SERVICE OPENS DOOR TO REQUESTS FOR ADVANCE RULINGS FROM LIVING PERSONS ON ESTATE TAX MATTERS.

Rev. Proc. 88-50

SECTION 1. PURPOSE

This revenue procedure announces a change in Internal Revenue Service policy regarding the issuance of advance rulings on estate tax matters. It provides on a test basis, until December 31, 1989, for the issuing of advance estate tax rulings under all sections of chapter 11 of the Internal Revenue Code, subject to the limitations described below.

SEC. 2. BACKGROUND

Rev. Proc. 88-1, 1988-1 I.R.B. 7, provides procedures for issuing letter rulings concerning the interpretation or application of the federal tax laws within the jurisdiction of the Corporation Tax Division and the Individual Tax Division in the Office of the Associate Chief Counsel (Technical and International). Rev. Proc. 88- 3, 1988-1 I.R.B. 29, provides a list of the areas of federal tax law within the jurisdiction of those divisions in which advance rulings will not be issued. Both procedures state that the Service will not issue rulings with respect to the prospective application of the estate tax laws to the property or the estate of a living person, except as provided in Rev. Proc. 87-58, 1987-43 I.R.B. 22. Rev. Proc. 87-58 establishes a temporary procedure for issuing advance estate tax rulings under sections 2041 and 2056 of the Internal Revenue Code.

SEC. 3. SCOPE

This procedure only applies to those estate tax ruling requests that meet the requirements set forth in section 8 (Instructions to Taxpayer) of Rev. Proc. 88-1 and that come within the primary jurisdiction of the Individual Tax Division. This procedure is not effective for determination letters issued by District Directors.

SEC. 4. MODIFICATION

01 Section 5.02 of Rev. Proc. 88-1 and section 3.02(3) of Rev. Proc. 88-3 state that the Service will not issue rulings on matters relating to the application of the estate tax law to the property or the estate of a living person. These restrictions in section 5.02 of Rev. Proc. 88-1 and section 3.02(3) of Rev. Proc. 88-3 are deleted.

02 Advance rulings will be issued only if there is an executed will, trust instrument, deed of conveyance, or contract or if the individual on whose behalf the ruling is requested states in writing, under penalty of perjury, that such individual has a present intention to execute the will, trust instrument, deed of conveyance, or contract. A copy of such executed or proposed document must be included in the request.

03 Each ruling request must contain a statement why the law in connection with the request is uncertain and specifically why the issue is not adequately addressed by statute, regulations, decisions of the Supreme Court, revenue rulings, or revenue procedures.

04 Areas in which advance estate tax rulings will not be issued include:

1. Computations of the tax.

2. Actuarial factors.

3. Factual matters, such as determining the fair market value of property.

4. Any area covered by a prohibition against ruling in Rev. Proc. 88-1, as modified by Rev. Proc. 88-18, 1988-20 I.R.B. 32, or Rev. Proc. 88-3, except as provided in section 4.01, above.

05 Each ruling issued under this procedure will include a caveat that the ruling is based on the facts and applicable law in effect on the date of issuance.

SEC. 5. USER FEE

01 Section 4.05 of Rev. Proc. 88-8, 1988-4 I.R.B. 22, as modified by Rev. Proc. 88-13, 1988-7 I.R.B. 7, provides generally that all requests for rulings received after February 1, 1988, must be accompanied by a check or money order, payable to the Internal Revenue Service, in the appropriate amount.

02 Each request for a ruling submitted under this procedure should be sent to the Internal Revenue Service, Associate Chief Counsel (Technical and International), Attention: CC:IND:D:C, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044. Requests may be hand-delivered to Room 6561, 1111 Constitution Avenue, N.W., Washington, D.C.

SEC. 6. EFFECT ON OTHER DOCUMENTS

01 Rev. Proc. 88-1 is modified.

02 Rev. Proc. 88-3 is modified.

03 Rev. Proc. 87-58 is superseded.

SEC. 7. EFFECTIVE DATE.

This revenue procedure is effective * * *, the date of its publication in the Internal Revenue Bulletin.

SEC. 8. OBSOLESCENCE

This revenue procedure is obsolete as of January 1, 1990.

DRAFTING INFORMATION

The principal author of this revenue procedure is George Masnik of the Individual Tax Division. For further information regarding this revenue procedure contact Mr. George Masnik on (202) 566-4788 (not a toll-free call).

/*/ Insert the date of publication of this Revenue Procedure in the Internal Revenue Bulletin.