SECTION 5. AREAS UNDER

STUDY IN WHICH RULINGS OR DETERMINATION LETTERS WILL NOT BE ISSUED UNTIL THE SERVICE RESOLVES THE ISSUE THROUGH PUBLICATION OF A REVENUE RULING, A REVENUE PROCEDURE, REGULATIONS, OR OTHERWISE

.01 Specific Questions and Problems. (1) Sections 302 and 304.—Distributions in Redemption of Stock; Redemption Through Use of Related Corporations.—Treatment of basis in a § 302 or § 304 redemption. See Withdrawal of Notice of Proposed Rulemaking published in the Federal Register (84 FR 11686) on March 28, 2019.

(2) Sections 351, 358, and 362.— Transfer to Corporation Controlled by Transferor; Basis to Distributees; Basis to Corporations.—The issues described as being under study in Rev. Rul. 2006-2, 2006-1 C.B. 261. (3) Section 401.—Qualified Pension, Profit-Sharing, and Stock Bonus Plans.— Whether a program providing a limited period during which certain retirees who are currently receiving lifetime annuity payments from a qualified pension plan may elect to convert their annuities into lump sums that are payable immediately (sometimes referred to as a “retiree lumpsum window”) complies with the qualification requirements under § 401. See Notice 2019-18, 2019-13 I.R.B. 915, Part III, which provides that the IRS will not issue private letter rulings with regard to retiree lump-sum windows. However, if a taxpayer is eligible to apply for and receive a determination letter, the IRS will no longer include a caveat expressing no opinion regarding the tax consequences of such a window in the letter. See Rev. Proc. 2025-4, this Bulletin, for the procedures that apply to requests for determination letters under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division, Employee Plans Rulings and Agreements.

(4) Section 613A.—Limitations on Percentage Depletion in Case of Oil and Gas Wells.—Whether the sale of oil or gas, or any product derived from oil or gas, is a bulk sale for purposes of § 613A(d)(2).

(5) Sections 661 and 662.—Deduction for Estates and Trusts Accumulating

Bulletin No. 2025–1 155 December 30, 2024

Income or Distributing Corpus; Inclusion of Amounts in Gross Income of Beneficiaries of Estates and Trusts Accumulating Income or Distributing Corpus.—Whether the distribution of property by a trustee from an irrevocable trust to another irrevocable trust (sometimes referred to as a “decanting”) resulting in a change in beneficial interests is a distribution for which a deduction is allowable under § 661 or which requires an amount to be included in the gross income of any person under § 662.

(6) Section 671.—Trust Income, Deductions, and Credits Attributable to Grantors and Others as Substantial Owners.—Whether the grantor will be considered the owner of any portion of a transfer in trust under §§ 673 to 677 that is purported to be an incomplete gift under § 2511, specifically including, but not limited to, a transfer to a trust providing for distributions at the direction of a committee to the donor and the committee members either by unanimous consent of the committee members or a majority of the committee members with the consent of the donor.

(7) Section 678.—Person Other than Grantor Treated as Substantial Owner.— Whether the beneficiaries of a trust will be considered the owners of any portion of such trust when two or more of such beneficiaries have the power to distribute income or principal to themselves by unanimous consent.

(8) Section 1014.—Basis of Property Acquired from a Decedent.—Whether the assets in a grantor trust receive a § 1014 basis adjustment at the death of the deemed owner of the trust for income tax purposes when those assets are not includible in the gross estate of that owner under chapter 11 of subtitle B of the Internal Revenue Code.

(9) Section 1202.—Partial Exclusion for Gain from Certain Small Business Stock.—Whether a corporation meets the active business requirement under § 1202(e).

(10) Section 2036.—Transfers with Retained Life Estate.—Whether the corpus of a trust will be included in a grantor’s estate when the trustee of the trust is a private trust company owned partially or entirely by members of the grantor’s family.

(11) Section 2038.—Revocable Transfers.—Whether the corpus of a trust will be included in a grantor’s estate when the trustee of the trust is a private trust company owned partially or entirely by members of the grantor’s family.

(12) Section 2041.—Powers of Appointment.—Whether the corpus of a trust will be included in an individual’s estate when the trustee of the trust is a private trust company owned partially or entirely by members of the individual’s family.

(13) Sections 2041 and 2514.—Powers of Appointment.—Whether the beneficiaries of a trust hold general powers of appointment over any portion of a transfer to a trust when (i) two or more of such beneficiaries have the power to distribute income or principal to themselves by unanimous consent and without the consent of the donor, and either (ii) such beneficiaries must be replaced upon the lapse of their powers as the result of death or otherwise or (iii) all of such beneficiaries’ powers described by (i) lapse upon the death of any one of the beneficiaries.

(14) Section 2501.—Imposition of Tax.—Whether the distribution of property by a trustee from an irrevocable trust to another irrevocable trust (sometimes referred to as a “decanting”) resulting in a change in beneficial interests is a gift under § 2501.

(15) Section 2511.—Transfers in General.—Whether a transfer in trust that is purported not to be considered owned by the grantor under § 671 is an incomplete gift, specifically including, but not limited to, a transfer to a trust providing for distributions at the direction of a committee to the donor and the committee members either by unanimous consent of the committee members or a majority of the committee members with the consent of the donor.

(16) Section 2514.—See section 5.01(13), above. (17) Sections 2601 and 2663.—Tax Imposed; Regulations.—Whether the distribution of property by a trustee from an irrevocable generation-skipping transfer tax (GST) exempt trust to another irrevocable trust (sometimes referred to as a “decanting”) resulting in a change in beneficial interests causes the loss of GST exempt status or constitutes a taxable

termination or taxable distribution under § 2612.

(18) Sections 4966 and 4967.—Taxes on Taxable Distributions; Taxes on Prohibited Benefits.—Issues involving interpretation of §§ 4966 and 4967 regarding distributions from donor advised funds.

.02 General Areas. Any issue involving the application of a provision of the Code to the extent of any amendment made by Public Law 117169, 136 Stat. 1818 (August 16, 2022), commonly referred to as the Inflation Reduction Act of 2022. The Service may provide general information in response to an inquiry prior to the resolution of the issue.