Posted: March 4, 2013

The IRS has proposed a new regulation that would impose a tax on "net investment income" of certain individuals, trusts and estates. As written, the new regulation could include qualified funeral trusts (QFT). The IRS invited organizations and individuals to offer comments on the proposed regulation; last week, NFDA submitted comments to Acting IRS Commissioner Steven Miller arguing that QFTs should be excluded from the proposed regulation.

The letter states, in part:

"We hope that you will agree that the Treasury Regulations under section 1411 should be revised to exempt QFTs... in order to preserve the important tax simplification measure ... for all Americans, especially those who are elderly or infirm. We also hope that, to the extent the [regulation] does apply to QFTs, you will ensure that the regulations do not impose [the] tax inaccurately on QFTs held in a master trust or other aggregate arrangement."

Click here for additional information about the proposed regulation.

Click here to read the letter NFDA sent to the IRS acting commissioner.