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(1) under tables prescribed by the Secretary,
and
(2) by using an interest rate (rounded to the
nearest 2/10ths of 1 percent) equal to 120 percent
of the Federal midterm rate in effect under
section 1274(d)(1) for the month in which the
valuation date falls. * * *
(b) Section Not To Apply for Certain Purposes.--
This section shall not apply for purposes of part I of
subchapter D of chapter 1 [relating to qualified plans
for deferred compensation] or any other provision
specified in regulations.
For transfer tax purposes, regulations promulgated under
section 7520 provide that the relevant actuarial tables for
valuing interests covered by the statute are contained in section
20.2031-7, Estate Tax Regs. See sec. 20.7520-1(a)(1), Estate Tax
Regs.; sec. 25.7520-1(a)(1), Gift Tax Regs.; see also sec.
20.2031-7T(d)(5), Example (4), Temporary Estate Tax Regs., 64
Fed. Reg. 23187, 23214 (Apr. 30, 1999) (with effective date May
1, 1999, but illustrating the calculation for valuing an annuity
of $10,000 per year payable to a decedent or the decedent’s
estate).
The regulations also delineate exceptions to the mandatory
use of the tables. In the estate tax context, paragraph (a) of
section 20.7520-3, Estate Tax Regs., lists exceptions effective
as of May 1, 1989, while paragraph (b) gives additional
limitations effective with respect to estates of decedents dying
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