Ezel / IRS Rulings / 201402006
Chief Counsel Advice 201402006 Released January 10, 2014 Advice

Obsolete regulations did not change prior foreign-trust advice

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This page covers one taxpayer's ruling from 2014, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2014
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

The Chief Counsel advice revisits earlier email advice about how sections 6013(g) and 6677 interact. The earlier advice had stated that a nonresident alien was not subject to section 6048 reporting requirements and had cited two regulations as support. This memorandum explains that those regulations predate statutory changes to sections 6048, 6677, and 6039F and are effectively obsolete. It states that the cited regulations do not affect the conclusions reached in the earlier advice.

Ruling snapshot

  • Question: Do two older regulations still support or affect earlier advice about section 6048 reporting by a nonresident alien?
  • Outcome: Advice given
  • Key authorities: IRC §§ 6013(g), 6039F, 6048, 6677; Treas. Reg. §§ 16.3-1, 404.6048-1

Full text (IRS public release)

ID: CCA_2013062613250246
Office: -------------
UILC: 6048.00-00
Number: 201402006
Release Date: 1/10/2014
From: ---------------------
Sent: Wednesday, June 26, 2013 1:25:03 PM
To: -----------------------------------------------
Cc: ------------------
Subject: February 14th Advice

On February 14, 2013, you received email advice concerning the interaction between sections 6013(g)
and 6677. In that advice, we stated that "it is our understanding that a nonresident alien is not subject to
section 6048 reporting requirements." As support for this proposition we cited two regs. - Treas. Reg.
16.3-1 and Treas. Reg. 404.6048-1. It has since come to our attention that reliance on those specific
regs is inappropriate because they are effectively obsolete.

The regs cited predate the 1996 changes to section 6048 and 6677 and have no relevance today. Reg.
16.3-1 predates statutory rules under sections 6048(b), 6048(c), and 6039F. Reg. 404.6048-1
implemented a rule that doesn't exist anymore. Under a pending reg project, those regs will be declared
obsolete and removed from the CFR.

We are sending this email only to advise you that those regs are now obsolete. We stand by the
conclusions reached in that email and do not believe that this information has any effect on those
conclusions.

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