AICPA Proposal to Modify Return Due Dates

March 8, 2010

Ms. Catherine Veihmeyer Hughes Estate and Gift Tax Attorney Advisor Office of Tax Policy Treasury Department 1500 Pennsylvania Avenue, NW, Room 4212B Washington, DC 20220 [email protected]

Re: IRS Notice 2008-116 and Notice 2008-32 – Extension of Interim Guidance on Section 67 Limitations on Estates and Non-Grantor Trusts for Bundled Investment Management and Advisory Costs

Dear Ms. Hughes:

The AICPA was appreciative that you and others at the Treasury Department and the Internal Revenue Service for promptly issuing interim guidance in 2008 under IRC section 67(e) in Notices 2008-32 and 2008-116 regarding the 2-percent floor on miscellaneous itemized deductions for estates and non-grantor trusts. We request that a similar notice be issued promptly applicable to 2009 tax returns that are in the preparation process now, as well as applicable to 2010 tax returns.

We appreciated the clarity and helpfulness of the 2008 guidance for taxpayers and practitioners who were in the process of preparing 2007 and 2008 tax returns, particularly regarding the need to unbundle. After the Supreme Court issued its decision in Knight v. CIR, S.Ct. Docket No. 06- 1286 (Jan. 16, 2008), many members were uncertain about the status of the proposed regulations and their requirement to unbundle fiduciary fees. We were pleased that Notices 2008-32 and 2008-116 were consistent with our interpretation that trustee fees for 2007 and 2008 did not need to be unbundled as expressed in our February 8, 2008 submission.

Taxpayers and practitioners need similar clarity for preparing their 2009 and 2010 tax returns. Indeed, we are receiving inquiries from practitioners preparing returns to be filed by April 15, and, therefore, as stated above, request that the Service promptly issue an additional notice for 2009 and 2010 tax years.

We look forward to continuing a dialogue with you and working with Treasury and the IRS to achieve clear, consistent, and prompt guidance in this area. We welcome the opportunity to discuss the need for the notice or to answer any questions you may have. I can be reached at (202) 879-4966, or [email protected]; or you may contact F. Gordon Spoor, Chair, AICPA Trust, Estate, and Gift Tax Technical Resource Panel, at (727) 343-7166, or [email protected]; or Eileen Sherr, AICPA Senior Technical Manager, at 202-434-9256, or [email protected]. Ms. Catherine Veihmeyer Hughes March 8, 2010 Page 2 of 2

Sincerely,

Alan Einhorn Chair, Tax Executive Committee cc: Ms. Jennifer N. Keeney, Attorney, Office of Associate Chief Counsel for Passthroughs and Special Industries, Internal Revenue Service