How IRS Guidance Makes it impossible to Comply with Section 2801 in 2 Hours or Less

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Department or Administrative Unit


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In 2008 Congress added Section 2801 to the Internal Revenue Code. This section targets those individuals who, by relinquishing citizenship or residency, could potentially escape the gift or estate tax. While the legislative intent is clear, the mechanics of how Section 2801 should function have troubled the IRS for the last eleven years. In those eleven years, the IRS has neither issued a publication nor released a form. The only administrative guidance to this date remains a set of proposed regulations issued in 2015. While the proposed regulations contain provisions, which will cause taxpayers to face nearly insurmountable compliance obstacles, the IRS estimates that a taxpayer should be able to comply in two hours or less! This article will outline the five most glaring miscalculations the IRS has made in the proposed 2801 regulations.


This article was originally published in The Value Examiner. The full-text article from the publisher can be found here.

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The Value Examiner


National Association of Certified Valuation Analysts