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Part III - Administrative, Procedural, and Miscellaneous
Method for Making Election to Apply Carryover Basis Treatment under Section 1022 to
the Estates of Decedents who Died in 2010 and Rules Applicable to Inter Vivos and
Testamentary Generation-Skipping Transfers in 2010
Notice 2011-66
PURPOSE
This notice provides guidance with regard to the time and manner in which the
executor of the estate of a decedent who died in 2010 elects, pursuant to section 301(c)
of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of
2010, P.L. 111-312 (124 Stat. 3296) (TRUIRJCA), to have the estate tax not apply and
to have the carryover basis rules in section 1022 apply to property transferred as a
result of the decedent’s death. This notice also addresses how a donor may elect out of
the automatic allocation of generation-skipping transfer (GST) tax exemption to direct
skips occurring during 2010. It also clarifies the due dates for returns for the taxable
year ending December 31, 2010, that report a generation-skipping transfer, that allocate
GST exemption, or that opt out of the automatic allocation of GST exemption. In
addition, the notice discusses the application of chapter 13 (the GST tax) to
testamentary transfers during 2010. Finally, this notice addresses certain other
collateral issues arising from the determination of basis under section 1022.
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This notice applies to executors of the estates of decedents who died in 2010
and to recipients of property acquired from such decedents (within the meaning of
section 1022(e)) (hereinafter, acquired from the decedent), if the executors make the
election under section 301(c) of TRUIRJCA. This notice also applies to donors who
made a gift during 2010 that is a generation-skipping transfer or an indirect gift for
purposes of the GST tax. See Revenue Procedure 2011-41 for a safe harbor with
regard to the interpretation and application of section 1022.
BACKGROUND
Subtitle A of title V of the Economic Growth and Tax Relief Reconciliation Act of
2001, P.L. 107-16 (EGTRRA) enacted section 2210, which made chapter 11 (the estate
tax) inapplicable to the estate of any decedent who died in 2010 and chapter 13 (the
GST tax) inapplicable to generation-skipping transfers made in 2010. On
December 17, 2010, TRUIRJCA became law, and section 301(a) of TRUIRJCA
retroactively reinstated the estate and GST taxes. However, section 301(c) of
TRUIRJCA allows the executor of the estate of a decedent who died in 2010 to elect to
apply the Internal Revenue Code (IRC) as though section 301(a) of TRUIRJCA did not
apply with respect to chapter 11 and with respect to property acquired or passing from
the decedent (within the meaning of section 1014(b)). Thus, section 301(c) of
TRUIRJCA allows the executor of the estate of a decedent who died in 2010 to elect not
to have the provisions of chapter 11 apply to the decedent’s estate, but rather, to have
the provisions of section 1022 apply (Section 1022 Election).
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Even though an executor may elect out of the estate tax under TRUIRJCA, the
provisions of chapter 13 (GST tax) nonetheless continue to apply. Section 302(c) of
TRUIRJCA, however, provides that the applicable tax rate for each GST occurring
during 2010 is zero. Section 301(d)(2) provides that, in the case of any
generation-skipping transfer made after December 31, 2009, and before
December 17, 2010, the due date for filing a return required under section 2662 of the
IRC (including any election required to be made on such return) shall not be earlier than
September 17, 2011.
TRUIRJCA also retroactively repealed section 2511(c), which treated each
transfer in trust during 2010 as a gift unless the trust was treated as wholly owned by
the donor or the donor’s spouse. Because of this retroactive repeal, this section does
not apply even if a Section 1022 Election is made.
GUIDANCE
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Section 1022 Election and Filing Requirements.
A. Section 1022 Election.
The executor of the estate of a decedent who died in 2010 may make the Section
1022 Election by filing a Form 8939, Allocation of Increase in Basis for Property
Acquired From a Decedent, on or before November 15, 2011. Once made, the election
is irrevocable except as provided in section I.D.1 or D.2 of this notice. Prior filings
purporting to make the Section 1022 Election must be replaced with a timely filed Form
8939.
If, for the same decedent, the Internal Revenue Service (IRS) receives a Form
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8939 and either a Form 706, United States Estate (and Generation-Skipping Transfer)
Tax Return, or a Form 706-NA, United States Estate (and Generation-Skipping
Transfer) Tax Return Estate of Nonresident not a Citizen of the United States, the IRS
will issue a letter to each person who filed such a form. The letter will include the name
and address of each person who filed a Form 706 (or Form 706-NA) or a Form 8939
with respect to the decedent, and will explain that each of those persons must
collectively sign and file either a restated Form 706 (or Form 706-NA) or Form 8939 on
or before 90 days from the date the IRS mails such letters. If no restated Form 706 (or
Form 706-NA) or Form 8939, signed by each person who previously filed any such
form, is filed within that 90-day period, the IRS will determine whether the executor has
made a Section 1022 Election for the decedent’s estate or whether the decedent’s
estate is subject to chapter 11. In making this determination, the IRS will consider all
relevant facts and circumstances disclosed to the IRS, including without limitation the
relative total fair market values of the decedent’s property in the possession of the
executors and the nature and significance of the economic impact of the Section 1022
Election (or its loss) on the beneficial owners of the property held by each executor.
Some factors may be more relevant, and may be accorded more weight, than others for
any particular estate.
B. Method to Allocate Basis.
The executor must allocate Basis Increase, as defined in section 4.02 of
Revenue Procedure 2011-41, on a timely filed Form 8939. For purposes of this section,
references to the term “executor” shall be construed in accordance with section 2203 as
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if that section was applicable. Accordingly, if an executor has been appointed, has
qualified, and is acting for a decedent’s estate within the United States, the IRS
generally will only accept Forms 8939 filed by such executor.
If an executor has not been appointed, any person in actual or constructive
possession of property acquired from the decedent may file a Form 8939 for the
property he or she actually or constructively possesses. If the IRS receives multiple
Forms 8939 that collectively purport to allocate Basis Increase in an amount greater
than the amount of Basis Increase available to the estate, the IRS will issue a letter to
each person who filed such a form. The letter will include the name and address of
each other person who filed a Form 8939 with respect to the decedent, and will explain
that each of those persons must collectively sign and file a single, restated Form 8939
allocating available Basis Increase in order to make the Section 1022 Election. The
restated Form 8939 must be filed on or before 90 days from the date the IRS mails such
letters. If no restated Form 8939, signed by each such person who previously
submitted a Form 8939, is filed within that 90-day period, the IRS will allocate the
available Basis Increase as the IRS, in its discretion, may determine. In making this
determination and exercising its discretion, the IRS will consider all relevant facts and
circumstances disclosed to the IRS. That allocation might be made on a pro-rata basis,
based on the amount of unrecognized appreciation in the property owned by the
decedent (within the meaning of section 1022(d)) (hereinafter, owned by the decedent)
at death and acquired from the decedent that was reported on the timely filed Forms
8939, or in any other manner deemed appropriate for the particular decedent’s estate
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by the IRS in the exercise of its discretion.
The recipient’s basis in a particular property (including the amount of Basis
Increase allocated to that property) is subject to adjustment upon the examination by
the IRS of any tax return reporting a value dependent upon the property’s basis (for
example, the property’s depreciation, sale, or other disposition that triggers gain or loss
on the property, or otherwise).
C. Reporting Requirements.
If the executor makes the Section 1022 Election, the executor must report and
value on Form 8939 all property (excluding cash and property that constitutes the right
to receive an item of income in respect of a decedent under section 691 (IRD)) acquired
from the decedent. Section 6018(b)(1). In addition, the executor also must report all
appreciated property acquired from the decedent, valued as of the decedent’s date of
death, that was required to be included on the donor’s Form 709, United States Gift
(and Generation-Skipping Transfer) Tax Return, if such property was acquired by the
decedent by gift or by inter vivos transfer for less than adequate and full consideration in
money or money’s worth during the 3-year period ending on the date of the decedent’s
death. Section 6018(b)(2). This does not include property transferred to the decedent
by the decedent’s spouse, who had not acquired the property in whole or in part by gift
or by inter vivos transfer for less than adequate and full consideration in money or
money’s worth during that same 3-year period.
In the case of a deceased nonresident who is not a citizen of the United States,
the property to be reported is limited to tangible property situated in the United States
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that is acquired from the decedent and any other property acquired from the decedent
by a United States person. Section 6018 describes the information that must be
provided on Form 8939.
In addition to the information as provided in this paragraph C, the executor must
include with the Form 8939 any other information and supporting documentation as
identified in the instructions to the Form 8939 or in any Internal Revenue Bulletin (see
§ 601.601(d)(2)(ii)(b)).
Within 30 days after the executor files a timely filed Form 8939, the executor (or
each executor filing such a form) must provide a statement to each recipient acquiring
property reported on that form, setting forth the information required under section
6018(c), regardless of whether the executor allocates Basis Increase to such property
on the form. Section 6018(e). If an adjustment is made to the basis of property
reported on a Form 8939, the executor must provide updated statements to each
recipient of property affected by that adjustment within 30 days after making the
adjustment or receiving notice of the adjustment from the IRS, whichever is applicable.
D. Time for Filing Return.
1. In General.
Form 8939 is due November 15, 2011. A Form 8939 filed prior to that date may
be amended or revoked, but only on a subsequent Form 8939 filed on or before
November 15, 2011. The Form 8939 that is timely filed by an executor is the last Form
8939 filed by that executor on or before November 15, 2011. No executor’s Form 8939
will have any effect on any Form 8939 filed by a different executor. The IRS will not
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grant extensions of time to file a Form 8939 and will not accept a Form 8939 or an
amended Form 8939 filed after the due date, except as provided in section I.A or B (in
the event of conflicting filings) or in section I.D.2 (regarding relief provisions) of this
notice. Thus, a taxpayer may not file an estate tax return as well as a conditional Form
8939 that would take effect only if an estate tax audit results in an increase in the gross
estate above the applicable exclusion amount. Notwithstanding the previous
sentences, however, for persons qualifying under section 7508 or 7508A, the due date
for filing a Form 8939 is postponed as provided in those sections. Any executor filing a
Form 8939 after November 15, 2011, pursuant to section 7508 or 7508A should write
“Filed Pursuant to Section 7508” or "Filed Pursuant to Section 7508A", as applicable, on
the top of the form. The failure to write these notations at the top of the Form 8939,
however, does not adversely impact the extension granted under section 7508 or
7508A. Furthermore, for decedents qualifying for relief under section 692, an executor
must file a Form 8939 to make the Section 1022 Election.
2. Relief Provisions.
Four types of relief from the requirements of section I.D.1 of this notice are
available. First, an amended Form 8939 may be filed after the due date of that form for
the sole purpose of allocating Spousal Property Basis Increase, as that term is defined
in section 1022(c)(2) and section 4.02(3) of Revenue Procedure 2011-41, among the
property eligible to receive an allocation of that basis, provided that each of the two
following requirements is satisfied. The first requirement is that the Form 8939 must
have been timely filed and was complete when filed except for the allocation of the full
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amount of the Spousal Property Basis Increase to the eligible property reported on that
Form 8939. The second requirement is that each amended Form 8939 must be filed no
more than 90 days after the date of the distribution of the qualified spousal property to
which Spousal Property Basis Increase is allocated on that amended Form 8939.
Second, provided an executor timely filed a Form 8939, the executor may file an
amended Form 8939 under the provisions of § 301.9100-2(b) on or before
May 15, 2012, for any purpose except to make or revoke a Section 1022 Election. The
executor must write “Filed Pursuant to Section 301.9100-2” on the top of the amended
Form 8939.
Third, an executor may apply for relief to supplement a timely filed Form 8939
under § 301.9100-3. A request for relief to supplement a timely filed Form 8939 is
limited to an extension of time to allocate any Basis Increase that has not previously
been validly allocated, and such relief, if appropriate, will be granted only if: (1) after
filing the Form 8939, the executor discovers additional property to which remaining
Basis Increase could be allocated; and/or (2) the FMV of property reported on the Form
8939 is adjusted as the result of an IRS examination or inquiry. Relief will not be
granted to reduce an allocation of Basis Increase made on a timely filed Form 8939.
Fourth, an executor may apply for relief under § 301.9100-3 in the form of an
extension of the time in which to file the Form 8939 (thus, making the Section 1022
Election and the allocation of Basis Increase), which relief may be granted if the
requirements of § 301.9100-3 are satisfied. Taxpayers should be aware, however, that,
in this context, the amount of time that has elapsed since the decedent’s death may
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constitute a lack of reasonableness and good faith and/or prejudice to the interests of
the government (for example, the use of hindsight to achieve a more favorable tax result
and/or the lack of records available to establish what property was or was not owned by
the decedent at death), which would prevent the grant of the requested relief.
II
GST Tax in 2010.
A. With Respect to Decedents Who Died in 2010
The GST tax was retroactively reinstated by TRUIRJCA and applies to the
estates of all decedents who died after December 31, 2009, regardless of whether a
Section 1022 Election is made. The GST tax is computed by multiplying the taxable
amount by the applicable rate. Section 2602. Section 2641(a) defines the applicable
rate for this purpose as the maximum federal estate tax rate applicable to the estate of a
decedent dying at the time of the transfer, multiplied by the inclusion ratio with respect
to that transfer. Section 302(c) of TRUIRJCA provides that, for each GST occurring
during 2010, the applicable rate under section 2641(a) is zero. This provision is
interpreted to mean that the maximum federal estate tax rate for purposes of computing
the GST tax on such a transfer is deemed to be zero which, when multiplied by any
inclusion ratio, will result in an applicable rate of zero. As under the law applicable to
GSTs occurring prior to 2010, the only way to achieve a zero inclusion ratio for the
transfer is to make a timely allocation of GST exemption to the transfer.
If the executor of a decedent who died in 2010 makes the Section 1022 Election,
the executor allocates that decedent’s available GST exemption by attaching the
Schedule R of Form 8939 to the Form 8939 for that decedent’s estate. If the Form 8939
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is timely filed, this allocation will be considered a timely allocation of the decedent’s
GST exemption under section 2632.
B. Inter Vivos Direct Skips
In the case of inter vivos direct skips that occurred in 2010, if the donor wishes to
pay GST tax at the rate of zero percent and therefore does not wish to have any GST
exemption allocated to that transfer, the donor may elect out of the automatic allocation
of GST exemption to that direct skip in either of two ways. First, the donor affirmatively
may elect out of the automatic allocation by describing, on a timely filed Form 709, both
the transfer and the extent to which the automatic allocation is not to apply. See section
26.2632-1(b)(1)(i). Alternatively, that same regulation also provides that, “. . . a timelyfiled Form 709 accompanied by payment of the GST tax (as shown on the return with
respect to the direct skip) is sufficient to prevent an automatic allocation of GST
exemption with respect to the transferred property.” Because it is clear that a 2010
transfer not in trust to a skip person is a direct skip to which the donor would never want
to allocate GST exemption, the IRS will interpret the reporting of an inter vivos direct
skip not in trust occurring in 2010 on a timely filed Form 709 as constituting the payment
of tax (at the rate of zero percent) and therefore as an election out of the automatic
allocation of GST exemption to that direct skip. This interpretation also applies to a
direct skip not in trust occurring at the close of an estate tax inclusion period (ETIP) in
2010 other than by reason of the donor’s death. However, a donor may or may not
want to allocate GST exemption to a 2010 direct skip made to a trust. Therefore, this
interpretation will not apply to any transfer in trust that is a direct skip or that occurs at
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the end of an ETIP. In addition, because this interpretation only applies to inter vivos
direct skips, it will also not apply to any direct skip, or to the close of an ETIP, by reason
of the donor’s death. Section 26.2632-1(c)(4). The rules regarding the automatic
allocation of GST exemption will apply to transfers described in the preceding sentence
unless the transferor affirmatively elects to have those rules not apply.
C. Filing Deadlines
Section 2611(a) defines a GST transfer as a direct skip, a taxable distribution, or
a taxable termination. An indirect skip, as defined in section 2632(c)(3), is not a GST
transfer. Section 2631 provides that each individual is allowed a GST exemption
amount which may be allocated to any property with respect to which such individual is
the transferor. Under § 26.2632-1(b)(3) and (4), an election to treat a trust as a GST
trust or to allocate GST exemption to any inter vivos transfer other than a direct skip, is
made on a timely filed Form 709. Section 2632(b)(1) and (c)(1) provide that, if any
individual makes a direct or indirect skip during life, any unused portion of such
individual’s GST exemption shall be allocated to the property transferred to the extent
necessary to make the inclusion ratio for such property zero. Sections 2632(b)(3) and
(c)(5) and § 26.2632-1(b)(1)(i) and (b)(2)(ii) provide that an individual may prevent the
automatic allocation of GST exemption by so providing on a timely filed Form 709.
Section 301(d)(2) of TRUIRJCA extends the time for filing any return required
under section 2662 (including any election required to be made on such return) to report
a GST transfer made after December 31, 2009, and before December 17, 2010, to
September 17, 2011. Accordingly, the due date for filing a return reporting a direct skip,
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a taxable distribution, or a taxable termination (including any election required to be
made on such return) that occurred on or after January 1, 2010, through
December 16, 2010, is September 19, 2011, including extensions (because
September 17, 2011, falls on a Saturday), except in the case of a Schedule R attached
to Form 8939, which is due on or before November 15, 2011.
However, the language of Section 301(d)(2) of TRUIRJCA does not extend the
due date of all gift and GST returns for 2010. Specifically, to the extent a return relates
to an indirect skip, or to a post-December 16, 2010, direct skip, the due date of the
return is not extended. Thus, the due date for filing a Form 709 that does not report a
GST transfer or that reports a GST transfer (or any election pertaining to such transfer)
that occurs on or after December 17, 2010, through December 31, 2010, was
April 18, 2011, including extensions. In addition, the due date for filing a Form 709 to
elect to treat a trust as a GST trust or to allocate GST exemption to a transfer occurring
during 2010 under § 26.2632-1(b)(3) or (4) was April 18, 2011, including extensions.
However, if a donor timely filed Form 709 for the taxable year ending
December 31, 2010, but failed to allocate GST exemption to a transfer occurring during
such year, see § 301.9100-2 for possible relief.
D. Application of Chapter 13 to Testamentary Transfers During 2010
For purposes of chapter 13, the Treasury Department and IRS will construe and
apply any reference to chapter 11 without regard to whether the executor of a decedent
who died in 2010 made a Section 1022 Election. For example, references to chapter 11
in §§ 2612(c)(1), 2642(b)(2)(A), 2642(f), 2651(e)(1)(B), and 2661(2) will be construed as
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if the decedent was subject to chapter 11 even if the decedent’s executor made the
Section 1022 Election.
III
Transfer Certificates Under § 20.6325-1
Section 6324(a)(1) generally provides that, unless the estate tax is paid in full, a
lien is imposed upon the gross estate of a decedent for 10 years from the date of death
for any unpaid estate tax liability. Section 6324(a)(2) generally provides that, if the
estate tax is not paid when due, then (1) any transferee, trustee, person in possession
of property, or person who receives property from the gross estate as described in
sections 2034 to 2042 shall be personally liable for the estate tax to the extent of the
value of that property on the decedent’s date of death and (2) any part of any property
included in the gross estate that is transferred by such person shall be divested of the
lien and a like lien shall attach to all of the property of such person. Section 6325(c)
and the regulations thereunder provide procedures for issuing a certificate of discharge
of lien for any property subject to any lien imposed by section 6324.
In the case of a transfer agent holding property registered in the name of a
nonresident decedent who is not a citizen of the United States, § 20.6325-1(a) provides
that the IRS may issue a transfer certificate to permit the transfer of property without
liability for such decedent’s estate tax. Specifically-[a] transfer certificate is a certificate permitting the transfer of property of a
nonresident decedent without liability. . . . Corporations, transfer agents of
domestic corporations, transfer agents of foreign corporations (except as
to shares held in the name of a nonresident decedent not a citizen of the
United States), banks, trust companies, or other custodians in actual or
constructive possession of property, of such a decedent can insure
avoidance of liability for taxes and penalties only by demanding and
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receiving transfer certificates before transfer of property of nonresident
decedents.
Thus, transfer certificates requested with respect to property of a nonresident
decedent who is not a citizen of the United States have been issued by the IRS when
the Commissioner has been satisfied that the “tax imposed upon the estate, if any, has
been fully discharged or provided for.” Section 20.6325-1(c).
Concerns have been raised as to whether it is still necessary to obtain such
transfer certificates prior to transferring property owned by nonresident decedents who
are not citizens of the United States, who died in 2010, and whose executors make the
Section 1022 Election. This notice clarifies that a transfer certificate is not required, and
the IRS will not issue transfer certificates, with respect to the property of a nonresident
decedent who is not a citizen of the United States, who died in 2010, and whose
executor makes the Section 1022 Election.
IV
Election to Treat a Trust as Part of an Estate Under Section 645
Under section 645, if the executor (if any) of an estate and the trustee of a
qualified revocable trust so elect, the trust will be treated as part of the estate (and not
as a separate trust) for income tax purposes for all taxable years of the estate ending
after the date of the decedent’s death and before the applicable date. Section 645(b)(2)
defines “applicable date” as, “(A) if no return of tax imposed by chapter 11 is required to
be filed, the date which is 2 years after the date of the decedent’s death, and (B) if such
a return is required to be filed, the date which is 6 months after the date of the final
determination of the liability for tax imposed by chapter 11.” If an executor makes the
Section 1022 Election, no return of tax imposed by chapter 11 is required to be filed.
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Accordingly, if an executor makes the Section 1022 Election, section 645(b)(2)(A)
applies and the applicable date is the date that is 2 years after the date of the
decedent’s death.
REQUEST FOR COMMENTS
The Treasury Department and the IRS invite public comments on the guidance
provided in this notice. All materials submitted will be available for public inspection and
copying.
Comments may be submitted to Internal Revenue Service, CC:PA:LPD:PR
(Notice 2011-66), Room 5203, PO Box 7604, Ben Franklin Station, Washington, DC
20044. Submissions may also be hand-delivered Monday through Friday between the
hours of 8 a.m. and 4 p.m. to the Couriers Desk at 1111 Constitution Avenue, NW,
Washington, DC 20224, Attn:CC:PA:LPD:PR (Notice 2011-66), Room 5203.
Submissions may also be sent electronically via the internet to the following email
address: Notice.comments@irscounsel.treas.gov. Include the notice number (Notice
2011-66) in the subject line.
EFFECTIVE DATE
This notice is applicable to executors of the estates of decedents who died in
2010, and to persons acquiring property from such a decedent whose executor makes
the Section 1022 Election. This notice is also applicable to donors who made a GST
transfer or an indirect gift for purposes of the GST tax during 2010. The Treasury
Department and the IRS intend to issue regulations to confirm the guidance set forth in
this notice.
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DRAFTING INFORMATION
The principal authors of this notice are Laura Urich Daly, Theresa Melchiorre,
and Mayer Samuels of the Office of Associate Chief Counsel (Passthroughs & Special
Industries). For further information regarding this notice, contact Laura Urich Daly,
Theresa Melchiorre, or Mayer Samuels on (202) 622-3090 (not a toll-free call).
PAPERWORK REDUCTION ACT
The collection of information contained in this notice has been submitted to the
Office of Management and Budget (OMB) in accordance with the Paperwork Reduction
Act (44 U.S.C. 3507) and OMB approval is pending. An agency may not conduct or
sponsor, and a person is not required to respond to, a collection of information unless
the collection of information displays a valid control number.
The first, second, and third collection of information requirements, as required by
section 6018(c) and (e), are in section I.C. of this notice. The collection of information
relates to the requirement that the executor provide a statement to each recipient
acquiring property reported on Form 8939. Section I.C of this notice also requires the
executor to provide updated statements to each recipient of property affected by any
adjustment made to Form 8939. Finally, section I.C of this notice requires the executor
to provide any other information and supporting documentation as identified in the
instructions to the Form 8939 or in any Internal Revenue Bulletin (see
§ 601.601(d)(2)(ii)(b)). This collection of information is necessary for the proper
performance of the function of the IRS in the collection of income tax when the property
is later disposed of by the recipient or other holder of the property.
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It is anticipated that the decedent’s executor will complete and attach to Form
8939 schedules showing property received by each recipient acquiring property from a
decedent. To meet this collection of information requirement, the executor is required to
send a copy of the schedule relating to property received by that particular recipient to
such recipient and to send an updated schedule to each recipient in the event the
information on the schedule changes. The decedent’s executor will also have to
provide any other information and supporting documentation as identified in the
instructions to the Form 8939 or in any Internal Revenue Bulletin. We estimate that
approximately 7,000 estates of decedents who died in 2010 will file Form 8939 and that
it will take an executor approximately 10 hours to comply with these requirements. The
total reporting burden is estimated to be 70,000 hours.
The fourth collection of information requirement in this notice is in section II.A, as
provided in Treasury Regulation § 26.2632-1(d)(1), and relates to allocating the
decedent’s unused GST exemption. This information collection is necessary for the
proper performance of the function of the IRS in the collection of GST tax when there is
a taxable termination or taxable distribution. We estimate that 6,000 executors of
estates of decedents who died in 2010 will allocate the decedent’s unused GST
exemption on a Schedule R for Form 8939 attached to Form 8939 and that it will take
each executor approximately 3 hours to prepare the documentation. The total reporting
burden is estimated to be 18,000 hours.
Books or records relating to collections of information must be retained as long
as their contents may become material in the administration of any internal revenue law.
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Generally, tax returns and tax return information are confidential, as required by section
6103.
