Chief Counsel Advice 201020009Chief Counsel Advice 201020009

Gift tax paid not brought into taxable estate of non-U.S. resident under IRC Section 2104

In CCA 20102009 (May 21, 2010), the IRS held that IRC Section 2104(b) didn't bring the amount of gift tax paid on gifts made within three years of death into the gross estate of a non-resident alien (NRA).

IRC Section 2013 defines an NRA's gross estate to be that part of the decedent's gross estate (as determined under IRC Section 2031) that's situated in the United States. Under Section 2104(b), property transferred by the decedent within the meaning of IRC Sections 2035 through 2038 is deemed situated in the United States if the property was situated in the United States at the time of transfer or the decedent's death. Therefore, if an NRA transferr...