IRS moves QDOT bond filings out of the estate tax return

Treasury finalized regulations updating the qualified domestic trust rules under section 2056A, analyzed by Ed Zollars at Current Federal Tax Developments. The regulations became effective July 10. A QDOT allows a noncitizen surviving spouse to take the federal estate tax marital deduction. Under the change, a QDOT bond or letter of credit is no longer filed with Form 706 or Form 706-NA. It goes instead to the Estate Tax Advisory Group at the address given in Publication 4235. The regulations also rewrite the definition of finally determined in Treas. Reg. section 20.2056A-2(d)(1)(iii), reflecting the June 2015 decision to stop routinely issuing estate tax closing letters. Designated authority now reads Chief Tax Compliance Officer. Proposed rules dated to August 2024. Treasury described the package as updating outdated references and procedures.