Senate Estate Tax Alternative Hearings Expected to Yield No Action

Last week, the Senate Finance Committee met to discuss "Alternatives to the Current Federal Estate Tax System". This was the second of three hearings scheduled. Issues surrounding the possible administrative burdens to the Internal Revenue Service and the role of government in estate taxation. Also discussed were the complaince with budgetary rules and precautions to a new estate taxation system. Members reviewed the accessions tax and comprehensive inheritance tax.

Despite adding amendments to the Senate budget resolution and these three scheduled hearings, experts believe that it is unlikely there will be any substantive movement on the estate tax issue this year. More likely, the issue could be addressed next year before the 2010 one year full repeal and reversion to pre-2001 law that would occur in 2011.