Resources on Rev. Rul. 2023-2

While discussing Revenue Ruling 2023-2, a colleague made the following request: "Please send me the link to the Blattmachr article. He’s written so much I’m not sure which one to look at."

Below, you will find a link to Blattmachr's article. You will also find other articles that discuss Rev. Rul. 2023-2. Alan Gassman's article in Forbes is particularly noteworthy because it provides background on the debate that prompted the revenue ruling.

Here are some resources on Rev. Rul. 2023-2:

• Jonathan G. Blattmachr, Mitchell M. Gans & Hugh H. Jacobson, Income Tax Effects of Termination of Grantor Trust Status by Reason of the Grantor's Death, Journal of Taxation, Sept. 2002.
• Jeffrey Pennell, Basis of Grantor Trust Assets Before the Grantor's Death, Jan. 20, 2019 (SSRN link) ("The government’s Priority Guidance Plan includes an item whether §1014 new-basis-at-death should apply when the status of a grantor trust changes at the grantor’s death. The unstated assumption appears to be that assets transferred from a grantor to the grantor’s trust will have a carryover of the grantor’s basis prior to the grantor’s death. This essay addresses that notion, and whether a grantor’s transfer of assets into a grantor trust in what purports to be a sale or exchange transaction (that is, not a gift) causes the trust to instead have a basis equal to fair market value rather than a carryover basis. The shocking reality is that this question is not clearly addressed in the Code or Regulations, nor by jurisprudence, leaving unresolved the proper application of the basis rules and spawning no small amount of abuse or aggressive transactions.").
• Griffin Bridgers, Step-Up in Basis for Assets in a Grantor Trust: The Mystery is Solved?, State of Estates, March 30, 2023 ("This is not a surprising analysis, and in my opinion the Service got it right. . . . Of course, it should be noted that this is just a statement of the Service’s position. . . . However, this does not mean that the Tax Court or some other court would agree. So, if you or a client has the stomach for it, perhaps you can press the issue.").
• John Manganaro, What the Latest IRS Ruling Means for Trusts, Think Advisor, March 31, 2023.
• Martha Waggoner, No basis step-up for grantor trust assets if not in grantor's estate, Journal of Accountancy, March 31, 2023.
• David K. Walser, Rev. Rul. 2023-2: IRS Drops the Ball on Grantor Trust Guidance, LinkedIn, April 4, 2023.
• IRS rules on basis adjustment for assets in grantor trust that were not in decedent's gross estate, Ernst & Young, April 4, 2023: Reviews the facts, rules, application of the rules, and conclusion of Rev. Rul. 2023-2, and then it gives the implications of the revenue ruling. Specifically, it discusses that practitioners can no longer point to PLR 201245006 (which applied IRC § 1014 to foreign grantor trusts) to take a position that assets in a defective grantor trust receive a basis step-up under IRC § 1014(b)(9)(C).
• Sandra D. Glazier, No Basis Adjustments for Assets in Irrevocable Grantor Trusts, Weatlh Management, April 5, 2023.
• Alan Gassman, Revenue Ruling 2023-2 Got It Wrong? The Case For A Stepped-Up Basis When The Grantor Dies, Forbes, April 7, 2023.
• The IRS Puts Its Stake in the Ground with Respect to Step Up in Basis on Grantor Trusts Not Included in Taxable Estate, Cummings & Lockwood LLC, April 7, 2023.
• Paul Hood On Revenue Ruling 2023-2: No Basis Adjustment Under IRC Section 1014 for Property in a Grantor Trust Not Otherwise Includible in the Decedent's Gross Estate, Steve Leimberg's Income Tax Planning Newsletter, April 10, 2023.
• Louis Vlahos, The Federal Attack on Grantor Trusts: The Demise of Basis Step-Up at Death?, taxslaw.com, April, 11, 2023.
• IRS Issues Guidance on Basis for Assets in a Grantor Trust, Meltzer Lippe, April 14, 2023.
• David Choyne & Steven Saraisky, IRS Issues Revenue Ruling Holding that Assets Held in an Irrevocable Grantor [Trust] Do Not Receive a Step-Up in Basi[s] at Death, JD Supra, April 13, 2023 ("It is the author’s opinion . . . that most practitioners already were treating assets held in an irrevocable grantor trust as not receiving a step-up in income tax basis upon the grantor’s death, which is consistent with the new Revenue Ruling provides.").
• Baker McKenzie, United States: IRS guidance on irrevocable trusts - what does it mean for US and non-US persons?, April 14, 2023.
• IRS rules trust property not included in estate is not eligible for basis adjustment, PWC, April 17, 2023 ("This Ruling should not change tax treatment for most taxpayers.").
• IRS rules no basis step-up at death for grantor trust property, Grant Thornton, April 25, 2023.
• IRS Issues Rev. Rul. 2023-2: No Step-Up in Basis for Assets Held in an Irrevocable Grantor Trust, Prudential, May 2023.
• IRS Issues Rev. Rul. 2023-2: No Step-Up in Basis for Assets Held in an Irrevocable Grantor Trust, Prudential, May 2023.
• Summit Financial, IRS: Gifts to Irrevocable Grantor Trust Will Not Receive Basis Step-Up At Death, Advisor Hub, May 1, 2023.
• Alan Gassman, YouTube: Revenue Ruling 2023-02, May 5, 2023: Martin M. Shenkman is also in the video.
• Editorial Staff, IRS Guidance on Irrevocable Trusts May Force Re-think -- Law Firm, Family Wealth Report, May 5, 2023.
• Eric N. Mann & Jacob H. Calvert, IRS confirms that completed gifts to grantor trusts are not eligible for Section 1014 step-up, Reuters, June 21, 2023.
• Lindsay N. Graves, IRS Quietly Change the Rules on Your Children's Inheritance, Kiplinger, July 4, 2023.
• Lloyd Lofton, Is Revenue Ruling 2023-2 a hindrance or an opportunity?, July 12, 2023: "I have a different view. The IRS Rev. Rule 2023-2 . . . is a reason for prior clients and future prospects to meet with you."
• The IRS has issued a Ruling that will impact Grantor Trusts, Texas Trust Law, July 18, 2023.
• Cynthia Griffin, New IRS ruling will not impact majority of trusts, The News-Enterprise, July 22, 2023.
• Martin Dasko, Taxes on Generational Wealth Just Changed: Here's What You Should Know, GO Banking Rates, Aug. 6, 2023 (Apple News link): Hani's thoughts: Unfortunately, this article isn't good because it doesn't distinguish irrevocable trusts that aren't included in the grantor's gross estate for federal estate tax purposes (which the revenue ruling addresses) and those that typically are (such as Medicaid qualifying trusts).

Preview of Hani's Writeup for Rev. Rul 2023-2