How IRS Guidance Makes it impossible to Comply with Section 2801 in 2 Hours or Less
Ambrosio, F. (2019) “How IRS Guidance Makes it impossible to Comply with Section 2801 in 2 Hours or Less.” The Value Examiner, p. 35, Jul-Aug 2019.
6 Pages Posted: 11 Sep 2019
Date Written: September 3, 2019
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 11 years. In 11 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 2 hours or less! This article will outline the five most glaring miscalculations the IRS has made in the proposed 2801 regulations.
Keywords: IRC 2801, 2801 Regs, Form 708, covered expatriate
Suggested Citation: Suggested Citation