Tax Type
Estate Tax
Description
Generation skipping
Topic
Persons Subject to Tax
Date Issued
11-02-1993
November 2, 1993
Re: Ruling Request: Generation Skipping Tax
Dear*************
This will reply to your letter dated August 9, 1993, requesting an abatement of Virginia generation skipping transfer ("GST") tax assessed against the********** (the "Taxpayer").
FACTS
The Taxpayer paid the federal and Virginia estate taxes due on the estate and, prior to a Departmental audit, claimed to be entitled to a refund of *********** as a result of an estate tax overpayment.
Several of the beneficiaries are "skip persons" (individuals two or more generations below the transferor) as defined by the Internal Revenue Code ("I.R.C."). Therefore, the Taxpayer paid federal GST tax on property that had been included in the taxable estate subject to the estate tax. As a result of an audit, the Taxpayer was assessed GST tax by the Department. The Taxpayer is asking the Department to abate the assessment.
RULING
I recently issued a ruling which held that Virginia's Generation-Skipping Transfer Tax may not be imposed on "direct skip" transfers. Enclosed you will find a copy of Public Document ("PD") 93-193 which is determinative of the issues addressed in your ruling request.
Pursuant to PD 93-193, the assessment of GST tax by the Department was incorrect and is abated. A refund in the amount of*************plus the appropriate interest, will be issued to the Taxpayer in due course.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/7229L
Related Documents
Rulings of the Tax Commissioner