Decedent AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Final regulations and removal of temporary regulations. ----------------------------------------------------------------------- SUMMARY: This document contains final regulations that provide transition rules providing that executors and other persons required to file or furnish a statement under section 6035(a)(1) or (2) regarding the value of property included in a decedent's gross estate for federal estate tax purposes before June 30, 2016, need not have done so until June 30, 2016. These final regulations are applicable to executors and other persons who file federal estate tax returns required by section 6018(a) or (b) after July 31, 2015. DATES: Effective Date. These regulations are effective on December 2, 2016. Applicability Dates: For date of applicability, see Sec. 1.6035- 2(b). FOR FURTHER INFORMATION CONTACT: Theresa Melchiorre (202) 317-6859 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background Section 6018(a) requires executors to file federal estate tax returns with [[Page 86954]] respect to (1) certain estates of citizens or residents of the United States and (2) certain estates of nonresidents that are not citizens of the United States. If an executor is unable to make a complete federal estate tax return as to any property that is a part of a decedent's gross estate, section 6018(b) requires every person or beneficiary holding such property, upon notice from the Secretary, to make a federal estate tax return as to such part of the gross estate. On July 31, 2015, the President of the United States signed into law H.R. 3236, The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, Public Law 114-41, 129 Stat. 443 (Act). Section 2004 of the Act added new section 6035. Section 6035 imposes reporting requirements with regard to the value of property included in a decedent's gross estate for federal estate tax purposes. Section 6035(a)(1) provides that the executor of any estate required to file a return under section 6018(a) must file with the Secretary and furnish to the person acquiring any interest in property included in the decedent's gross estate, a statement identifying the value of each interest in such property as reported on such return and such other information with respect to such interest as the Secretary may prescribe. Section 6035(a)(2) provides that each other person required to file a return under section 6018(b) must file with the Secretary and furnish to each person who holds a legal or beneficial interest in the property to which such return relates, a statement identifying the same information described in section 6035(a)(1). Section 6035(a)(3)(A) provides that each statement required to be filed or furnished under section 6035(a)(1) or (2) is to be filed or furnished at such time as the Secretary may prescribe, but in no case at a time later than the earlier of (i) the date that is 30 days after the date on which the return under section 6018 was required to be filed (including extensions actually granted, if any) or (ii) the date which is 30 days after the date such return is filed. On August 21, 2015, the Treasury Department and the IRS issued Notice 2015-57, 2015-36 IRB 294. That notice delayed until February 29, 2016, the due date for any statements required by section 6035. On February 11, 2016, the Treasury Department and the IRS issued Notice 2016-19, 2016-09 IRB 362. That notice provided that executors or other persons required to file or furnish a statement under section 6035(a)(1) or (2) before March 31, 2016, need not have done so until March 31, 2016. On March 4, 2016, the Treasury Department and the IRS published temporary regulations (TD 9757) in the Federal Register (81 FR 11431- 01) providing transition relief under Sec. 1.6035-2T. The temporary regulations extended the due date for statements required by section 6035 to March 31, 2016, as provided in Notice 2016-19. Also on March 4, 2016, the Treasury Department and the IRS published in the Federal Register (81 FR 11486-01) proposed regulations (REG-127923-15). The text of TD 9757 served as the text of the proposed regulations regarding the transition relief provided under Sec. 1.6035-2T. On March 23, 2016, the Treasury Department and the IRS issued Notice 2016-27, 2016-15 IRB 576. That notice provided that executors or other persons required to file or furnish a statement under section 6035(a)(1) or (2) before June 30, 2016, need not have done so until June 30, 2016. On June 27, 2016, the Treasury Department and the IRS held a public hearing on the proposed regulations. In addition to the comments received at the hearing, the Treasury Department and the IRS received numerous written comments. Both at the hearing and in written comments, commenters commented favorably on the transition relief providing extensions of time to file and furnish the statements required by section 6035(a)(1) or (2) that the Treasury Department and the IRS had granted in TD 9757 and the notices (including Notice 2016-27 issued after TD 9757 was published in the Federal Register). Explanation of Provisions These final regulations reiterate the statement in Notice 2016-27 and provide that executors or other persons required to file or furnish a statement under section 6035(a)(1) or (2) before June 30, 2016, need not have done so until June 30, 2016. These final regulations are issued within 18 months of the date of the enactment of the statutory provisions to which the final regulations relate and, as authorized by section 7805(b)(2), are applicable to executors and other persons who file a return required by section 6018(a) or (b) after July 31, 2015. Statement of Availability of IRS Documents IRS Revenue Procedures, Revenue Rulings, notices, and other guidance cited in this preamble are published in the Internal Revenue Bulletin (or Cumulative Bulletin) and are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, or by visiting the IRS Web site at http://www.irs.gov. Special Analyses Certain IRS regulations, including this one, are exempt from the requirements of Executive Order 12866, as supplemented and reaffirmed by Executive Order 13563. Therefore, a regulatory impact assessment is not required. In addition, section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) did not apply to TD 9757 because TD 9757 was excepted from the notice and comment requirements of section 553(b) and (c) of the Administrative Procedure Act under the interpretative rule and good cause exceptions provided by section 553(b)(3)(A) and (B). The Act included an immediate effective date, thus making the first required statements due 30 days after enactment. It was necessary to provide more time to provide the statements required by section 6035(a), to allow the Treasury Department and the IRS sufficient time to issue both substantive and procedural guidance on how to comply with the section 6035(a) requirement, and to provide executors and other affected persons the opportunity to review this guidance before preparing the required statements. TD 9757 reiterated the relief in Notice 2016-19 and, because of the immediate need to provide relief, notice and public comment pursuant to 5 U.S.C. 553(b) and (c) was impracticable, unnecessary, and contrary to the public interest. Public comment, however, was received on TD 9757 and all the notices, including Notice 2016-27, at the public hearing held on June 27, 2016, and in written comments submitted on the proposed regulations that cross-referenced and included the text of TD 9757. It has been certified that the collection of information in these final regulations will not have a significant economic impact on a substantial number of small entities. This certification is based on the fact that this rule primarily affects individuals (or their estates) and trusts, which are not small entities as defined by the Regulatory Flexibility Act (5 U.S.C. 601). Although it is anticipated that there may be an incremental economic impact on executors that are small entities, including entities that provide tax and legal services that assist individuals in preparing tax returns, any impact would not be significant and would not affect a substantial number of small entities. Therefore, a Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. [[Page 86955]] Pursuant to section 7805(f) of the Code, TD 9757 and notice of the proposed rulemaking that cross-referenced and included the text of TD 9757 was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business. No comments were received. Drafting Information The principal author of these final regulations is Theresa Melchiorre, Office of the Associate Chief Counsel (Passthroughs and Special Industries). Other personnel from the Treasury Department and the IRS participated in their development. List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. Amendments to the Regulations Accordingly, 26 CFR part 1 is amended as follows: PART 1--INCOME TAXES 0 Paragraph 1. The authority citation for part 1 is amended by adding an entry in numerical order to read in part as follows: Authority: 26 U.S.C. 7805 * * * * * * * * Section 1.6035-2 also issued under 26 U.S.C. 6035(b). * * * * * Sec. 1.6035-2T [Removed] 0 Par. 2. Section 1.6035-2T is removed. 0 Par. 3. Section 1.6035-2 is revised to read as follows: Sec. 1.6035-2 Transitional relief. (a) Statements due before June 30, 2016. Executors and other persons required to file or furnish a statement under section 6035(a)(1) or (2) after July 31, 2015 and before June 30, 2016, need not have done so until June 30, 2016. (b) Applicability Date. This section is applicable to executors and other persons who file a return required by section 6018(a) or (b) after July 31, 2015. John Dalrymple, Deputy Commissioner for Services and Enforcement. Approved: November 16, 2016. Mark J. Mazur, Assistant Secretary of the Treasury (Tax Policy). [FR Doc. 2016-28906 Filed 12-1-16; 8:45 am] BILLING CODE 4830-01-P
![Federal Register / Vol. 81, No. 232 / Friday, December 2, 2016 / Rules and Regulations 86953
except for repayments of project-specific participating jurisdiction may waive SUPPLEMENTARY INFORMATION: On June
community housing development repayment of the loans, consistent with 30, 2016, the Department published an
organization loans that are waived, in § 92.301, if applicable. interim final rule (81 FR 42478) to
accordance with §§ 92.301(a)(3) and (8) Technical assistance provider to adjust the level of civil monetary
(b)(3). In addition, any HOME funds develop the capacity of community penalties contained in Indian Affairs
used for costs that are not eligible under housing development organizations in regulations with an initial ‘‘catch-up’’
this part must be repaid by the the jurisdiction. The agreement must adjustment under the Federal Civil
participating jurisdiction, in accordance identify the specific nonprofit Penalties Inflation Adjustment Act
with paragraph (b)(3) of this section. organization(s) to receive capacity Improvements Act of 2015 and OMB
(3) HUD will instruct the participating building assistance. The agreement must guidance.
jurisdiction to either repay the funds to describe the amount and use (scope of The Department received no
the HOME Investment Trust Fund work) of the HOME funds, including a comments on the rule. Consequently,
Treasury account or the local account. If budget, a period of performance, and a the Department did not make any
the jurisdiction is not a participating schedule for completion. change to the interim final rule. For
jurisdiction at the time the repayment is * * * * * these reasons, the Department adopts
made, the funds must be remitted to the interim rule published June 30, 2016
HUD and reallocated, in accordance Dated: November 22, 2016. (81 FR 42478), as final without change.
with § 92.454. Harriet Tregoning,
Dated: November 18, 2016.
* * * * * Principal Deputy Assistant, Secretary for
Community Planning and Development. Lawrence S. Roberts,
(d) Commitment of funds in the local Principal Deputy Assistant Secretary—Indian
account. Beginning with the Fiscal Year Approved on November 2, 2016. Affairs.
2017 action plan, as provided in 24 CFR Nani A. Coloretti, [FR Doc. 2016–28750 Filed 12–1–16; 8:45 am]
91.220(l)(2) and 91.320(k)(2), program Deputy Secretary. BILLING CODE 4337–15–P
income, repayments, and recaptured [FR Doc. 2016–28591 Filed 12–1–16; 8:45 am]
funds in the participating jurisdiction’s
BILLING CODE 4210–67–P
HOME Investment Trust Fund local
account must be used in accordance DEPARTMENT OF THE TREASURY
with the requirements of this part, and Internal Revenue Service
the amount of program income, DEPARTMENT OF THE INTERIOR
repayments, and recaptured funds in the 26 CFR Part 1
participating jurisdiction’s HOME Bureau of Indian Affairs
Investment Trust Fund local account at [TD 9797]
the beginning of the program year must 25 CFR Parts 140, 141, 211, 213, 225,
226, 227, 243, and 249 RIN 1545–BM98
be committed before HOME funds in the
HOME Investment Trust Fund United [178A2100DD/AAKC001030/ Consistent Basis Reporting Between
States Treasury account, except for the A0A501010.999900 253G] Estate and Person Acquiring Property
HOME funds in the United States From Decedent
Treasury account that are required to be RIN 1076–AF32
reserved (i.e., 15 percent of the funds), AGENCY: Internal Revenue Service (IRS),
under § 92.300(a), for investment only Civil Penalties Inflation Adjustments Treasury.
in housing to be owned, developed, or ACTION: Final regulations and removal of
AGENCY: Bureau of Indian Affairs,
sponsored by community housing Interior. temporary regulations.
development organizations. The ACTION: Final rule. SUMMARY: This document contains final
deadline for committing program regulations that provide transition rules
income, repayments, and recaptured SUMMARY: The Bureau of Indian Affairs providing that executors and other
funds received during a program year is (BIA) is adopting as final the interim persons required to file or furnish a
the date of the participating final rule published on June 30, 2016, statement under section 6035(a)(1) or (2)
jurisdiction’s commitment deadline for adjusting the level of civil monetary regarding the value of property included
the subsequent year’s grant allocation. penalties contained in Indian Affairs in a decedent’s gross estate for federal
■ 10. Add § 92.504(c)(7) and (8) to read regulations with an initial ‘‘catch-up’’ estate tax purposes before June 30, 2016,
as follows: adjustment under the Federal Civil need not have done so until June 30,
Penalties Inflation Adjustment Act 2016. These final regulations are
§ 92.504 Participating jurisdiction
Improvements Act of 2015 and Office of applicable to executors and other
responsibilities; written agreements; on-site
inspection. Management and Budget (OMB) persons who file federal estate tax
guidance. The Department of the returns required by section 6018(a) or
* * * * * Interior (Department) did not receive
(c) * * * (b) after July 31, 2015.
(7) Community housing development any significant adverse comments DATES: Effective Date. These regulations
organization receiving assistance for during the public comment period on are effective on December 2, 2016.
project-specific technical assistance and the interim final rule, and therefore Applicability Dates: For date of
site control loans or project-specific adopts the rule as final without change. applicability, see § 1.6035–2(b).
seed money loans. The agreement must DATES: Effective date: December 2, 2016. FOR FURTHER INFORMATION CONTACT:
jstallworth on DSK7TPTVN1PROD with RULES
identify the specific site or sites and FOR FURTHER INFORMATION CONTACT: Theresa Melchiorre (202) 317–6859 (not
describe the amount and use of the Elizabeth Appel, Director, Office of a toll-free number).
HOME funds (in accordance with Regulatory Affairs and Collaborative SUPPLEMENTARY INFORMATION:
§ 92.301), including a budget for work, Action, Office of the Assistant
a period of performance, and a schedule Secretary—Indian Affairs; telephone Background
for completion. The agreement must (202) 273–4680, elizabeth.appel@ Section 6018(a) requires executors to
also set forth the basis upon which the bia.gov. file federal estate tax returns with
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![Federal Register / Vol. 81, No. 232 / Friday, December 2, 2016 / Rules and Regulations 86955
Pursuant to section 7805(f) of the DEPARTMENT OF THE TREASURY The notice of proposed rulemaking
Code, TD 9757 and notice of the proposed to increase the user fees under
proposed rulemaking that cross- Internal Revenue Service § 300.1 for entering into an installment
referenced and included the text of TD agreement from $120 to $225 and for
9757 was submitted to the Chief 26 CFR Part 300 entering into a direct debit installment
Counsel for Advocacy of the Small [TD 9798] agreement from $52 to $107. The notice
Business Administration for comment of proposed rulemaking proposed to
on its impact on small business. No RIN 1545–BN37 increase the user fee under § 300.2 for
comments were received. restructuring or reinstating an
User Fees for Installment Agreements installment agreement from $50 to $89.
Drafting Information The notice of proposed rulemaking
AGENCY: Internal Revenue Service (IRS),
The principal author of these final Treasury. proposed the introduction of two new
regulations is Theresa Melchiorre, ACTION: Final regulations.
types of online installment agreements
Office of the Associate Chief Counsel under § 300.1, each subject to a separate
(Passthroughs and Special Industries). SUMMARY: This document contains final user fee: (1) An online payment
Other personnel from the Treasury regulations that provide user fees for agreement with a fee of $149 and (2) a
Department and the IRS participated in installment agreements. The final direct debit online payment agreement
regulations affect taxpayers who wish to with a fee of $31. Under the notice of
their development.
pay their liabilities through installment proposed rulemaking, the user fee for
List of Subjects in 26 CFR Part 1 agreements. low-income taxpayers, as defined in
DATES: Effective date: These regulations § 300.1(b)(3), would continue to be $43
Income taxes, Reporting and for entering into a new installment
are effective on December 2, 2016.
recordkeeping requirements. agreement, except that the lower fee of
Applicability date: These regulations
Amendments to the Regulations apply to installment agreements entered $31 for a direct debit online payment
into, restructured, or reinstated on or agreement would apply to all taxpayers.
Accordingly, 26 CFR part 1 is after January 1, 2017. Under § 300.2(b), the fee for low-income
amended as follows: taxpayers restructuring or reinstating an
FOR FURTHER INFORMATION CONTACT:
installment agreement would be
Concerning the regulations, Maria Del
PART 1—INCOME TAXES reduced to $43 from $50. The new user
Pilar Austin at (202) 317–5437;
fee rates were proposed to be effective
concerning cost methodology, Eva
■ Paragraph 1. The authority citation beginning on January 1, 2017. As
Williams, at (202) 803–9728 (not toll-
for part 1 is amended by adding an entry explained in the notice of proposed
free numbers).
in numerical order to read in part as rulemaking, the proposed fees bring
SUPPLEMENTARY INFORMATION: user fee rates for installment agreements
follows:
Background and Explanation of in line with the full cost to the IRS of
Authority: 26 U.S.C. 7805 * * *
Provisions providing these taxpayer-specific
* * * * * services. In particular, the new user fee
Section 1.6035–2 also issued under 26 This document contains amendments structure offers taxpayers more tailored
U.S.C. 6035(b). to the User Fee Regulations under 26 installment agreement options,
* * * * * CFR part 300. On August 22, 2016, the including a $31 user fee for direct debit
Treasury Department and the IRS online payment agreements, which
§ 1.6035–2T [Removed] published in the Federal Register (81 ensures that taxpayers are not charged
FR 56550) a notice of proposed more for their chosen installment
■ Par. 2. Section 1.6035–2T is removed. rulemaking (REG–108792–16) relating to agreement option than the actual cost
■ Par. 3. Section 1.6035–2 is revised to the user fees charged for entering into incurred by the IRS in providing the
read as follows: and reinstating and restructuring type of installment agreement selected
installment agreements. The by taxpayers. Because OMB has granted
§ 1.6035–2 Transitional relief. Independent Offices Appropriations Act an exception to the full cost requirement
of 1952 (IOAA), which is codified at 31 for low-income taxpayers, low-income
(a) Statements due before June 30,
U.S.C. 9701, authorizes agencies to taxpayers would continue to pay the
2016. Executors and other persons
prescribe regulations establishing user reduced fee of $43 for any new
required to file or furnish a statement
fees for services provided by the agency. installment agreement, except where
under section 6035(a)(1) or (2) after July
Regulations prescribing user fees are they request a $31 direct debit online
31, 2015 and before June 30, 2016, need
subject to the policies of the President, payment agreement, and would pay the
not have done so until June 30, 2016.
which are currently set forth in the reduced $43 fee for restructuring or
(b) Applicability Date. This section is Office of Management and Budget reinstating an installment agreement.
applicable to executors and other Circular A–25 (the OMB Circular), 58 No public hearing on the notice of
persons who file a return required by FR 38142 (July 15, 1993). The OMB proposed rulemaking was held because
section 6018(a) or (b) after July 31, 2015. Circular allows agencies to impose user one was not requested. Five comments
John Dalrymple, fees for services that confer a special were received. After careful
benefit to identifiable recipients beyond consideration of the comments, this
Deputy Commissioner for Services and
Enforcement.
those accruing to the general public. Treasury Decision adopts the proposed
jstallworth on DSK7TPTVN1PROD with RULES
The agency must calculate the full cost regulations without change.
Approved: November 16, 2016.
of providing those benefits, and, in
Mark J. Mazur, general, the amount of a user fee should Summary of Comments
Assistant Secretary of the Treasury (Tax recover the full cost of providing the The first comment suggested that
Policy). service, unless the Office of filing a tax return and requesting an
[FR Doc. 2016–28906 Filed 12–1–16; 8:45 am] Management and Budget (OMB) grants installment agreement should not be a
BILLING CODE 4830–01–P an exception under the OMB Circular. two-step process and that taxpayers
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Document Created: 2018-02-14 09:01:56
Document Modified: 2018-02-14 09:01:56
| 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 | Rules and Regulations | |
| Action | Final regulations and removal of temporary regulations. | |
| Dates | Effective Date. These regulations are effective on December 2, 2016. | |
| Contact | Theresa Melchiorre (202) 317-6859 (not a toll-free number). | |
| FR Citation | 81 FR 86953 | |
| RIN Number | 1545-BM98 | |
| CFR Associated | Income Taxes and Reporting and Recordkeeping Requirements |
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