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the application of this chapter in the case of
transferors who are nonresidents not citizens of
the United States, * * *
No regulation in respect of generation-skipping transfers by
nonresident aliens had been issued at the time of decedent's
death. Notice of proposed regulations dealing with the GST tax
as applied to nonresident aliens was first published in the
Federal Register on December 24, 1992. See PS-73-88, 1993-1 C.B.
867, 883. Final regulations were published on December 27, 1995.
T.D. 8644, 1996-7 I.R.B. 16, 44 (Feb. 12, 1996). Both the
proposed and final regulations had effective dates subsequent to
the date of decedent's death.
Petitioner argues the GST tax should not apply to "direct
skips" by nonresident aliens which occurred prior to the adoption
of implementing regulations on the ground that section 2663(2)
manifests the intent of Congress to require such regulations as a
condition to the imposition of such tax. Respondent counters
that the statute itself imposes the tax and that section 2663(2)
represents simply a recognition by Congress that regulations
might be needed to fill in some of the details affecting the
application of the GST tax to transfers by nonresident aliens.
In this connection, we note that respondent apparently determined
the manner in which the GST tax should be applied herein
consistently with the methodology set forth in the proposed
regulations and that petitioner does not question that
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