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The regulations issued under section 2013 have been amended
to reflect section 7520’s enactment, yet they continue to
expressly authorize use of “recognized valuation principles” in
valuing life estates. Sec. 20.2013-4(a), Estate Tax Regs. They
similarly have retained the nonimperative term “see” to cite
provisions dealing with actuarial tables as an example of such
principles. Id. Furthermore, one of the provisions so cited is
section 20.7520-3, Estate Tax Regs., which enumerates exceptions
to use of actuarial tables. Section 20.7520-3, Estate Tax Regs.,
in turn, was promulgated under the explicit statutory grant of
authority in section 7520(b), stating that the section shall not
apply for purposes of “any other provision specified in
regulations.” Section 20.7520-3(a)(9), Estate Tax Regs., then
likewise specifies that section 7520 shall not apply for purposes
of “Any other sections of the Internal Revenue Code to the extent
provided by the Internal Revenue Service in revenue rulings or
revenue procedures.” As effective in 1994, Rev. Rul. 80-80,
1980-1 C.B. 194, precluded use of valuation tables where death
was clearly imminent. We observe that such would frequently be
the case in the throes or aftermath of an airplane crash.
We also reject the estates’ contentions that, in order for
an exception to fall within the terms of section 7520(b) and
section 20.7520-3(a)(9), Estate Tax Regs., the Commissioner is
required in all instances to specifically designate in the
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Last modified: May 25, 2011