§2663 — Regulations
9 cases·3 distinguished·6 cited
Statute Text — 26 U.S.C. §2663
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter, including—
such regulations as may be necessary to coordinate the provisions of this chapter with the recapture tax imposed under section 2032A(c),
regulations (consistent with the principles of chapters 11 and 12) providing for the application of this chapter in the case of transferors who are nonresidents not citizens of the United States, and
regulations providing for such adjustments as may be necessary to the application of this chapter in the case of any arrangement which, although not a trust, is treated as a trust under section 2652(b).
Treasury Regulations
- Treas. Reg. §Treas. Reg. §26.2663-1 Recapture tax under section 2032A
- Treas. Reg. §Treas. Reg. §26.2663-2 Application of chapter 13 to transfers by nonresidents not citizens of the United States
- Treas. Reg. §Treas. Reg. §26.2663-2(a) In general.
- Treas. Reg. §Treas. Reg. §26.2663-2(b) Transfers subject to chapter 13—(1) Direct skips.
- Treas. Reg. §Treas. Reg. §26.2663-2(c) Trusts funded in part with property subject to chapter 13 and in part with property not subject to chapter 13—(1) In general.
- Treas. Reg. §Treas. Reg. §26.2663-2(d) Examples.
- Treas. Reg. §Treas. Reg. §26.2663-2(e) Transitional rule for allocations for transfers made before December 27, 1995.
- Treas. Reg. §Treas. Reg. §26.2663-2(i) Numerator of applicable fraction.
9 Citing Cases
In enacting section 2663(2), Congress simply recognized that there would be problems of allocation and calculations of tax in respect of nonresident aliens because, unlike citizens and residents, not all the property of nonresident aliens is subject to U.S. estate tax. We are unimpressed with petitioner's attempt to create a "whether" patina to section 2663(2) by pointing to alleged gaps and possible invalid provisions of the proposed regulations dealing with the definition of "direct skip" tran
Although section 2663, which was added by TRA 1986 section 1431(a), 100 Stat.
931(d)(2), unlike the grant of authority in previous cases holding that the “how” prong of the test was applicable, explicitly provides that “whether income is described in paragraph (1) or (2) of subsection (a) shall be made under regulations prescribed by the Secretary.”(Emphasis added.) In addition, the grant of authority at issue in Estate of Neumann v.
ubsection (a) shall be made under regulations prescribed by the Secretary.” (Emphasis added.) In addition, the grant of authority at issue in Estate of Neumann v. Commissioner, supra at 218, directed the Secretary to draft regulations “consistent with the principles of chapters 11 and 12”, thus giving the Court a foundation for its conclusion. See sec. 2663(2).
We concluded that Congress had not given the Secretary the power to determine section 2663's application; i.e., whether the general rule of section 2663 applied to cases such as the taxpayer's.
We concluded that Congress had not given the Secretary the power to determine section 2663’s application; i.e., whether the general rule of section 2663 applied to cases such as the taxpayer’s.
Because the effective date rules of TRA 1986 section 1433(b)(2)(A) are separate transitional provisions that are not incorporated into chapter 13 of the Code, the delegation authority of section 2663 is not applicable. See Western Natl. Mut. Ins. Co. v. Commissioner, 102 T.C. 338, 357 (1994). Accordingly, the authority for the challenged