AICPA Suggests That IRS Publish CRAT, CRUT Safe Harbor Guidance in Proposed Form

March 16, 2006

The Honorable Mark W. Everson
Commissioner, Internal Revenue Service
Courier's Desk
1111 Constitution Avenue, NW
Washington, DC 20044

Dear Commissioner Everson:

On behalf of the American Institute of Certified Public Accountants, we are writing to express our appreciation that the Service has responded to our concerns -- as described in our attached June 8, 2005, letter -- about the spousal waiver requirement for charitable remainder trusts in Rev. Proc 2005-24, 2005-16 I.R.B. 909, and has suspended this requirement by issuing Notice 2006-15, 2006-8 I.R.B. 1. We also appreciate that the Service and Treasury Department adopted our recommendation to apply the Rev. Proc. 2005-24 safe harbor for trusts created prior to June 28, 2005, to all charitable remainder trusts regardless of creation date, at least while the issue is being studied further. Because a spousal waiver requirement could potentially affect all charitable remainder trusts, we suggest that any future guidance in this area be published in proposed form, thereby allowing practitioners an opportunity to comment on its feasibility before it becomes effective.

The AICPA is the national, professional association of CPAs, with approximately 350,000 members, including CPAs in business and industry, public practice, government, and education; student affiliates; and international associates. Our members advise clients on federal, state, and international tax matters, and prepare income and other tax returns for millions of Americans. Our members provide services to individuals, not-for-profit organizations, small and medium-sized businesses, as well as America's largest businesses.

We welcome the opportunity to meet with you to discuss potential proposed solutions, our thoughts, experiences and comments further with you or others at the IRS and Treasury Department. Please contact me at (402) 280-2062, or tpurcell@creighton.edu; Steve Thorne, Chair of the AICPA Trust, Estate, and Gift Tax Technical Resource Panel, at (312) 486-9847, or stethorne@deloitte.com; Russell Sanders, Chair of the CRT Task Force, at (410) 454-5979 or russell.t.sanders@citigroup.com; or Eileen Sherr, AICPA Technical Manager at (202) 434-9256, or esherr@aicpa.org.

cc:

Eric Solomon, Acting Assistant Secretary (Tax Policy) and Deputy
Assistant Secretary -- Regulatory Affairs, Treasury Department, Room
3104 MT (fax 202-622-0605)

Donald L. Korb, Chief Counsel, IRS, Room 3026 IR (fax 202-622-4277)

Heather C. Maloy, Associate Chief Counsel -- Passthroughs & Special
Industries, IRS, Room 5300 IR (fax 202-622-4524)

Catherine V. Hughes, Attorney Adviser, Tax Legislative Counsel,
Treasury Department, Room 4212 MT (fax 202-622-9260)

Susan Hurwitz Levy, Attorney, IRS Branch 4 (CC:PSI:B04), Room 5430 IR
(fax 202-622-4451)

Bradford R. Poston, Attorney, IRS, Branch 2 (CC:PSI:BR02), Room 5013
IR (fax 202-622-4524)