Estate Tax; Estates of Decedents Dying After August 16, 1954, 19080 [2012-7819]
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19080
Federal Register / Vol. 77, No. 62 / Friday, March 30, 2012 / Rules and Regulations
DEPARTMENT OF THE TREASURY
exceeds $500,000, no deduction is available
under this paragraph (c).
Internal Revenue Service
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[FR Doc. 2012–7819 Filed 3–29–12; 8:45 am]
26 CFR Part 20
BILLING CODE 1505–01–D
Estate Tax; Estates of Decedents
Dying After August 16, 1954
EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION
CFR Correction
In Title 26 of the Code of Federal
Regulations, Parts 2 to 29, revised as of
April 1, 2011, on page 392, in
§ 20.2053–4, at the end of paragraph
(c)(3), Examples 1–3 are added to read
as follows:
■
§ 20.2053–4
the estate.
sroberts on DSK5SPTVN1PROD with RULES
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(c) * * *
(3) * * *
Deduction for claims against
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RIN 3046–AA76
Disparate Impact and Reasonable
Factors Other Than Age Under the Age
Discrimination in Employment Act
Equal Employment
Opportunity Commission.
ACTION: Final rule.
AGENCY:
The Equal Employment
Opportunity Commission (‘‘EEOC’’ or
‘‘Commission’’) is issuing this final rule
to amend its Age Discrimination in
Employment Act (‘‘ADEA’’ or ‘‘Act’’)
regulations concerning disparate-impact
claims and the reasonable factors other
than age defense (‘‘RFOA’’). The
Commission published proposed rules
in the Federal Register on March 31,
2008, and February 18, 2010, for sixtyday notice-and-comment periods. After
consideration of the public comments,
the Commission has revised portions of
the proposed rules and is now issuing
a final rule covering both proposals.
DATES: Effective April 30, 2012.
FOR FURTHER INFORMATION CONTACT:
Dianna B. Johnston, Senior AttorneyAdvisor, Aaron Konopasky, AttorneyAdvisor, or Davis L. Kim, AttorneyAdvisor, at (202) 663–4640 (voice) or
(202) 663–7026 (TTY). (These are not
toll free numbers). This final rule also
is available in the following formats:
Large print, Braille, audio tape and
electronic file on computer disk.
Requests for this notice in an alternative
format should be made to the
Publications Information Center at 1–
800–669–3362 (voice) or 1–800–800–
3302 (TTY).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Example 1. There are three claims against
the estate of the decedent (D) that are not
paid and are not deductible under § 20.2053–
1(d)(4) or paragraph (b) of this section:
$25,000 of Claimant A, $35,000 of Claimant
B, and $1,000,000 of Claimant C. The
executor of D’s estate (E) may not claim a
deduction under this paragraph with respect
to any portion of the claim of Claimant C
because the value of that claim exceeds
$500,000. E may claim a deduction under
this paragraph for the total amount of the
claims filed by Claimant A and Claimant B
($60,000) because the aggregate value of the
full amount of those claims does not exceed
$500,000.
Example 2. There are three claims against
the estate of the decedent (D) that are not
paid and are not deductible under § 20.2053–
1(d)(4) or paragraph (b) of this section;
specifically, a separate $200,000 claim of
each of three claimants, A, B and C. The
executor of D’s estate (E) may claim a
deduction under this paragraph for any two
of these three claims because the aggregate
value of the full amount of any two of the
claims does not exceed $500,000. E may not
deduct any part of the value of the remaining
claim under this paragraph because the
aggregate value of the full amount of all three
claims would exceed $500,000.
Example 3. As a result of an automobile
accident involving the decedent (D) and A,
D’s gross estate includes a claim against A
that is valued at $750,000. In the same
matter, A files a counterclaim against D’s
estate that is valued at $1,000,000. A’s claim
against D’s estate is not paid and is not
deductible under § 20.2053–1(d)(4). All other
section 2053 claims and expenses of D’s
estate have been paid and are deductible. The
executor of D’s estate (E) deducts $750,000 of
A’s claim against the estate under § 20.2053–
4(b). E may claim a deduction under this
paragraph (c) for the total value of A’s claim
not deducted under § 20.2053–4(b), or
$250,000. If, instead, the value of A’s claim
against D’s estate is $1,500,000, so that the
amount not deductible under § 20.2053–4(b)
VerDate Mar<15>2010
29 CFR Part 1625
15:54 Mar 29, 2012
Jkt 226001
Background
On March 31, 2008, EEOC published
in the Federal Register a Notice of
Proposed Rulemaking (‘‘NPRM’’) to
address issues related to the United
States Supreme Court’s decision in
Smith v. City of Jackson.1 73 FR 16807,
Mar. 31, 2008. The Court ruled that
disparate-impact claims are cognizable
under the Age Discrimination in
Employment Act (‘‘ADEA’’) 2 but that
1 544
2 29
PO 00000
U.S. 228 (2005).
U.S.C. 621–34.
Frm 00022
Fmt 4700
liability is precluded when the impact
is attributable to a reasonable factor
other than age. The NPRM proposed to
revise 29 CFR 1625.7(d) to state that an
employment practice that has an
adverse impact on individuals within
the protected age group on the basis of
older age is discriminatory unless the
practice is justified by a ‘‘reasonable
factor other than age’’ and that the
individual challenging the allegedly
unlawful employment practice bears the
burden of isolating and identifying the
specific employment practice
responsible for the adverse impact. The
Commission also proposed to revise 29
CFR 1625.7(e) to state that, when the
RFOA exception is raised, the employer
has the burden of showing that a
reasonable factor other than age exists
factually.
The NPRM sought public comments
on the proposed rule and also invited
comments on whether the Commission
should provide more information on the
meaning of ‘‘reasonable factors other
than age.’’ Seven of the ten commenters
clearly supported efforts to provide
more information. One of the seven
suggested that reasonable factors should
be related to job requirements or job
performance. One commenter who
preferred that the EEOC not address the
matter argued that, if the RFOA
definition is subject to regulation, then
EEOC should consult case law for a
definition and should draft factors
relevant to the RFOA determination.
One commenter opposed efforts to
provide more information on the
meaning of RFOA.
As noted below, all commenters who
addressed the proposed revision to 29
CFR 1625(d) supported it. Four
commenters endorsed the proposal as
written and two generally supported the
section but suggested changes to the
first sentence. For the reasons explained
below, the final rule, which has been
redesignated 1625.7(c), retains the
proposal’s substantive language.
Five commenters supported the
proposed revision to 29 CFR 1625(e)
and four opposed it. The commenters
who opposed it argued that plaintiffs,
not employers, should bear the RFOA
burden of persuasion. As noted below,
the final rule, which has been
redesignated 1625.7(d), continues to
place the burden of persuasion on the
employer because the Supreme Court
agreed that the employer has the RFOA
burden of persuasion.3
Subsequently, on February 18, 2010,
EEOC published in the Federal Register
a second NPRM to address the meaning
3 Meacham v. Knolls Atomic Power Lab., 554 U.S.
84, 91–92 (2008).
Sfmt 4700
E:\FR\FM\30MRR1.SGM
30MRR1
]]>Agencies
[Federal Register Volume 77, Number 62 (Friday, March 30, 2012)]
[Rules and Regulations]
[Page 19080]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-7819]
[[Page 19080]]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 20
Estate Tax; Estates of Decedents Dying After August 16, 1954
CFR Correction
0
In Title 26 of the Code of Federal Regulations, Parts 2 to 29, revised
as of April 1, 2011, on page 392, in Sec. 20.2053-4, at the end of
paragraph (c)(3), Examples 1-3 are added to read as follows:
Sec. 20.2053-4 Deduction for claims against the estate.
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(c) * * *
(3) * * *
Example 1. There are three claims against the estate of the
decedent (D) that are not paid and are not deductible under Sec.
20.2053-1(d)(4) or paragraph (b) of this section: $25,000 of
Claimant A, $35,000 of Claimant B, and $1,000,000 of Claimant C. The
executor of D's estate (E) may not claim a deduction under this
paragraph with respect to any portion of the claim of Claimant C
because the value of that claim exceeds $500,000. E may claim a
deduction under this paragraph for the total amount of the claims
filed by Claimant A and Claimant B ($60,000) because the aggregate
value of the full amount of those claims does not exceed $500,000.
Example 2. There are three claims against the estate of the
decedent (D) that are not paid and are not deductible under Sec.
20.2053-1(d)(4) or paragraph (b) of this section; specifically, a
separate $200,000 claim of each of three claimants, A, B and C. The
executor of D's estate (E) may claim a deduction under this
paragraph for any two of these three claims because the aggregate
value of the full amount of any two of the claims does not exceed
$500,000. E may not deduct any part of the value of the remaining
claim under this paragraph because the aggregate value of the full
amount of all three claims would exceed $500,000.
Example 3. As a result of an automobile accident involving the
decedent (D) and A, D's gross estate includes a claim against A that
is valued at $750,000. In the same matter, A files a counterclaim
against D's estate that is valued at $1,000,000. A's claim against
D's estate is not paid and is not deductible under Sec. 20.2053-
1(d)(4). All other section 2053 claims and expenses of D's estate
have been paid and are deductible. The executor of D's estate (E)
deducts $750,000 of A's claim against the estate under Sec.
20.2053-4(b). E may claim a deduction under this paragraph (c) for
the total value of A's claim not deducted under Sec. 20.2053-4(b),
or $250,000. If, instead, the value of A's claim against D's estate
is $1,500,000, so that the amount not deductible under Sec.
20.2053-4(b) exceeds $500,000, no deduction is available under this
paragraph (c).
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[FR Doc. 2012-7819 Filed 3-29-12; 8:45 am]
BILLING CODE 1505-01-D
