• Treasury publishes 2002-2023 Priority Guidance Plan—The Internal Revenue Service has published its priority guidance plan for next year, highlighting issues that are a priority for the Treasury department. For estate planners, the following topics are of interest:
- Retirement plans: Final regulations (final regs) for the changes to retirement plan administration under Internal Revenue Code Section 401(a)(9) and the Setting Every Community Up for Retirement Enhancement Act (known as the “SECURE” Act)
- Tax-exempt organizations: Final regs for IRC Section 509(a)(3) supporting organizations and guidance under IRC Section 4941 regarding private foundations’ investments in partnerships with disqualified persons
- Relief for late regulatory elections: Guidance under Treasury Regulations Section 301.9100 for relief for late regulatory elections
- Income tax basis:
- Final regs under IRC Sections 1014(f) and 6035 regarding consistency of basis in the estate and beneficiaries acquiring property from the estate
- New: IRC Section 1014 basis adjustments at death of owner of a grantor trust if assets aren’t included in the grantor’s taxable estate
- Portability: Guidance on portability regs, published in IRB 2022-30, Revenue Procedure 2022-32
- Gift valuation:
- Valuation of gifts that are includible in the gross estate when the basic exclusion amount at the time of the gift is greater than at the transferor’s death under the special rule of Treas. Regs. Section 2010-1(c)
- Regs under IRC Section 7520 for use of actuarial tables to value annuities, life estates, terms, remainder and reversions
- Alternate valuation: Regs on restrictions imposed on estate assets during the alternate valuation period
- Deductions: Final regs regarding interest expense and personal guarantees under IRC Section 2053
- International issues:
- Qualified domestic trust (QDOT): Updates to the QDOT regs
- Final regs under IRC Section 2801 on taxes on gifts or bequests from certain expatriates
- Generation-skipping transfers (GSTs):
- Regs under IRC Section 2632 on late allocation of GST tax exemption on transfers under Section 2642(g)
- Defining a GST trust
- Ordering rules when the amount of GST tax exemption allocated exceeds the transferor’s available exemption
- Final regs for extensions of time to allocate GST tax exemption under Section 2642(g)
