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TREAS/IRS RIN: 1545-BJ43 Publication ID: Fall 2018 
Title: Imposition of Tax on Gifts and Bequests From Expatriates 

On June 17, 2008, under section 301 of the Heroes Earnings Assistance and Relief Tax Act of 2008, Congress created a new chapter 15 of the Internal Revenue Code and added section 2801. This new provision imposes a tax on a U.S. citizen or resident receiving a covered gift or covered bequest during the calendar year. A covered gift or covered bequest is a gift or bequest received from a covered expatriate, with certain exceptions. The tax is calculated by multiplying the value of the total covered gifts and covered bequests received during the year, reduced by the section 2503(b) amount, by the highest estate tax rate (or gift tax rate if higher) for the taxable year. On July 20, 2009, the Treasury Department and the IRS issued Announcement 2009-57, which states that the Treasury Department and the IRS intend to issue guidance under section 2801 and new Form 708. Proposed regulations were issued on September 10, 2015. The final regulations will provide guidance on the tax imposed by section 2801 on U.S. citizens and residents and certain individuals who relinquished U.S. citizenship or ceased to be lawful permanent residents of the U.S. on or after June 17, 2008, and will provide guidance on new Form 708, including the due date for filling and paying the section 2801 tax.

Agency: Department of the Treasury(TREAS)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: Other 
CFR Citation: 26 CFR 28   
Legal Authority: 26 U.S.C. 2801    26 U.S.C. 6011    26 U.S.C. 6075    26 U.S.C. 6081    26 U.S.C. 7805    ...   
Legal Deadline:  None
Action Date FR Cite
NPRM and Notice of Public Hearing  09/10/2015  80 FR 54447   
NPRM Comment Period End  12/09/2015 
Final Action  05/00/2019 
Additional Information: REG-112997-10 Drafter attorney: Donna K. Douglas (202) 317-6859 Reviewer attorney: Leslie H. Finlow (202) 317-6859 Treasury attorney: Catherine Hughes (202) 622-9407 CC:PSI
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Donna K. Douglas
Department of the Treasury
Internal Revenue Service
1111 Constitution Avenue NW., Room 4110,
Washington, DC 20224
Phone:202 317-6859
Fax:855 591-7866