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Senate Finance Committee Chairman Baucus tells BNA it is increasingly unlikely that the estate tax will be reinstated retroactively to the start of 2010, but says lawmakers could permit heirs with modest inheritances to elect to benefit from stepped-up basis rules and other expired provisions. “Practically speaking, the later that we take up and pass the estate tax law or provision, the more difficult it is to make it retroactive. However, it's possible there could be an election for the executor which would, in effect, make that question moot,” he says.
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