Modified Carryover Basis Guidance Tops Estate Tax Officials' Agenda

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Treasury Department and IRS officials say that they are hard at work on guidance that will help to clarify some of the issues pertaining to modified carryover basis that have cropped up as practitioners try to administer decedents' estates in the absence of an estate tax. Because there are so many difficult issues attached to it, they say they have given up projecting a time frame for its arrival. Prime among the questions to be answered is how to implement the modified basis carryover rules dictated by the Economic Growth and Tax Relief Reconciliation Act of 2001.