[Federal Register: July 13, 2004 (Volume 69, Number 133)]
[Proposed Rules]
[Page 42000-42004]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13jy04-29]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 26
[REG-153841-02]
RIN 1545-BB54
Election Out of GST Deemed Allocations
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: These proposed regulations provide guidance for making the
election under section 2632(c)(5)(A)(i) of the Internal Revenue Code to
not have the deemed allocation of unused generation-skipping transfer
(GST) tax exemption under section 2632(c)(1) apply with regard to
certain transfers to a GST trust, as defined in section 2632(c)(3)(B).
The proposed regulations also provide guidance for making the election
under section 2632(c)(5)(A)(ii) to treat a trust as a GST trust. The
regulations primarily affect individuals.
DATES: Written and electronic comments and requests for a public
hearing must be received by October 12, 2004.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-153841-02), room
5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
153841-02), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC, or sent electronically, via the IRS
Internet site at http://www.irs.gov/regs or via the Federal eRulemaking Portal at http://www.regulations.gov (IRS--REG-153841-02).
FOR FURTHER INFORMATION CONTACT: Mayer R. Samuels, (202) 622-3090 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information contained in this notice of proposed
rulemaking has been submitted to the Office of Management and Budget
for review in accordance with the Paperwork Reduction Act of 1995 (44
U.S.C. 3507(d)). Comments on the collection of information should be
sent to the Office of Management and Budget, Attn: Desk Officer for the
Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, DC 20503, with copies to the Internal Revenue
Service, Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP;
Washington, DC 20224. Comments on the collection of information should
be received by September 13, 2004. Comments are specifically requested
concerning:
Whether the proposed collection of information is necessary for the
proper performance of the functions of the Internal Revenue Service,
including whether the information will have practical utility;
The accuracy of the estimated burden associated with the proposed
collection of information (see below);
How the quality, utility, and clarity of the information to be
collected may be enhanced;
How the burden of complying with the proposed collection of
information may be minimized, including through the application of
automated collection techniques or other forms of information
technology; and
Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of service to provide information.
The collection of information in this proposed regulation is in
Sec. 26.2632-1(b)(2)(ii), (b)(2)(iii), and (b)(3). This information is
required by the IRS for taxpayers who elect to have the automatic
allocation rules not apply to the current transfer and/or to future
transfers to the trust or to terminate such election. This information
is also required by the IRS for taxpayers who elect to treat trusts
described in section 2632(c)(3)(B)(i) through (vi) as GST trusts or to
terminate such election. This information will be used to identify the
trusts to which the election or termination of election will apply. The
collection of information is required in order to have a valid election
or termination of election. The likely respondents are individuals
contributing to trusts that have skip persons as beneficiaries.
Estimated total annual reporting burden: 12,500 hours.
Estimated average annual burden hours per respondent: 30 minutes.
Estimated number of respondents: 25,000.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a valid
control number assigned by the Office of Management and Budget.
Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
Background
Section 2601 imposes a tax on every generation-skipping transfer
(GST). Under section 2631(a), for purposes of determining the amount of
GST tax imposed on a transfer, every individual is allowed a GST
exemption ($1,500,000 in 2004) that may be allocated by the individual
(or his or her executor) to any property with regard to which the
individual is the transferor. Generally, under section 2632(a), an
allocation of an individual's GST exemption may be made at any time on
or before the date prescribed for filing the estate tax return for the
individual's estate (determined with regard to extensions).
Section 2632 also provides deemed allocation rules pursuant to
which an individual's available GST exemption is automatically
allocated to certain kinds of transfers, without any action on the part
of the transferor. Under section 2632(b), an individual's unused GST
exemption is automatically allocated to transfers made during that
individual's lifetime that are direct skips as defined in section
2612(c), to the extent necessary to make the inclusion ratio zero for
the property transferred. Under section 2632(c), in the case of a
lifetime transfer made after December 31, 2000
[[Page 42001]]
that is an indirect skip, the transferor's available GST exemption is
automatically allocated to the transfer to the extent necessary to make
the inclusion ratio zero for the property transferred. Section
2632(c)(3)(A) defines an indirect skip as a transfer of property (other
than a direct skip) subject to gift tax that is made to a GST trust. A
GST trust is defined in section 2632(c)(3)(B), in general, as any trust
that could have a generation-skipping transfer. However, no trust
described in section 2632(c)(3)(B)(i) through (vi) is treated as a GST
trust, because a sufficient possibility exists (based on the statutory
criteria) that the trust corpus will not be distributed to lower
generations. A transfer to any trust described in section
2632(c)(3)(B)(i) through (vi) will not be subject to the automatic
allocation of the GST exemption. The automatic allocation under section
2632(c) also applies to an indirect skip occurring upon the post-2000
termination of an estate tax inclusion period.
Under section 2632(c)(5)(A)(i)(I), an individual may elect out of
the deemed allocation rules so that GST exemption will not be allocated
automatically to a particular transfer that is an indirect skip. Under
section 2632(c)(5)(B)(i), this election out with regard to a particular
indirect skip shall be deemed timely if made on a timely filed gift tax
return for the calendar year in which the transfer was made, or deemed
to have been made under section 2632(c)(4) with regard to trusts
subject to an estate tax inclusion period, or on such later dates as
may be prescribed in regulations.
Under section 2632(c)(5)(A)(i)(II), an individual may elect out of
the deemed allocation rules for indirect skips so that GST exemption
will not be allocated automatically to any or all transfers made to the
trust by that individual, regardless of when a transfer is, or may in
the future be, made. Under section 2632(c)(5)(B)(ii), this election out
with regard to any or all transfers to the trust by that individual may
be made on a timely filed gift tax return for the calendar year for
which the election is to become effective.
Alternatively, under section 2632(c)(5)(A)(ii), an individual may
elect to treat any trust as a GST trust with regard to any or all
transfers made by that individual to the trust. If this election is
made, the rules for the automatic allocation of the GST exemption will
apply with regard to that individual's transfers to the trust,
notwithstanding that the trust is described in section 2632(c)(3)(B)(i)
through (vi). Under section 2632(c)(5)(B)(ii), the election to treat a
trust as a GST trust may be made on a timely filed gift tax return for
the calendar year for which the election is to become effective.
Notice 2001-50 (2001-2 C.B. 189), states that the Treasury
Department and the IRS will issue regulations providing that the
election out of the automatic allocation for indirect skips and the
election to treat any trust as a GST trust must be made on a timely
filed federal gift tax return (which is the same rule that applies for
the election out of the automatic allocation for direct skips contained
in section 2632(b)(3) and Sec. 26.2632-1(b)(1)(i)).
Explanation of Provisions
Under the proposed regulations, the election out of the automatic
allocation rules for indirect skips and the election to treat any trust
as a GST trust are to be made on a timely filed federal gift tax
return.
Under the proposed regulations, a transferor who wants to elect out
of the automatic allocation rules for indirect skips has the option of
electing out for the specific transfer to the GST trust, or making a
single election with regard to the trust that applies to the current
transfer and all subsequent transfers made by that transferor to the
trust. Under the second option, once the election is made with regard
to a trust, the election remains effective for all subsequent transfers
to that trust by the electing transferor, until that transferor's
election is terminated. Practitioners have commented that in many
cases, particularly situations in which trust corpus consists of
primarily insurance contracts, the transferor may not be required to
file a Federal gift tax return reporting annual transfers to a GST
trust because the transfers qualify for the gift tax annual exclusion
under section 2503(b). If under the terms of the trust instrument
distributions to skip persons are unlikely, the transferor may choose
not to allocate GST exemption to the trust. The rule in the proposed
regulation is intended to alleviate the need to repeatedly file a gift
tax return to elect out of the automatic allocation rules for transfers
that would not otherwise require a Federal gift tax return to be filed.
Thus, once the transferor ``elects out'' of the automatic allocation
rule for indirect skips with regard to any or all transfers made by
that transferor to the trust, the election out, until terminated,
remains effective for all subsequent transfers made by that transferor
to the trust, without any further reporting requirement on the part of
the transferor. A similar rule applies with regard to the election to
treat a trust as a GST trust.
Finally, the proposed regulations revise the examples illustrating
the rules for allocation of GST exemption to reflect the recent
statutory changes.
Proposed Effective Date
The regulations are proposed to be applicable for elections made on
or after the date that the proposed regulations are published in the
Federal Register. However, any election under section 2632(c)(5)(A)
made before that date will be recognized if the election was made on a
timely filed gift tax return in a manner that provided adequate notice
to the Commissioner that the transferor made the election.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866. Therefore, a regulatory assessment is not required. It also has
been determined that section 553(b) of the Administrative Procedure Act
(5 U.S.C. chapter 5) does not apply to these proposed regulations, and
because these proposed regulations do not impose a collection of
information on small entities, the Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Therefore, a Regulatory Flexibility Analysis
is not required. Pursuant to section 7805(f) of the Internal Revenue
Code, the proposed regulations will be submitted to the Small Business
Administration for comment on their impact on small business.
Comments and Requests for Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written (a signed original and eight
(8) copies) or electronic comments that are submitted timely to the
IRS. The IRS and Treasury Department request comments on the clarity of
the proposed rules and how they can be made easier to understand. All
comments will be available for public inspection and copying. A public
hearing will be scheduled if requested in writing by any person that
timely submits written comments. If a public hearing is scheduled,
notice of the date, time, and place for the public hearing will be
published in the Federal Register.
Drafting Information
The principal author of these proposed regulations is Mayer R.
Samuels, Office of the Associate Chief Counsel (Passthroughs and
Special Industries), IRS. If you have any questions concerning these
proposed
[[Page 42002]]
regulations, please contact Mayer R. Samuels at (202) 622-3090. Other
personnel from the IRS and the Treasury Department participated in
their development.
List of Subjects in 26 CFR Part 26
Estate taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 26 is proposed to be amended as follows:
PART 26--GENERATION-SKIPPING TRANSFER TAX REGULATIONS UNDER THE TAX
REFORM ACT OF 1986
Paragraph 1. The authority citation for part 26 continues to read,
in part, as follows:
Authority: 26 U.S.C. 7805 * * *.
Par. 2. In Sec. 26.2600-1, the table is amended under the entries
for Sec. 26.2632-1 by revising the entry for paragraph (b)(2) and
adding entries for paragraphs (b)(3), (b)(4) and (e) to read as
follows:
Sec. 26.2600-1 Table of contents.
* * * * *
Sec. 26.2632-1 Allocation of GST exemption.
* * * * *
(b) * * *
(2) Automatic allocation to indirect skips made after December
31, 2000.
(3) Election to treat trust as GST trust.
(4) Allocation to other transfers.
* * * * *
(e) Effective date
* * * * *
Par. 3. Section 26.2632-1 is amended as follows:
1. Paragraph (b)(2) is redesignated as paragraph (b)(4).
2. Paragraphs (b)(2) and (b)(3) are added.
3. In newly designated paragraph (b)(4)(i), the third sentence is
revised.
4. In newly designated paragraph (b)(4)(ii)(A)(1), the fourth
sentence is revised.
5. In newly designated paragraph (b)(4)(ii)(B):
a. All references to paragraph ``(b)(2)(ii)(A) (1)(i)'' are removed
and ``(b)(4)(ii)(A)(1)(i)'' is added in its place.
b. All references to paragraph ``(b)(2)(ii)(A)(1)(ii)'' are removed
and ``(b)(4)(ii)(A)(1)(ii)'' is added in its place.
c. All references to paragraph ``(b)(2)(ii)(A)(1)(iii)'' are
removed and ``(b)(4)(ii)(A)(1)(iii)'' is added in its place.
6. Examples 1 through 5 in newly designated paragraph (b)(4)(iii)
are revised.
7. In paragraph (c)(1), the first sentence is removed and two
sentences are added in its place.
8. In paragraph (d)(1), the fourth sentence is revised.
9. Paragraph (e) is added.
The additions and revisions read as follows:
Sec. 26.2632-1 Allocation of GST exemption.
* * * * *
(b) * * *
(2) Automatic allocation to indirect skips made after December 31,
2000--(i) In general. An indirect skip is a transfer of property to a
GST trust as defined in section 2632(c)(3)(B) provided that the
transfer is subject to gift tax and does not qualify as a direct skip.
In the case of an indirect skip made after December 31, 2000, to which
section 2642(f) (relating to transfers subject to an estate tax
inclusion period) does not apply, the transferor's unused GST exemption
is automatically allocated to the property transferred (but not in
excess of the fair market value of the property on the date of the
transfer). In the case of an indirect skip to which section 2642(f)
does apply, the indirect skip is deemed to be made at the close of the
estate tax inclusion period and the GST exemption is deemed to be
allocated at that time. The transferor may prevent the automatic
allocation of GST exemption with regard to an indirect skip, as
provided in paragraphs (b)(2)(ii) and (iii) of this section.
(ii) Election to have automatic allocation rules not apply to the
current transfer. The transferor may prevent the automatic allocation
of GST exemption with regard to the current indirect skip (and not to
any other transfer) to a trust, or to one or more separate shares that
are treated as separate trusts under Sec. 26.2654-1(a)(1), by
attaching a statement to a timely filed Form 709 (as defined in
paragraph (b)(1)(ii) of this section) for the calendar year in which
the transfer was made (whether or not a Form 709 would otherwise be
required for that year). The statement must identify the trust (or
separate share), describe the transfer, and specifically provide that
the transferor is electing, pursuant to section 2632(c)(5)(A), to have
the automatic allocation rules contained in section 2632(c)(1) not
apply to the described transfer to the trust (or separate share). In
the case of a transfer treated as made one-half by the transferor and
one-half by the transferor's spouse under section 2513, a statement
must be attached to the return filed by each transferor seeking to
prevent the automatic allocation. The election will apply only with
regard to the described transfer, and all subsequent transfers to the
trust (or separate share) will be subject to the automatic allocation
rules, unless the transferor subsequently files an election described
in paragraph (b)(2)(iii) of this section, or files an election under
this paragraph with regard to each transfer as additional transfers are
made.
(iii) Election to have automatic allocation rules not apply to both
the current transfer and any or all future transfers to the trust--(A)
In general. The transferor may prevent the automatic allocation of GST
exemption to both the current transfer and any or all subsequent
transfers made by the transferor to the trust or to one or more
separate shares that are treated as separate trusts under Sec.
26.2654-1(a)(1). The transferor must attach a statement to a timely
filed Form 709 (as defined paragraph (b)(1)(ii) of this section) for
the calendar year in which the current transfer was made (whether or
not a Form 709 would otherwise be required for that year). The
statement must identify the trust (or separate share), describe the
current transfer, and specifically provide that pursuant to section
2632(c)(5)(A) the transferor is electing to have the automatic
allocation rules contained in section 2632(c)(1) not apply to the
described current transfer as well as all future transfers made by the
transferor to the trust (or separate share). The election, unless and
until terminated, will remain in effect for all future transfers made
by the transferor to the trust (or separate share). No future gift tax
return will have to be filed by the transferor in order to prevent the
automatic allocation of the GST exemption to such future transfers.
(B) Termination of election. The election described in paragraph
(b)(2)(iii)(A) of this section may be terminated by the transferor for
transfers to the trust (or separate share) in a subsequent year by
attaching a statement to a timely filed Form 709 (as defined in
paragraph (b)(1)(ii) of this section) for the calendar year in which
the first transfer to which the election is not to apply was made
(whether or not a Form 709 would otherwise be required for that year).
The statement must identify the trust (or separate share), describe the
transfer, and provide that the prior election out of the GST automatic
allocation rule described in Sec. 26.2632-1(b)(2)(iii)(A) is
terminated. Accordingly, the automatic allocation rules contained in
section 2632(c)(1) are to apply to the described current transfer as
well as to all future transfers made by the transferor to the trust (or
separate share) unless and to the extent that another election under
section 2632(c)(5)(A) is made in the future.
[[Page 42003]]
(iv) Subsequent allocations. Making an election under paragraph
(b)(2)(ii) or (iii) of this section does not prevent the transferor
from allocating the transferor's available GST exemption to a current
transfer (or, in the case of an election made under paragraph
(b)(2)(iii) of this section, to any future transfer) to a trust (or
separate share) either on a timely filed Form 709 (as defined in
paragraph (b)(1)(ii) of this section) reporting the transfer, or at a
later date in accordance with the provisions of paragraph (b)(4) of
this section.
(3) Election to treat trust as GST trust--(i) In general. A
transferor may elect to treat any trust as a GST trust, in which case
the automatic allocation rules will apply to current and future
transfers made by the electing transferor to the trust. The transferor
must attach a statement to a timely filed Form 709 (as defined in
paragraph (b)(1)(ii) of this section) for the calendar year in which a
transfer was made by the transferor (whether or not a Form 709 would
otherwise be required for that year). The statement must identify the
trust, describe the current transfer, and specifically provide that,
pursuant to section 2632(c)(5)(A)(ii), the transferor is electing to
have the trust treated as a GST trust as defined in section
2632(c)(3)(B). As a result of this election, the current transfer and
all future transfers made by the transferor to the trust will be
indirect skips as defined in paragraph (b)(2)(i) of this section to
which the transferor's unused GST exemption will be automatically
allocated in accordance with paragraph (b)(2) of this section. The
election will remain in effect for all future transfers made by the
transferor to the trust unless and until terminated (as described
below).
(ii) Termination of election. The election may be terminated by the
transferor in a subsequent year by attaching to a timely filed Form 709
(as defined in paragraph (b)(1)(ii) of this section) for the calendar
year in which the first transfer to which the election is not to apply
was made (whether or not a Form 709 would otherwise be required for the
year), a statement identifying the trust, describing the current
transfer, and providing that the prior election to treat the trust as a
GST trust as provided under Sec. 26.2632-1(b)(3)(i) is terminated.
Accordingly, if the trust does not satisfy the definition of a GST
trust, the automatic allocation rules contained in section 2632(c)(1)
will not apply to the described current transfer or to any future
transfers made by the transferor to the trust, unless and until another
election under section 2632(c)(5)(A) is made in the future.
(4) Allocation to other transfers--(i) In general. * * * See
paragraph (b)(4)(ii) of this section. * * *
(ii) Effective date of allocation--(A) In general. (1) * * * For
purposes of this paragraph (b)(4)(ii), the Form 709 is deemed filed on
the date it is postmarked to the Internal Revenue Service address as
directed in forms or other guidance published by the Service. * * *
* * * * *
(iii) Examples. The following examples illustrate the provisions of
this paragraph (b):
Example 1. Modification of allocation of GST exemption. On
December 1, 2003, T transfers $100,000 to an irrevocable GST trust
described in section 2632(c)(3)(B). The transfer to the trust is not
a direct skip. The date prescribed for filing the gift tax return
reporting the taxable gift is April 15, 2004. On February 10, 2004,
T files a Form 709 on which T properly elects out of the automatic
allocation rules contained in section 2632(c)(1) with respect to the
transfer in accordance with paragraph (b)(2)(ii) of this section,
and allocates $50,000 of GST exemption to the trust. On April 13th
of the same year, T files an additional Form 709 on which T confirms
the election out of the automatic allocation rules contained in
section 2632(c)(1) and allocates $100,000 of GST exemption to the
trust in a manner that clearly indicates the intention to modify and
supersede the prior allocation with respect to the 2003 transfer.
The allocation made on the April 13 return supersedes the prior
allocation because it is made on a timely-filed Form 709 that
clearly identifies the trust and the nature and extent of the
modification of GST exemption allocation. The allocation of $100,000
of GST exemption to the trust is effective as of December 1, 2003.
The result would be the same if the amended Form 709 decreased the
amount of the GST exemption allocated to the trust.
Example 2. Modification of allocation of GST exemption. The
facts are the same as in Example 1, except on July 8, 2004, T files
a Form 709 attempting to reduce the earlier allocation. The return
is not a timely filed return. The $100,000 GST exemption allocated
to the trust, as amended on April 13, 2004, remains in effect
because an allocation, once made, is irrevocable and may not be
modified after the last date on which a timely filed Form 709 can be
filed.
Example 3. Effective date of late allocation of GST exemption.
On December 1, 2003, T transfers $100,000 to an irrevocable GST
trust described in section 2632(c)(3)(B). The transfer to the trust
is not a direct skip. The date prescribed for filing the gift tax
return reporting the taxable gift is April 15, 2004. On February 10,
2004, T files a Form 709 on which T properly elects out of the
automatic allocation rules contained in section 2632(c)(1) in
accordance with paragraph (b)(2)(ii) of this section with respect to
that transfer. On December 1, 2004, T files a Form 709 and allocates
$50,000 to the trust. The allocation is effective as of December 1,
2004.
Example 4. Effective date of late allocation of GST exemption. T
transfers $100,000 to a GST trust on December 1, 2003, in a transfer
that is not a direct skip. On April 15, 2004, T files a Form 709 on
which T properly elects out of the automatic allocation rules
contained in section 2632(c)(1) with respect to the entire transfer
in accordance with paragraph (b)(2)(ii) of this section and T does
not make an allocation of any GST exemption on the Form 709. On
September 1, 2004, the trustee makes a taxable distribution from the
trust to T's grandchild in the amount of $30,000. Immediately prior
to the distribution, the value of the trust assets was $150,000. On
the same date, T allocates GST exemption to the trust in the amount
of $50,000. The allocation of GST exemption on the date of the
transfer is treated as preceding in point of time the taxable
distribution. At the time of the GST, the trust has an inclusion
ratio of .6667 (1-(50,000/150,000)).
Example 5. Automatic allocation to split-gift. On December 1,
2003, T transfers $50,000 to an irrevocable GST Trust described in
section 2632(c)(3)(B). The transfer to the trust is not a direct
skip. On April 30, 2004, T and T's spouse, S, each files an initial
gift tax return for 2003, on which they consent, pursuant to section
2513, to have the gift treated as if one-half had been made by each.
Previously, neither T nor S filed a timely gift tax return electing
out of the automatic allocation rules contained in section
2632(c)(1). As a result of the election under section 2513, which is
retroactive to the date of T's transfer, T and S are each treated as
the transferor of one-half of the property transferred in the
indirect skip. Thus, $25,000 of T's unused GST exemption and $25,000
of S's unused GST exemption is automatically allocated to the trust.
Both allocations are effective on and after the date that T made the
transfer. The result would be the same if T's transfer constituted a
direct skip subject to the automatic allocation rules contained in
section 2632(b).
(c) Special rules during an estate tax inclusion period--(1) In
general. An allocation of GST exemption (including an automatic
allocation to a direct skip, but not an indirect skip) to property
subject to an estate tax inclusion period (ETIP) cannot be revoked, but
becomes effective no earlier than the date of any termination of the
ETIP with respect to the trust. See paragraph (b)(2)(i) of this section
regarding the automatic allocation of GST exemption to an indirect skip
subject to an ETIP. * * *
* * * * *
(d) Allocations after the transferor's death--(1) * * * A late
allocation of GST exemption by an executor, other than an allocation
that is deemed to be made under section 2632(b)(1) or (c)(1), with
respect to a lifetime transfer of property is made on Form 706, Form
706NA, or Form 709 (filed on or before the due date of the transferor's
estate tax
[[Page 42004]]
return) and is effective as of the date the allocation is filed. * * *
* * * * *
(e) Effective Date. Paragraphs (b)(2) and (b)(3), the third
sentence of paragraph (b)(4)(i), the fourth sentence of paragraph
(b)(4)(ii)(A), paragraph (b)(4)(iii), the first two sentences of
paragraph (c)(1), and the fourth sentence of paragraph (d)(1) of this
section, when published as final regulations, will apply as of July 13,
2004.
Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 04-15752 Filed 7-12-04; 8:45 am]
BILLING CODE 4830-01-P