I.R.C. § 2055(a) In General —
For purposes of the tax imposed by section 2001, the value of the taxable
estate shall be determined by deducting from the value of the gross
estate the amount of all bequests, legacies, devises, or transfers—
I.R.C. § 2055(a)(1) —
to or for the use of the United
States, any State, any political subdivision thereof, or the District
of Columbia, for exclusively public purposes;
I.R.C. § 2055(a)(2) —
to or for the use of any corporation
organized and operated exclusively for religious, charitable, scientific,
literary, or educational purposes, including the encouragement of
art, or to foster national or international amateur sports competition
(but only if no part of its activities involve the provision of athletic
facilities or equipment), and the prevention of cruelty to children
or animals, no part of the net earnings of which inures to the benefit
of any private stockholder or individual, which is not disqualified
for tax exemption under section 501(c)(3) by
reason of attempting to influence legislation, and which does not
participate in, or intervene in (including the publishing or distributing
of statements), any political campaign on behalf of (or in opposition
to) any candidate for public office;
I.R.C. § 2055(a)(3) —
to a trustee or trustees, or a fraternal
society, order, or association operating under the lodge system,
but only if such contributions or gifts are to be used by such trustee
or trustees, or by such fraternal society, order, or association,
exclusively for religious, charitable, scientific, literary, or educational
purposes, or for the prevention of cruelty to children or animals,
such trust, fraternal society, order, or association would not be
disqualified for tax exemption under section 501(c)(3) by reason of attempting
to influence legislation, and such trustee or trustees, or such fraternal
society, order, or association, does not participate in, or intervene
in (including the publishing or distributing of statements), any
political campaign on behalf of (or in opposition to) any candidate
for public office;
I.R.C. § 2055(a)(4) —
to or for the use of any veterans'
organization incorporated by Act of Congress, or of its departments
or local chapters or posts, no part of the net earnings of which
inures to the benefit of any private shareholder or individual; or
I.R.C. § 2055(a)(5) —
to an employee stock ownership plan
if such transfer qualifies as a qualified gratuitous transfer of
qualified employer securities within the meaning of section 664(g).
For purposes of this subsection, the complete termination
before the date prescribed for the filing of the estate tax return
of a power to consume, invade, or appropriate property for the benefit
of an individual before such power has been exercised by reason of
the death of such individual or for any other reason shall be considered
and deemed to be a qualified disclaimer with the same full force
and effect as though he had filed such qualified disclaimer. Rules
similar to the rules of section 501(j) shall
apply for purposes of paragraph (2).
I.R.C. § 2055(b) Powers Of Appointment —
Property includible in the decedent's gross estate
under section 2041 (relating
to powers of appointment) received by a donee described in this section
shall, for purposes of this section, be considered a bequest of such
decedent.
I.R.C. § 2055(c) Death Taxes Payable Out Of Bequests —
If the tax imposed by section 2001, or any estate, succession,
legacy, or inheritance taxes, are, either by the terms of the will,
by the law of the jurisdiction under which the estate is administered,
or by the law of the jurisdiction imposing the particular tax, payable
in whole or in part out of the bequests, legacies, or devises otherwise
deductible under this section, then the amount deductible under this
section shall be the amount of such bequests, legacies, or devises
reduced by the amount of such taxes.
I.R.C. § 2055(d) Limitation On Deduction —
The amount of the deduction under this section for
any transfer shall not exceed the value of the transferred property
required to be included in the gross estate.
I.R.C. § 2055(e) Disallowance Of Deductions In Certain Cases
I.R.C. § 2055(e)(1) —
No deduction shall be allowed under
this section for a transfer to or for the use of an organization
or trust described in section 508(d) or 4948(c)(4) subject to the
conditions specified in such sections.
I.R.C. § 2055(e)(2) —
Where an interest in property (other
than an interest described in section 170(f)(3)(B)) passes or
has passed from the decedent to a person, or for a use, described
in subsection (a),
and an interest (other than an interest which is extinguished upon
the decedent's death) in the same property passes or has passed (for
less than an adequate and full consideration in money or money's
worth) from the decedent to a person, or for a use, not described
in subsection (a),
no deduction shall be allowed under this section for the interest
which passes or has passed to the person, or for the use, described
in subsection (a) unless—
I.R.C. § 2055(e)(2)(A) —
in the case of a remainder interest,
such interest is in a trust which is a charitable remainder annuity
trust or a charitable remainder unitrust (described in section 664) or a pooled income fund (described
in section 642(c)(5)),
or
I.R.C. § 2055(e)(2)(B) —
in the case of any other interest,
such interest is in the form of a guaranteed annuity or is a fixed
percentage distributed yearly of the fair market value of the property
(to be determined yearly).
I.R.C. § 2055(e)(3) Reformations To Comply With Paragraph (2)
I.R.C. § 2055(e)(3)(A) In General —
A deduction shall be allowed under subsection (a) in respect of any qualified
reformation.
I.R.C. § 2055(e)(3)(B) Qualified Reformation —
For purposes of this paragraph, the term “qualified
reformation” means a change of a governing instrument by reformation,
amendment, construction, or otherwise which changes a reformable
interest into a qualified interest but only if—
I.R.C. § 2055(e)(3)(B)(i) —
any difference between—
I.R.C. § 2055(e)(3)(B)(i)(I) —
the actuarial value (determined
as of the date of the decedent's death) of the qualified interest,
and
I.R.C. § 2055(e)(3)(B)(i)(II) —
the actuarial value (as so determined)
of the reformable interest,
does not exceed 5 percent of the
actuarial value (as so determined) of the reformable interest,
I.R.C. § 2055(e)(3)(B)(ii) —
in the case of—
I.R.C. § 2055(e)(3)(B)(ii)(I) —
a charitable remainder interest,
the nonremainder interest (before and after the qualified reformation)
terminated at the same time, or
I.R.C. § 2055(e)(3)(B)(ii)(II) —
any other interest, the reformable
interest and the qualified interest are for the same period, and
I.R.C. § 2055(e)(3)(B)(iii) —
such change is effective as of the
date of the decedent's death.
A nonremainder interest (before reformation) for a term
of years in excess of 20 years shall be treated as satisfying subclause
(I) of
clause (ii) if
such interest (after reformation) is for a term of 20 years.
I.R.C. § 2055(e)(3)(C) Reformable Interest —
For purposes of this paragraph—
I.R.C. § 2055(e)(3)(C)(i) In General —
The term “reformable interest” means any interest
for which a deduction would be allowable under subsection (a) at the time of the decedent's
death but for paragraph (2).
I.R.C. § 2055(e)(3)(C)(ii) Beneficiary's Interest Must Be Fixed —
The term “reformable interest” does not include any
interest unless, before the remainder vests in possession, all payments
to persons other than an organization described in subsection (a) are expressed either in
specified dollar amounts or a fixed percentage of the fair market
value of the property. For purposes of determining whether all such
payments are expressed as a fixed percentage of the fair market value
of the property, section 664(d)(3) shall
be taken into account.
I.R.C. § 2055(e)(3)(C)(iii) Special Rule Where Timely Commencement Of Reformation —
Clause (ii) shall
not apply to any interest if a judicial proceeding is commenced to
change such interest into a qualified interest not later than the
90th day after—
I.R.C. § 2055(e)(3)(C)(iii)(I) —
if an estate tax return is required
to be filed, the last date (including extensions) for filing such
return, or
I.R.C. § 2055(e)(3)(C)(iii)(II) —
if no estate tax return is required
to be filed, the last date (including extensions) for filing the
income tax return for the 1st taxable year for which such a return
is required to be filed by the trust.
I.R.C. § 2055(e)(3)(C)(iv) —
Special rule for will executed before
January 1, 1979, etc.--In the case of any interest passing under
a will executed before January 1, 1979, or under a trust created
before such date, clause (ii)
shall not apply.
I.R.C. § 2055(e)(3)(D) Qualified Interest —
For purposes of this paragraph, the term “qualified
interest” means an interest for which a deduction is allowable under
subsection (a).
I.R.C. § 2055(e)(3)(E) Limitation —
The deduction referred to in subparagraph (A) shall
not exceed the amount of the deduction which would have been allowable
for the reformable interest but for paragraph (2).
I.R.C. § 2055(e)(3)(F) Special Rule Where Income Beneficiary Dies —
If (by reason of the death of any individual, or by
termination or distribution of a trust in accordance with the terms
of the trust instrument) by the due date for filing the estate tax
return (including any extension thereof) a reformable interest is
in a wholly charitable trust or passes directly to a person or for
a use described in subsection (a),
a deduction shall be allowed for such reformable interest as if it
had met the requirements of paragraph (2) on the date of the decedent's
death. For purposes of the preceding sentence, the term “wholly charitable
trust” means a charitable trust which, upon the allowance of a deduction,
would be described in section 4947(a)(1).
I.R.C. § 2055(e)(3)(G) Statute Of Limitations —
The period for assessing any deficiency of any tax
attributable to the application of this paragraph shall not expire
before the date 1 year after the date on which the Secretary is notified
that such reformation (or other proceeding pursuant to subparagraph
(J)) has occurred.
I.R.C. § 2055(e)(3)(H) Regulations —
The Secretary shall prescribe such regulations as may
be necessary to carry out the purposes of this paragraph, including
regulations providing such adjustments in the application of the
provisions of section 508 (relating
to special rules relating to section 501(c)(3) organizations),
subchapter J (relating to estates, trusts, beneficiaries, and decedents),
and chapter 42 (relating to private foundations) as may be necessary
by reason of the qualified reformation.
I.R.C. § 2055(e)(3)(I) Reformations Permitted In Case Of Remainder Interests In Residence
Or Farm, Pooled Income Funds, Etc. —
The Secretary shall prescribe regulations (consistent
with the provisions of this paragraph) permitting reformations in
the case of any failure—
I.R.C. § 2055(e)(3)(I)(i) —
to meet the requirements of section 170(f)(3)(B) (relating
to remainder interests in personal residence or farm, etc.), or
I.R.C. § 2055(e)(3)(I)(ii) —
to meet the requirements of section
642(c)(5).
I.R.C. § 2055(e)(3)(J) Void Or Reformed Trust In Cases Of Insufficient Remainder Interests —
In the case of a trust that would qualify (or could
be reformed to qualify pursuant to subparagraph (B)) but for failure
to satisfy the requirement of paragraph (1)(D) or (2)(D) of section 664(d), such trust may be—
I.R.C. § 2055(e)(3)(J)(i) —
declared null and void ab initio,
or
I.R.C. § 2055(e)(3)(J)(ii) —
changed by reformation, amendment,
or otherwise to meet such requirement by reducing the payout rate
or the duration (or both) of any noncharitable beneficiary's interest
to the extent necessary to satisfy such requirement,
pursuant to a proceeding that is commenced within the
period required in subparagraph (C)(iii). In a case described in
clause (i), no deduction shall be allowed under this title for any
transfer to the trust and any transactions entered into by the trust
prior to being declared void shall be treated as entered into by
the transferor.
I.R.C. § 2055(e)(4) Works Of Art And Their Copyrights Treated As Separate Properties
In Certain Cases
I.R.C. § 2055(e)(4)(A) In General —
In the case of a qualified contribution of a work of
art, the work of art and the copyright on such work of art shall
be treated as separate properties for purposes of paragraph (2).
I.R.C. § 2055(e)(4)(B) Work Of Art Defined —
For purposes of this paragraph, the term “work of art"
means any tangible personal property with respect to which there
is a copyright under Federal law.
I.R.C. § 2055(e)(4)(C) Qualified Contribution Defined —
For purposes of this paragraph, the term “qualified
contribution” means any transfer of property to a qualified organization
if the use of the property by the organization is related to the
purpose or function constituting the basis for its exemption under
section 501.
I.R.C. § 2055(e)(4)(D) Qualified Organization Defined —
For purposes of this paragraph, the term “qualified
organization” means any organization described in section 501(c)(3) other than a private
foundation (as defined in section 509).
For purposes of the preceding sentence, a private operating foundation
(as defined in section 4942(j)(3))
shall not be treated as a private foundation.
I.R.C. § 2055(e)(5) Contributions To Donor Advised Funds —
A deduction otherwise allowed under
subsection (a)
for any contribution to a donor advised fund (as defined in section
4966(d)(2))
shall only be allowed if—
I.R.C. § 2055(e)(5)(A) —
the sponsoring organization (as defined
in section 4966(d)(1))
with respect to such donor advised fund is not—
I.R.C. § 2055(e)(5)(A)(i) —
described in paragraph (3) or (4) of subsection (a), or
I.R.C. § 2055(e)(5)(A)(ii) —
a type III supporting organization
(as defined in section 4943(f)(5)(A))
which is not a functionally integrated type III supporting organization
(as defined in section 4943(f)(5)(B)),
and
I.R.C. § 2055(e)(5)(B) —
the taxpayer obtains a contemporaneous
written acknowledgment (determined under rules similar to the rules
of section 170(f)(8)(C))
from the sponsoring organization (as so defined) of such donor advised
fund that such organization has exclusive legal control over the
assets contributed.
I.R.C. § 2055(f) Special Rule For Irrevocable Transfers Of Easements In Real
Property —
A deduction shall be allowed under subsection (a) in respect of any transfer
of a qualified real property interest (as defined in section 170(h)(2)(C)) which meets
the requirements of section 170(h) (without
regard to paragraph (4)(A) thereof).
I.R.C. § 2055(g) Cross References
I.R.C. § 2055(g)(1) —
For option as to time for valuation
for purpose of deduction under this section, see section 2032.
I.R.C. § 2055(g)(2) —
For treatment of certain organizations
providing child care, see section 501(k).
I.R.C. § 2055(g)(3) —
For exemption of gifts and bequests
to or for the benefit of Library of Congress, see section 5 of the
Act of March 3, 1925, as amended (2
U.S.C. 161).
I.R.C. § 2055(g)(4) —
For treatment of gifts and bequests
for the benefit of the Naval Historical Center as gifts or bequests
to or for the use of the United States, see section 8622 of title
10, United States Code.
I.R.C. § 2055(g)(5) —
For treatment of gifts and bequests
to or for the benefit of National Park Foundation as gifts or bequests
to or for the use of the United States, see section 8 of the Act
of December 18, 1967 (16 U.S.C.
191).
I.R.C. § 2055(g)(6) —
For treatment of gifts, devises,
or bequests accepted by the Secretary of State, the Director of the
International Communication Agency, or the Director of the United
States International Development Cooperation Agency as gifts, devises,
or bequests to or for the use of the United States, see section 25
of the State Department Basic Authorities Act of 1956.
I.R.C. § 2055(g)(7) —
For treatment of gifts or bequests
of money accepted by the Attorney General for credit to “Commissary
Funds, Federal Prisons,” as gifts or bequests to or for the use of
the United States, see section 4043 of title 18, United States Code.
I.R.C. § 2055(g)(8) —
For payment of tax on gifts and
bequests of United States obligations to the United States, see section
3113(e) of title 31, United States Code.
I.R.C. § 2055(g)(9) —
For treatment of gifts and bequests
for benefit of the Naval Academy as gifts or bequests to or for the
use of the United States, see section 8473 of title 10, United States
Code.
I.R.C. § 2055(g)(10) —
For treatment of gifts and bequests
for benefit of the Naval Academy Museum as gifts or bequests to or
for the use of the United States, see section 8474 of title 10, United
States Code.
I.R.C. § 2055(g)(11) —
For exemption of gifts and bequests
received by National Archives Trust Fund Board, see section 2308
of title 44, United States Code.
I.R.C. § 2055(g)(12) —
For treatment of gifts and bequests
to or for the use of Indian tribal governments (or their subdivisions),
see section 7871.
(Aug. 16, 1954, ch. 736, 68A Stat. 390; Aug. 6, 1956,
ch. 1020, 1, 70 Stat. 1075;
Sept. 2, 1958, Pub. L. 85-866,
title I, 30(d), 72 Stat. 1631;
Dec. 30, 1969, Pub. L. 91-172,
title II, 201(d)(1), (4)(A), 83 Stat.
560, 561; Dec. 31, 1970, Pub.
L. 91-614, title I, 101(c), 84
Stat. 1836; Oct. 26, 1974, Pub.
L. 93-483, 3(a), 88 Stat.
1457; Oct. 4, 1976, Pub.
L. 94-455, title XIII, 1304(a), 1307(d)(1)(B)(ii),
(C), 1313(b)(2), title XIX, 1902(a)(4), (12)(A), 1906(b)(13)(A),
title XX, 2009(b)(4)(B), (C), title XXI, 2124(e)(2), 90 Stat. 1715, 1727, 1730, 1804, 1805,
1834, 1894, 1919; Nov. 6, 1978, Pub.
L. 95-600, title V, 514(a), 92 Stat. 2883; Apr. 1, 1980, Pub. L. 96-222, title I, 105(a)(4)(A), 94 Stat. 219; Oct. 17, 1980, Pub. L. 96-465, title II, 2206(e)(4), 94 Stat. 2163; Dec. 28, 1980, Pub. L. 96-605, title III, 301(a), 94 Stat. 3530; Aug. 13, 1981, Pub. L. 97-34, title IV, 423(a), 95 Stat. 316; Sept. 3, 1982, Pub. L. 97-248, title II, 286(b)(2), 96 Stat. 570; Sept. 13, 1982, Pub. L. 97-258, 3(f)(1), (2), 96 Stat. 1064; Jan. 14, 1983, Pub. L. 97-473, title II, 202(b)(5), 96 Stat. 2610; July 18, 1984, Pub. L. 98-369, div. A, title X,
1022(a), 1032(b)(2), 98 Stat. 1026,
1033; Oct. 22, 1986, Pub. L. 99-514,
title XIV, 1422(a), 100 Stat. 2716;
Dec. 22, 1987, Pub. L. 100-203,
title X, 10711(a)(3), 101 Stat. 1330-464;
Sept. 23, 1996, Pub. L. 104-201,
title X, Sec. 1073(b)(3), 110 Stat. 2657; Pub. L. 105-34, title X, XV, Sec.
1530(c), 1089(b)(3), 1089(b)(5), Aug. 5, 1997, 111 Stat 788; Pub. L. 109-280, title XII, Sec.
1218(b), 1234(b), Aug. 17, 2006, 120
Stat. 780; Pub.
L. 110-172, Sec. 3(d)(1), Dec. 29, 2007, 121 Stat. 2473; Pub.
L. 115-141, Div. U, title IV, Sec. 401(a)(202), Mar. 23,
2018, 132 Stat. 348; Pub. L. 115-232, Div. A, title VIII, Sec.
809(h)(2)(A)-(C), Aug. 13, 2018.)
BACKGROUND NOTES
AMENDMENTS
2018 - Subsec. (g)(4). Pub. L. 115-232, Sec. 809(h)(2)(A), amended
par. (4) by substituting ‘‘section 8622 of title 10, United
States Code’’ for ‘‘section 7222 of title
10, United States Code’’.
Subsec. (g)(9). Pub.
L. 115-232, Sec. 809(h)(2)(B), amended par. (9) by substituting ‘‘section
8473 of title 10, United States Code’’ for ‘‘section
6973 of title 10, United States Code’’.
Subsec. (g)(10). Pub.
L. 115-232, Sec. 809(h)(2)(C), amended par. (10) by substituting ‘‘section
8474 of title 10, United States Code’’ for ‘‘section
6974 of title 10, United States Code’’.
Subsec. (e)(3)(G). Pub.
L. 115-141, Div. U, Sec. 401(a)(202), amended subpar. (G)
by substituting “subparagraph (J))” for “subparagraph
(J)”.
2007 - Subsec. (g)-(h). Pub. L. 110-172, Sec. 3(d)(1),
struck subsec. (g) and redesignated subsec. (h) as subsec. (g). Before
being struck, subsec. (g) read as follows:
“(g) Valuation Of Subsequent Gifts—
“(1) In General— In the case of any
additional contribution, the fair market value of such contribution
shall be determined by using the lesser of--
“(A) the fair market value of the property
at the time of the initial fractional contribution, or
“(B) the fair market value of the property
at the time of the additional contribution.
“(2) Definitions— For purposes of
this paragraph--
”(A) Additional Contribution— The
term “additional contribution” means a bequest, legacy, devise,
or transfer described in subsection (a) of any interest in a property
with respect to which the decedent had previously made an initial
fractional contribution.
“ (B) Initial Fractional Contribution—The
term “initial fractional contribution” means, with respect to any
decedent, any charitable contribution of an undivided portion
of the decedent's entire interest in any tangible personal property
for which a deduction was allowed under section 170.”
2006 - Subsec. (e)(5). Pub. L. 109-280, Sec. 1234(b),
added par. (5).
Subsec. (g)-(h). Pub. L. 109-280, Sec. 1218(b),
redesignated subsec. (g) as subsec. (h) and added a new subsec. (g).
1997--Subsec. (a)(3). Pub. L. 105-34, Sec. 1530(c)(7),
struck “or” at the end of par. (3).
Subsec. (a)(4). Pub. L. 105-34, Sec. 1530(c)(7),
substituted “; or” for “.” at the end of par. (4).
Subsec. (a)(5). Pub. L. 105-34, Sec. 1530(c)(7),
added par. (5).
Subsec. (e)(3)(G). Pub. L. 105-34, Sec. 1089(b)(5),
inserted “(or other proceeding pursuant to subparagraph (J))” after
“reformation”.
Subsec. (e)(3)(J). Pub. L. 105-34, Sec. 1089(b)(3),
added subpar. (J).
1996--Subsec. (g)(4). Pub. L. 104-201, Sec. 1073(b)(3),
revised paragraph (4), which prior to revision read as follows:
“(4) For treatment of gifts
and bequests for the benefit of the Office of Naval Records and History
as gifts or bequests to or for the use of the United States, see section
7222 of title 10, United States Code.”
1987--Subsec. (a)(2), (3). Pub. L. 100-203 inserted “(or in
opposition to)” after “on behalf of”.
1986--Subsecs. (f), (g). Pub. L. 99-514 added subsec. (f)
and redesignated former subsec. (f) as (g).
1984--Subsec. (e)(3). Pub. L. 98-369, 1022(a), amended
par. (3) generally, substituting provisions relating to reformations
to comply with par. (2), defining “qualified reformation”, “reformable
interest”, and “qualified interest”, and setting forth limitations
on the deduction, a special rule where the income beneficiary dies,
statute of limitations, regulations prescribed by the Secretary, and
reformations permitted in the case of remainder interests in a residence
or farm, pooled income funds, etc., for former par. (3), which provided:
“In the case of a will executed before December 31, 1978, or a trust
created before such date, if a deduction is not allowable at the time
of the decedent's death because of the failure of an interest in property
which passes from the decedent to a person, or for a use, described
in subsection (a) to meet the requirements of subparagraph (A) or
(B) of paragraph (2) of this subsection, and if the governing instrument
is amended or conformed on or before December 31, 1981, or, if later,
on or before the 30th day after the date on which judicial proceedings
begun on or before December 31, 1981, (which are required to amend
or conform the governing instrument), become final, so that the interest
is in a trust which meets the requirements of such subparagraph (A)
or (B) (as the case may be), a deduction shall nevertheless be allowed.
The Secretary may, by regulation, provide for the application of the
provisions of this paragraph to trusts whose governing instruments
are amended or conformed in accordance with this paragraph, and such
regulations may provide for any adjustments in the application of
the provisions of section 508 (relating to special rules with respect
to section 501(c)(3) organizations), subchapter J (relating to estates,
trusts, beneficiaries, and decedents), and chapter 42 (relating to
private foundations), to such trusts made necessary by the application
of this paragraph. If, by the due date for the filing of an estate
tax return (including any extension thereof), the interest is in a
charitable trust which, upon allowance of a deduction, would be described
in section 4947(a)(1), or the interest passes directly to a person
or for a use described in subsection (a), a deduction shall be allowed
as if the governing instrument was amended or conformed under this
paragraph. If the amendment or conformation of the governing instrument
is made after the due date for the filing of the estate tax return
(including any extension thereof), the deduction shall be allowed
upon the filing of a timely claim for credit or refund (as provided
for in section 6511) of an overpayment resulting from the application
of this paragraph. In the case of a credit or refund as a result of
an amendment or conformation made pursuant to this paragraph, no interest
shall be allowed for the period prior to the expiration of the 180th
day after the date on which the claim for credit or refund is filed.”
Subsec. (f)(2). Pub.
L. 98-369, 1032(b)(2), added par. (2), and redesignated
former pars. (2) to (11) as pars. (3) to (12), respectively.
1983--Subsec. (f)(11). Pub. L. 97-473 added par. (11).
1982--Subsec. (a). Pub. L. 97-248 inserted provision
that rules similar to the rules of section 501(j) of this title shall
apply for purposes of par. (2).
Subsec. (f)(6). Pub.
L. 97-258, 3(f)(1), substituted “section 4043 of
title 18, United States Code” for “section 2 of the Act of May 15,
1952, as amended by the Act of July 9, 1952 (31 U.S.C. 725s-4)”.
Subsec. (f)(7). Pub.
L. 97-258, 3(f)(2), substituted “section 3113(e)
of title 31, United States Code” for “section 24 of the Second Liberty
Bond Act (31 U.S.C. 757e)”.
1981--Subsec. (e)(4). Pub. L. 97-34 added par. (4).
1980--Subsec. (e)(3). Pub. L. 96-605 substituted “December
31, 1978” for “December 31, 1977” and “December 31, 1981” for “December
31, 1978” in two places.
Pub. L. 96-222 substituted
“such subparagraph (A) or (B)” for “such subparagraph (a) or (B)"
and “so that the interest” for “so that interest”.
Subsec. (f)(5). Pub.
L. 96-465, among other changes, inserted references
to the Director of the International Communication Agency and the
Director of the United States International Development Cooperation
Agency and substituted reference to section 25 of the State Department
Basic Authorities Act of 1956 for reference to section 1021(e) of
the Foreign Service Act of 1946.
1978--Subsec. (e)(3). Pub. L. 95-600 inserted “or (B)"
before “of paragraph (2)”, substituted “on or before December 31,
1978” for “on or before December 31, 1977” wherever appearing and
“which meets the requirements of such subparagraph (a) or (B) (as
the case may be),” for “which is a charitable remainder annuity trust,
a charitable remainder unitrust (described in section 664), or a pooled
income fund (described in section 642(c)(5)),”.
1976--Subsec. (a). Pub. L. 94-455, 1307(d)(1)(B)(ii),
(C), 1313(b)(2), 1902(a)(12)(A), 2009(b)(4)(B), (C), struck out “(including
the interest which falls into any such bequest, legacy, devise, or
transfer as a result of an irrevocable disclaimer of a bequest, legacy,
devise, transfer, or power, if the disclaimer is made before the date
prescribed for the filing of the estate tax return)” after “or transfers"
in provisions preceding par. (1), struck out “Territory,” after “State,"
in par. (1), inserted “,or to foster national or international amateur
sports competition (but only if no part of its activities involve
the provision of athletic facilities or equipment),” after “encouragement
of art” and substituted “which is not disqualified for tax exemption
under section 501(c)(3) by reason of attempting to influence legislation,"
for “no substantial part of the activities of which is carrying on
propaganda, or otherwise attempting to influence legislation,” in
par. (2), substituted “such trust, fraternal society, order, or association
would not be disqualified for tax exemption under section 501(c)(3)
by reason of attempting to influence legislation,” for “no substantial
part of the activities of such trustee or trustees, or of such fraternal
society, order, or association, is carrying on propaganda, or otherwise
attempting, to influence legislation,” in par. (3), and, in provisions
following par. (4), substituted “a qualified disclaimer” for “an irrevocable
disclaimer” and “such qualified disclaimer” for “such irrevocable
disclaimer”.
Subsec. (b). Pub.
L. 94-455, 1902(a)(4)(A), struck out provisions under
which a bequest in trust, if the surviving spouse of the decedent
was entitled for life to all of the net income from the trust and
the surviving spouse had a power of appointment over the corpus of
that trust exercisable by will in favor of, among others, organizations
described in subsec. (a)(2), could be deemed a transfer to the organization
by the decedent under certain conditions.
Subsec. (e)(2). Pub.
L. 94-455, 2124(e)(2), substituted “(other than an
interest described in section 170(f)(3)(B))” for “(other than a remainder
interest in a personal residence or farm or an undivided portion of
the decedent's entire interest in property)” in provisions preceding
subpar. (A).
Subsec. (e)(3). Pub.
L. 94-455, 1304(a), 1906(b)(13)(A), substituted “will
executed before December 31, 1977,” for “will executed before September
21, 1974,” and “amended or conformed on or before December 31, 1977,
or, if later, on or before the 30th day after the date on which judicial
proceedings begun on or before December 31, 1977” for “amended or
conformed on or before December 31, 1975, or, if later, on or before
the 30th day after the date on which judicial proceedings begun on
or before December 31, 1975” and struck out “or his delegate” after
“Secretary”.
Subsec. (f). Pub.
L. 94-455, 1902(a)(4)(B), extended par. (2) by inserting
reference to gifts, struck out par. (3) which made a cross reference
to section 2 of the Act of Aug. 8, 1946 (60
Stat. 924; 5 U.S.C. 393)
for construction of bequests for benefit of the library of the Post
Office Department as bequests to or for the use of the United States,
redesignated pars. (4)-(11) as (3)-(10), respectively, substituted
“For treatment of gifts and bequests for the benefit of the Office
of Naval Records and History as gifts or bequests to or for the use
of the United States, see section 7222 of title 10, United States
Code” for “For exemption of bequests for benefit of Office of Naval
Records and Library, Navy Department, see section 2 of the Act of
March 4, 1937 (50 Stat. 25; 5 U.S.C. 419b)” in par. (3) as
so redesignated, substituted “For treatment of gifts and bequests
to or for the benefit of National Park Foundation as gifts or bequests
to or for the use of the United States, see section 8 of the Act of
December 18, 1967 (16 U.S.C. 191)"
for “For exemption of bequests to or for benefit of National Park
Service, see section 5 of the Act of July 10, 1935 (49 Stat. 478; 16 U.S.C. 19c)” in par. (4) as
so redesignated, and corrected obsolete and inaccurate references
in pars. (5)-(10) as so redesignated.
1974--Subsec. (e)(3). Pub. L. 93-483 added par. (3).
1970--Subsec. (b)(2)(C). Pub. L. 91-614 substituted “6 months"
for “one year”.
1969--Subsec. (a)(2). Pub. L. 91-172, 201(d)(4)(A) (i),
inserted non-participation and non-intervention in political campaigns
as an additional qualification.
Subsec. (a)(3). Pub.
L. 91-172, 201(d)(4)(A)(ii), inserted non-participation
and non-intervention in political campaigns as an additional qualification.
Subsec. (e). Pub.
L. 91-172, 201(d)(1), substituted substantive provisions
for simple reference to sections 503 and 681 of this title in which
such substantive provisions were formerly set out.
1958--Subsec. (e). Pub. L. 85-866 substituted “503"
for “504”.
1956--Subsec. (b). Act Aug.
6, 1956, designated existing provisions as par. (1) and added par.
(2).
EFFECTIVE DATE OF 2018
AMENDMENTS
Amendments by Pub. L.
115-232, Sec. 809(h)(2)(A)-(C), effective February 1, 2019.
Amendment by Pub. L.
115-141, Div. U, Sec. 401(a)(202), effective March 23, 2018.
EFFECTIVE DATE OF 2007 AMENDMENTS
Amendments by Sec. 3(d)(1) of Pub. L. 110-172 effective as if
included in the provisions of the Pension Protection Act of 2006 [Pub. L. 109-280, Sec. 1218]
to which they relate.
EFFECTIVE
DATE OF 2006 AMENDMENTS
Amendments by Sec. 1218(b) of Pub. L. 109-280 applicable to contributions,
bequests, and gifts made after the date of the enactment of this Act
[Enacted: Aug. 17, 2006].
Amendment by Sec. 1234(b) of Pub. L. 109-280 applicable to contributions
made after the date which is 180 days after the date of the enactment
of this Act [Enacted: Aug. 17, 2006].
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendments by Sec. 1530 of Pub. L. 105-34 applicable to transfers
made by trusts to, or for the use of, an employee stock ownership
plan after the date of the enactment of this Act.
Amendments by Sec. 1089(b) of Pub. L. 105-34 applicable to transfers
in trust after July 28, 1997. Sec. 1089(b)(6)(B) of Pub. L. 105-34 provided the following
special rule:
“(B) Special rule for certain decedents.--The amendments
made by this subsection shall not apply to transfers in trust under
the terms of a will (or other testamentary instrument) executed on
or before July 28, 1997, if the decedent--
(i) dies before January 1, 1999,
without having republished the will (or amended such instrument) by
codicil or otherwise, or
(ii) was on July 28, 1997, under
a mental disability to change the disposition of his property and
did not regain his competence to dispose of such property before the
date of his death.”
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub.
L. 100-203 applicable with respect to activities
after Dec. 22, 1987, see section 10711(c) of Pub. L. 100-203, set out as a note
under section 170 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Section 1422(e) of Pub.
L. 99-514 provided that: “The amendments made by
this section [amending sections 2055, 2106, and 2522 of this title]
shall apply to transfers and contributions made after December 31,
1986.”
EFFECTIVE DATE OF 1984 AMENDMENT
Section 1022(e) of Pub.
L. 98-369, as amended by Pub.
L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) Subsections (a), (b), and (c).--The amendments
made by subsections (a), (b), and (c) [amending sections 170, 2055,
and 2522 of this title] shall apply to reformations after December
31, 1978; except that such amendments shall not apply to any reformation
to which section 2055(e)(3) of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as in effect on
the day before the date of the enactment of this Act [July 18, 1984])
applies. For purposes of applying clause (iii) of section 2055(e)(3)(C)
of such Code (as amended by this section), the 90th day described
in such clause shall be treated as not occurring before the 90th day
after the date of the enactment of this Act.
“(2) Subsection (d).--The amendment made by subsection
(d) [amending section 664 of this title] shall apply to transfers
after December 31, 1978.
“(3) Statute of limitations.--
“(A) In general.--If on the
date of the enactment of this Act [July 18, 1984] (or at any time
before the date 1 year after such date of enactment), credit or refund
of any overpayment of tax attributable to the amendments made by this
section is barred by any law or rule of law, such credit or refund
of such overpayment may nevertheless be made if claim therefor is
filed before the date 1 year after the date of the enactment of this
Act.
“(B) No interest where statute
closed on date of enactment.--In any case where the making of the
credit or refund of the overpayment described in subparagraph (A)
is barred on the date of the enactment of this Act [July 18, 1984],
no interest shall be allowed with respect to such overpayment (or
any related adjustment) for the period before the date 180 days after
the date on which the Secretary of the Treasury (or his delegate)
is notified that the reformation has occurred.”
Amendment by section 1032(b)(2) of Pub. L. 98-369 applicable to taxable
years beginning after July 18, 1984, see section 1032(c) of Pub. L. 98-369, set out as a note
under section 170 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
For effective date of amendment by Pub. L. 97-473, see section 204(3)
of Pub. L. 97-473,
set out as an Effective Date note under section 7871 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub.
L. 97-248 effective Oct. 5, 1976, see section 286(c)
of Pub. L. 97-248,
set out as a note under section 501 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 423(c)(1) of Pub.
L. 97-34 provided that: “The amendment made by subsection
(a) [amending this section] shall apply to the estates of decedents
dying after December 31, 1981.”
EFFECTIVE DATE OF 1980 AMENDMENTS
Section 301(b)(1) of Pub.
L. 96-605 provided that: “The amendment made by subsection
(a) [amending this section] shall apply in the case of decedents dying
after December 31, 1969.”
Amendment by Pub.
L. 96-465 effective Feb. 15, 1981, except as otherwise
provided, see section 2403 of Pub.
L. 96-465, set out as an Effective Date note under
section 3901 of Title 22, Foreign Relations and Intercourse.
Amendment by Pub.
L. 96-222 effective, except as otherwise provided,
as if it had been included in the provisions of the Revenue Act of
1978, Pub. L. 95-600,
to which such amendment relates, see section 201 of Pub. L. 96-222, set out as a note
under section 32 of this title.
CHANGE
OF NAME
The
International Communication Agency, and the Director thereof, were
redesignated the United States Information Agency, and the Director
thereof, by section 303 of Pub. L.
97-241, title III, Aug. 24, 1982, 96 Stat. 291, set out as a note under
section 1461 of Title 22, Foreign Relations and Intercourse.
EXTENSION OF 1978 AMENDMENT; CHARITABLE LEAD
TRUSTS AND CHARITABLE REMAINDER TRUSTS IN CASE OF INCOME AND GIFT
TAXES
Section 301(b)(2) of Pub.
L. 96-605 provided that: “Section 514(b) [section
514(b) of Pub. L. 95-600,
set out as a note below] (and section 514(c) [section 514(c) of Pub. L. 95-600, set out as a note
below] insofar as it relates to section 514(b)) of the Revenue Act
of 1978 shall be applied as if the amendment made by subsection (a)
[amending this section] had been included in the amendment made by
section 514(a) of such Act [section 514(a) of Pub. L. 95-600, amending this section].”
EFFECTIVE DATE OF 1978 AMENDMENT; CHARITABLE
LEAD TRUSTS AND CHARITABLE REMAINDER TRUSTS IN CASE OF INCOME AND
GIFT TAXES
Section 514(c) of Pub.
L. 95-600, as added by Pub.
L. 96-222, title I, 105(a)(4)(B), Apr. 1, 1980, 94 Stat. 219; Pub.
L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) For subsection (a).--The amendment made by
subsection (a) [amending this section] shall apply in the case of
decedents dying after December 31, 1969.
“(2) For subsection (b).--Subsection (b) [section
514(b) of Pub. L. 95-600,
set out as a note below]--
“(A) insofar as it relates to section 170 of the Internal Revenue Code of
1986 [formerly I.R.C. 1954]
shall apply to transfers in trust and contributions made after July
31, 1969, and
“(B) insofar as it relates to section 2522 of the Internal Revenue Code of
1986 shall apply to transfers made after December 31, 1969.”
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1304(c) of Pub.
L. 94-455 provided that: “The amendments made by
this section [amending this section] shall apply in the case of decedents
dying after December 31, 1969.”
Amendment by section 1307(d)(1)(B)(ii), (C) of Pub. L. 94-455, applicable to the
estates of decedents dying after Dec. 31, 1976, see section 1307(e)
of Pub. L. 94-455,
set out as a note under section 501 of this title.
Amendment by section 1313(b)(2) of Pub. L. 94-455 applicable on the
day following Oct. 4, 1976, see section 1313(d) of Pub. L. 94-455, set out as a note
under section 501 of this title.
Amendment by section 1902(a)(4) of Pub. L. 94-455 applicable in the
case of estates of decedents dying after Oct. 4, 1976, see section
1902(c)(1) of Pub. L. 94-455,
set out as a note under section 2011 of this title.
Amendment by section 1902(a)(12)(A) of Pub. L. 94-455 applicable with respect
to gifts made after Dec. 31, 1976, see section 1902(c)(2) of Pub. L. 94-455, set out as a note
under section 2501 of this title.
Amendment by section 2009(b)(4)(B), (C) of Pub. L. 94-455 applicable with respect
to transfers creating an interest in the person disclaiming made after
Dec. 31, 1976, see section 2009(e)(2) of Pub.
L. 94-455, set out as a note under section 2036 of
this title.
Amendment by section 2124(e)(2) of Pub. L. 94-455 applicable with respect
to contributions or transfers made after June 13, 1976, see section
2124(e)(4) of Pub. L. 94-455,
set out as a note under section 170 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Section 3(b) of Pub.
L. 93-483 provided that: “The amendment made by subsection
(a) [amending this section] shall apply with respect to estates of
decedents dying after December 31, 1969.”
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub.
L. 91-614 applicable with respect to decedents dying
after Dec. 31, 1970, see section 101(j) of Pub. L. 91-614, set out as an Effective
Date note under section 2032 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by section 201(d)(1) of Pub. L. 91-172 applicable in the
case of decedents dying after Dec. 31, 1969, with specified exceptions,
see section 201(g)(4) of Pub. L. 91-172,
set out as a note under section 170 of this title.
Amendment by section 201(d)(4)(A) of Pub. L. 91-172 applicable to gifts
and transfers made after Dec. 31, 1969, see section 201(g)(4)(E) of Pub. L. 91-172, set out as a note
under section 170 of this title.
EFFECTIVE DATE OF 1956 AMENDMENT
Section 3 of act Aug. 6, 1956, provided that: “The
amendments made by this Act [amending sections 2056 and 6503 of this
title] shall apply in the case of decedents dying after August 16,
1954.”
REINSTATEMENT
OF ESTATE TAX; REPEAL OF CARRYOVER BASIS
Section
301 of Pub. L. 111-312 provided:
“(a)
IN GENERAL.—Each provision of law amended by subtitle A or E
of title V of the Economic Growth and Tax Relief Reconciliation Act
of 2001 is amended to read as such provision would read if such subtitle
had never been enacted.
“(b)
CONFORMING AMENDMENT.—On and after January 1, 2011, paragraph
(1) of section 2505(a) of the Internal
Revenue Code of 1986 is amended to read as such paragraph
would read if section 521(b)(2) of the Economic Growth and Tax Relief
Reconciliation Act of 2001 had never been enacted.
“(c)
SPECIAL ELECTION WITH RESPECT TO ESTATES OF DECEDENTS DYING IN 2010.—Notwithstanding
subsection (a), in the case of an estate of a decedent dying after
December 31, 2009, and before January 1, 2011, the executor (within
the meaning of section 2203 of the Internal
Revenue Code of 1986) may elect to apply such Code as though
the amendments made by subsection (a) do not apply with respect to
chapter 11 of such Code and with respect to property acquired or passing
from such decedent (within the meaning of section 1014(b) of such
Code). Such election shall be made at such time and in such manner
as the Secretary of the Treasury or the Secretary's delegate shall
provide. Such an election once made shall be revocable only with the
consent of the Secretary of the Treasury or the Secretary's delegate.
For purposes of section 2652(a)(1) of such Code, the determination
of whether any property is subject to the tax imposed by such chapter
11 shall be made without regard to any election made under this subsection.
“(d)
EXTENSION OF TIME FOR PERFORMING CERTAIN ACTS.—
“
(1) ESTATE TAX.—In the case of the estate of a decedent dying
after December 31, 2009, and before the date of the enactment of this
Act, the due date for—
“(A)
filing any return under section 6018 of
the Internal Revenue Codeof 1986 (including any election
required to be made on such a return) as such section is in effect
after the date of the enactment of this Act without regard to any
election under subsection (c),
“(B)
making any payment of tax under chapter 11 of such Code, and
“(C)
making any disclaimer described in section 2518(b) of such Code of
an interest in property passing by reason of the death of such decedent,
shall not be earlier than the date which is 9 months after the date
of the enactment of this Act.
“(2)
GENERATION-SKIPPING TAX.—In the case of any generation-skipping
transfer made after December 31, 2009, and before the date of the
enactment of this Act, the due date for filing any return under section 2662 of the Internal Revenue Code of
1986 (including any election required to be made on such a return)
shall not be earlier than the date which is 9 months after the date
of the enactment of this Act.
“(e)
EFFECTIVE DATE.—Except as otherwise provided in this section,
the amendments made by this section shall apply to estates of decedents
dying, and transfers made, after December 31, 2009.”
TERMINATION
Section
501(a) (Estate Tax Repeal) of Pub.
L. 107-16 added Code Sec. 2210, which states that
chapter 11 of subtitle B shall not apply to the estates of decedents
dying after December 31, 2009.
Note,
however, that Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358 and Pub. L. 111-312, and struck by Pub. L. 112-240, Sec. 101(a)(1) (effective
for taxable, plan, or limitation years beginning after Dec. 31, 2012,
and estates of decedents dying, gifts made, or generation skipping
transfers after Dec. 31, 2012), provided that:
“(a)
IN GENERAL.--All provisions of, and amendments made by, this Act shall
not apply--
“(1) to taxable, plan, or limitation years beginning
after December 31, 2012, or
“(2) in the case of title V, to estates of decedents
dying, gifts made, or generation skipping transfers, after December
31, 2012.
“(b)
APPLICATION OF CERTAIN LAWS.--The Internal Revenue Code of 1986 and
the Employee Retirement Income Security Act of 1974 shall be applied
and administered to years, estates, gifts, and transfers described
in subsection (a) as if the provisions and amendments described in
subsection (a) had never been enacted.
“(c)
EXCEPTION.-Subsection (a) shall not apply to section 803 (relating
to no federal income tax on restitution received by victims of the
Nazi regime or their heirs or estates).”
SPECIAL DONATIONS
Section 1422(d) of Pub.
L. 99-514 provided that: “If the Secretary of the
Interior acquires by donation after December 31, 1986, a conservation
easement (within the meaning of section 2(h) of S. 720, 99th Congress,
1st Session, as in effect on August 16, 1986) [see Pub. L. 99-420, Sept. 25, 1986, 102(h), 99 Stat. 955, 957], such donation shall
qualify for treatment under section 2055(f) or 2522(d) of the Internal Revenue Code of
1954 [now 1986], as added by this section.”
CHARITABLE LEAD TRUSTS AND CHARITABLE REMAINDER
TRUSTS IN CASE OF INCOME AND GIFT TAXES
Section 514(b) of Pub.
L. 95-600, as amended by Pub.
L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “Under
regulations prescribed by the Secretary of the Treasury or his delegate,
in the case of trusts created before December 31, 1977, provisions
comparable to section 2055(e)(3)
of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by subsection
(a)) shall be deemed to be included in sections 170 and 2522 of the Internal Revenue Codeof
1986.”
EXTENSION OF PERIOD FOR FILING CLAIM FOR REFUND
Section 1304(b) of Pub.
L. 94-455, as amended by Pub.
L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “A claim
for refund or credit of an overpayment of the tax imposed by section 2001 of the Internal Revenue Code of
1986 [formerly I.R.C. 1954]
allowable under section 2055(e)(3) of such Code (as amended by subsection
(a)) shall not be denied because of the expiration of the time for
filing such a claim under section 6511(a) if such claim is filed not
later than June 30, 1978.”
