AICPA Comments on Proposed Regs on Affect of Post-Death Events on Estate Valuation

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AICPA Comments on Proposed Regs on Affect of Post-Death Events on Estate Valuation




Mr. Kevin Brown Acting Commissioner Internal Revenue Service 1111 Constitution Avenue, N.W. Washington, D.C. 20224 Mr. Donald Korb Chief Counsel Internal Revenue Service 1111 Constitution Avenue, N.W. Washington, D.C. 20224 Mr. William P. O’Shea Associate Chief Counsel for Passthroughs and Special Industries Internal Revenue Service 1111 Constitution Avenue, N.W. Washington, D.C. 20224 HAND DELIVERED: Courier’s Desk, CC:PA:LPD:PR (REG-143316-03) RE: Proposed Regulations (REG-143316-03, 2007-2 IRB 1292) Regarding How Post-Death Events May Be Considered in Determining the Value of a Taxable Estate Dear Mr. Brown, Mr. Korb, and Mr. O’Shea: The American Institute of Certified Public Accountants (AICPA) is submitting comments on proposed regulations relating to the amount deductible from a decedent’s gross estate for claims against the estate under Internal Revenue Code (IRC) section 2053(a)(3). The proposed regulations will affect estates of decedents against whom there are claims outstanding at the time of their deaths. We are concerned that the proposed regulations will not accomplish their goal of reducing costs for both the estate and the IRS in administering IRC section 2053. Instead, this approach would: (1) create a series of traps for unwary executors and tax preparers; and (2) lead to the equally inefficient situation where an estate must be held open for a number of years to determine the amount of the deduction for a contingent obligation. Heirs and executors need closure and would possibly incur many additional costs and burdens in filing annual refund claims every year for 25 or more years under certain circumstances. Additionally, the potential proliferation of petitions under IRC section 2204 certainly could increase the administrative burden for the government, as well. The AICPA is the national professional organization of certified public accountants comprised of approximately 330,000 members. Our members advise clients on federal, state and international tax matters, and prepare income and other tax returns for millions of Americans. Our members provide services to individuals, not-for-profit organizations, small and medium-sized business, as well as America’s largest businesses. * * * * * We thank you for the opportunity to present our comments and welcome the opportunity to discuss our comments further with you or others at the IRS. Please feel free to contact me at jeffrey.hoops@ey.com; Steven A. Thorne, Chair of the AICPA Trust, Estate, and Gift Tax Technical Resource Panel, at stethorne@deloitte.com; or Eileen R. Sherr, AICPA Technical Manager, at esherr@aicpa.org to discuss the above comments or if you require any additional information. Sincerely, Jeffrey R. Hoops Chair, AICPA Tax Executive Committee Download comments




Copyright © 2007 by the American Institute of Certified Public Accountants, Inc., New York, New York.