SECTION 3. SCOPE

.01 This revenue procedure treats as void QTIP elections made in cases where all of the following requirements are satisfied:

(1) The estate’s federal estate tax liability was zero, regardless of the QTIP election, based on values as finally determined for federal estate tax purposes, thus making the QTIP election unnecessary to reduce the federal estate tax liability;

(2) The executor of the estate neither made nor was considered to have made the portability election as provided in § 2010(c)(5)(A) and the regulations thereunder; and

Bulletin No. 2016–42 463 October 17, 2016

(3) The requirements of section 4.02 of this revenue procedure are satisfied.

.02 This revenue procedure does not treat as void QTIP elections made to treat property as QTIP in cases where:

(1) A partial QTIP election was required with respect to a trust to reduce the estate tax liability and the executor made the election with respect to more trust property than was necessary to reduce the estate tax liability to zero;

(2) A QTIP election was stated in terms of a formula designed to reduce the estate tax to zero. See, for example, § 20.2056(b)– 7(h), Examples 7 and 8 ; (3) The QTIP election was a protective election under § 20.2056(b)–7(c);

(4) The executor of the estate made a portability election in accordance with § 2010(c)(5)(A) and the regulations thereunder, even if the decedent’s DSUE amount was zero based on values as finally determined for federal estate tax purposes; or

(5) The requirements of section 4.02 of this revenue procedure are not satisfied.

.03 The procedures described in section 4 of this revenue procedure must be used in lieu of requesting a letter ruling under the provisions of Rev. Proc. 2016–1, 2016–1 I.R.B. 1 (or its successors). Accordingly, user fees do not apply to corrective action under this revenue procedure.

.04 QTIP elections for which relief has been granted under the procedures of Rev. Proc. 2001–38 are not within the scope of this revenue procedure.