Tax Alert

• Jurisdiction: United States,Federal
• Publication year: 2022
• Citation: Vol. 28 No. 4

TAX ALERT

Written by Elizabeth T. Pierson, Esq.^*

This article summarizes selected developments in federal and state taxation law since the last issue of the Quarterly that may be of interest to trust and estate attorneys.

I. FEDERAL ADMINISTRATIVE & LEGISLATIVE ACTIVITIES

A. Proposed 20% Minimum Tax for Ultra Wealthy

H.R. NO. 8558, 117TH CONG., 2D. SESS. (2022)

The Billionaire Minimum Income Tax Act has been introduced. The tax would require that very wealthy individuals (net worth of $100,000,000 or more) and trusts pay a 20% minimum tax on annual income and annual unrealized capital gains.

B. Extension of Late Portability Election

REV. PROC. 2022-32, 2022 IRB 101 (JULY 8, 2022)

The IRS has extended the relief for taxpayers to make a late portability election without obtaining a private letter ruling. The Revenue Procedure allows a taxpayer to file a late estate tax return to make a DSUE portability election up to five years after the decedent's death (the previous limitation was two years). However, this relief is available only if the executor was not otherwise required to file an estate tax return and the executor had not filed a timely estate tax return.

C. Proposed Regulations—Estate Tax...