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Internal Revenue Code, § 2201. Combat Zone-Related Deaths Of Members Of The Armed Forces, Deaths Of Astronauts, And Deaths Of Victims Of Certain Terrorist Attacks

I.R.C. § 2201(a) In General
Unless the executor elects not to have this section apply, in applying sections 2001 and 2101 to the estate of a qualified decedent, the rate schedule set forth in subsection (c) shall be deemed to be the rate schedule set forth in section 2001(c).
I.R.C. § 2201(b) Qualified Decedent
For purposes of this section, the term “qualified decedent” means—
I.R.C. § 2201(b)(1)
any citizen or resident of the United States dying while in active service of the Armed Forces of the United States, if such decedent--
I.R.C. § 2201(b)(1)(A)
was killed in action while serving in a combat zone, as determined under section 112(c), or
I.R.C. § 2201(b)(1)(B)
died as a result of wounds, disease, or injury suffered while serving in a combat zone (as determined under section 112(c)), and while in the line of duty, by reason of a hazard to which such decedent was subjected as an incident of such service,
I.R.C. § 2201(b)(2)
any specified terrorist victim (as defined in section 692(d)(4)), and
I.R.C. § 2201(b)(3)
any astronaut whose death occurs in the line of duty.
I.R.C. § 2201(c) Rate Schedule
 

If the amount with respect to which        The tentative tax is:
the tentative tax to be computed is:

Not over $150,000                          1 percent of the amount by which
                                           such amount exceeds $100,000. 

Over $150,000 but not over $200,000        $500 plus 2 percent of the 
                                           excess over $150,000. 

Over $200,000 but not over $300,000        $1,500 plus 3 percent of the 
                                           excess over $200,000. 

Over $300,000 but not over $500,000        $4,500 plus 4 percent of the 
                                           excess over $300,000. 
 
Over $500,000 but not over $700,000        $12,500 plus 5 percent of the 
                                           excess over $500,000. 

Over $700,000 but not over $900,000        $22,500 plus 6 percent of the 
                                           excess over $700,000. 

Over $900,000 but not over $1,100,000      $34,500 plus 7 percent of the 
                                           excess over $900,000. 

Over $1,100,000 but not over $1,600,000    $48,500 plus 8 percent of the 
                                           excess over $1,100,000. 

Over $1,600,000 but not over $2,100,000    $88,500 plus 9 percent of the 
                                           excess over $1,600,000.
 
Over $2,100,000 but not over $2,600,000    $133,500 plus 10 percent of the 
                                           excess over $2,100,000. 

Over $2,600,000 but not over $3,100,000    $183,500 plus 11 percent of the 
                                           excess over $2,600,000. 

Over $3,100,000 but not over $3,600,000    $238,500 plus 12 percent of the 
                                           excess over $3,100,000. 

Over $3,600,000 but not over $4,100,000    $298,500 plus 13 percent of the 
                                           excess over $3,600,000. 

Over $4,100,000 but not over $5,100,000    $363,500 plus 14 percent of the 
                                           excess over $4,100,000. 

Over $5,100,000 but not over $6,100,000    $503,500 plus 15 percent of the 
                                           excess over $5,100,000. 

Over $6,100,000 but not over $7,100,000    $653,500 plus 16 percent of the 
                                           excess over $6,100,000. 

Over $7,100,000 but not over $8,100,000    $813,500 plus 17 percent of the 
                                           excess over $7,100,000. 

Over $8,100,000 but not over $9,100,000    $983,500 plus 18 percent of the 
                                           excess over $8,100,000. 

Over $9,100,000 but not over $10,100,000   $1,163,500 plus 19 percent of the 
                                           excess over $9,100,000. 

Over $10,100,000                           $1,353,500 plus 20 percent of the 
                                           excess over $10,100,000. 
I.R.C. § 2201(d) Determination Of Unified Credit
In the case of an estate to which this section applies, subsection (a) shall not apply in determining the credit under section 2010.
(Aug. 16, 1954, ch. 736, 68A Stat. 401; Jan. 2, 1975, Pub. L. 93-597, 6(b)(1), (2), 88 Stat. 1953; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1902(a)(7)(A), 90 Stat. 1805; June 7, 2001, Pub. L. 107-16, title V, 532(c)(9), 115 Stat. 38; Jan. 23, 2002, Pub. L. 107-134, title I, 103, 115 Stat. 2427; Nov. 11, 2003, Pub. L. 108-121, title I, 110(c), 117 Stat. 1335.)
BACKGROUND NOTES
Amendments to Subchapter
1988--Pub. L. 100-647, title III, 3031(f)(2), Nov. 10, 1988, 102 Stat. 3638, added item 2207B.
1984--Pub. L. 98-369, div. A, title V, 544(b)(2), July 18, 1984, 98 Stat. 894, added item 2210.
1981--Pub. L. 97-34, title IV, 403(d)(4)(B), Aug. 13, 1981, 95 Stat. 305, added item 2207A.
1976--Pub. L. 94-455, title XIX, 1902(b)(1), Oct. 4, 1976, 90 Stat. 1806, struck out item 2202 “Missionaries in foreign service”.
1975--Pub. L. 93-597, 6(b)(3), Jan. 2, 1975, 88 Stat. 1953, substituted “Members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.” for “Members of the Armed Forces dying during an induction period.” in item 2201.
1970--Pub. L. 91-614, title I, 101(d)(3), Dec. 31, 1970, 84 Stat. 1837, substituted “Discharge of fiduciary from personal liability” for “Discharge of executor from personal liability" in item 2204.
1960--Pub. L. 86-779, 4(b)(2), Sept. 14, 1960, 74 Stat. 1000, added item 2209.
1958--Pub. L. 85-866, title I, 102(c)(4), Sept. 2, 1958, 72 Stat. 1675, added item 2208.
AMENDMENTS
2003--Pub. L. 108-121, Sec. 110(c), amended subsec. (b) by striking “and” at the end of par. (1)(B), by substituting “, and” for the period at the end of par. (2); and by adding a new par. (3).
2002--Pub. L. 107-134, Sec. 103(c), amended the heading of Sec. 2201. Prior to amendment it read as follows: “Members of the Armed Forces Dying in Combat Zone or by Reason of Combat-Zone-Incurred Wounds, Etc.”.
2002--Pub. L. 107-134, Sec. 103(a), amended Sec. 2201. Prior to being amended it read as follows:
“The additional estate tax as defined in section 2011(d) shall not apply to the transfer of the taxable estate of a citizen or resident of the United States dying while in active service as a member of the Armed Forces of the United States, if such decedent--
“(1) was killed in action while serving in a combat zone, as determined under section 112(c); or
Pub. L. 107-134, Sec. 103(b)(3), repealed section 532(c)(9) of Pub. L. 107-16. Pub. L. 107-16, Sec. 532(c)(9), had amended Sec. 2201 by striking “as defined in section 2011(d)" after “The additional estate tax” and had added a flush sentence at the end. The flush sentence would have read as follows:
“ For purposes of this section, the additional estate tax is the difference between the tax imposed by section 2001 or 2101 and the amount equal to 125 percent of the maximum credit provided by section 2011(b), as in effect before its repeal by the Economic Growth and Tax Relief Reconciliation Act of 2001.”.
2001--Pub. L. 107-16, Sec. 532(c)(9), struck out “as defined in section 2011(d)” after “The additional estate tax” and added the flush sentence at the end. [Editor's Note: Pub. L. 107-134, Sec. 103(b)(3), repealed Sec. 532(c)(9) of Pub. L. 107-16.
1975--Pub. L. 93-597, as amended by Pub. L. 94-455, 1902(a)(7)(A), struck out “during an induction period (as defined in section 112(c)(5))” after “resident of the United States dying”, and substituted “Members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.” for “Members of the Armed Forces dying during an induction period” in section catchline.
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendments by Pub. L. 108-121, Sec. 110(c), effective for estates of decedents dying after December 31, 2002.
EFFECTIVE DATE OF 2002 AMENDMENTS
Amendment by Pub. L. 107-134, Sec. 103, effective for estates of decedents--
(A) dying on or after September 11, 2001, and
(B) in the case of individuals dying as a result of the April 19, 1995, terrorist attack, dying on or after April 19, 1995.
Section 103(d)(2) of Pub. L. 107-134 provided that:
“(2) WAIVER OF LIMITATIONS- If refund or credit of any overpayment of tax resulting from the amendments made by this section is prevented at any time before the close of the 1-year period beginning on the date of the enactment of this Act [enacted: Jan. 23, 2002] by the operation of any law or rule of law (including res judicata), such refund or credit may nevertheless be made or allowed if claim therefor is filed before the close of such period.”
EFFECTIVE DATE OF 2001 AMENDMENT
Amendment by Pub. L. 107-16, Sec. 532(c)(9), effective for estates of decedents dying, and generation-skipping transfers, after December 31, 2004. [Editor's Note: Pub. L. 107-134, Sec. 103(b)(3), repealed Sec. 532(c)(9), generally effective for estates of decedents dying on or after September 11, 2001, and in the case of individuals dying as a result of the April 19, 1995, terrorist attack, dying on or after April 19, 1995. Thus, Sec. 532(c)(9) of Pub. L. 107-16 never took effect.]
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, 2010, or
“(2) in the case of title V, to estates of decedents dying, gifts made, or generation skipping transfers, after December 31, 2010.
“(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).”
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1902(a)(7)(B) of Pub. L. 94-455 provided that: “The amendment made by subsection (A) [amending section 6(b)(1) of Pub. L. 93-597] is effective July 1, 1973.”
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 93-597 effective July 1, 1973, see section 6(c) of Pub. L. 93-597, set out as a note under section 1034 of this title.
TREATMENT OF CERTAIN INDIVIDUALS PERFORMING SERVICES IN THE SINAI PENINSULA OF EGYPT
Section 11026 of Pub. L. 115-97 provided that:
“(a) IN GENERAL.—For purposes of the following provisions of the Internal Revenue Code of 1986, with respect to the applicable period, a qualified hazardous duty area shall be treated in the same manner as if it were a combat zone (as determined under section 112 of such Code):
* * *
“(4) Section 2201 (relating to members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.).
* * *
“(b) QUALIFIED HAZARDOUS DUTY AREA.—For purposes of this section, the term ‘‘qualified hazardous duty area’’ means the Sinai Peninsula of Egypt, if as of the date of the enactment of this section any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger), for services performed in such location. Such term includes such location only during the period such entitlement is in effect.
“(c) APPLICABLE PERIOD.—
“(1) IN GENERAL.—Except as provided in paragraph (2), the applicable period is—
“(A) the portion of the first taxable year ending after June 9, 2015, which begins on such date, and
“(B) any subsequent taxable year beginning before January 1, 2026.
“(2) WITHHOLDING.—In the case of subsection (a)(5), the applicable period is—
“(A) the portion of the first taxable year ending after the date of the enactment of this Act [Enacted: Dec. 22, 2017] which begins on such date, and
“(B) any subsequent taxable year beginning before January 1, 2026.
“(d) EFFECTIVE DATE.—
“(1) IN GENERAL.—Except as provided in paragraph (2), the provisions of this section shall take effect on June 9, 2015.
“(2) WITHHOLDING.—Subsection (a)(5) shall apply to remuneration paid after the date of the enactment of this Act.”
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 Code of 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 Codeof 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).”
QUALIFIED HAZARDOUS DUTY AREA TREATED AS COMBAT ZONE
Section 1 of Pub. L. 106-21, provided that:
“(a) General rule--For purposes of the following provisions of the Internal Revenue Code of 1986, a qualified hazardous duty area shall be treated in the same manner as if it were a combat zone (as determined under section 112 of such Code):”
* * *
“(4) Section 2201 (relating to members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.).”
* * *
“(b) Qualified Hazardous Duty Area.--For purposes of this section, the term “qualified hazardous duty area” means any area of the Federal Republic of Yugoslavia (Serbia/Montenegro), Albania, the Adriatic Sea, and the northern Ionian Sea (above the 39th parallel) during the period (which includes the date of the enactment of this Act) that any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay: duty subject to hostile fire or imminent danger) for services performed in such area.
“(c) Special Rule for Section 7508.--Solely for purposes of applying section 7508 of the Internal Revenue Code of 1986, in the case of an individual who is performing services as part of Operation Allied Force outside the United States while deployed away from such individual's permanent duty station, the term “qualified hazardous duty area” includes, during the period for which the entitlement referred to in subsection (b) is in effect, any area in which such services are performed.
“(d) Effective Dates.--
“(1) In general.--Except as provided in paragraph (2), this section shall take effect on March 24, 1999.
“(2) Withholding.--Subsection (a)(5) shall apply to renumeration paid after the date of the enactment of this Act [Enactment Date: April 19, 1999].”
QUALIFIED HAZARDOUS DUTY AREA TREATED AS COMBAT ZONE
Section 1(a), (b) of Pub. L. 104-117 provided that:
“(a) General Rule.--For purposes of the following provisions of the Internal Revenue Code of 1986, a qualified hazardous duty area shall be treated in the same manner as if it were a combat zone (as determined under section 112 of such Code):
“(4) Section 2201 (relating to members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.).
“(b) Qualified Hazardous Duty Area.--For purposes of this section, the term “qualified hazardous duty area” means Bosnia and Herzegovina, Croatia, or Macedonia, if as of the date of the enactment of this section any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger) for services performed in such country. Such term includes any such country only during the period such entitlement is in effect. Solely for purposes of applying section 7508 of the Internal Revenue Code of 1986, in the case of an individual who is performing services as part of Operation Joint Endeavor outside the United States while deployed away from such individual's permanent duty station, the term “qualified hazardous duty area” includes, during the period for which such entitlement is in effect, any area in which such services are performed.”
[2202. Repealed. Pub. L. 94-455, title XIX, 1902(a)(8), Oct. 4, 1976, 90 Stat. 1805]
Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 401; June 25, 1959, Pub. L. 86-70, 22(a), 73 Stat. 146; July 12, 1960, Pub. L. 86-624, 18(b), 74 Stat. 416, related to the presumption that missionaries duly commissioned and serving under boards of foreign missions are residents of the State or the District of Columbia wherein they resided at the time of their commission and departure for service.
Effective Date of Repeal
Repeal applicable to estates of decedents dying after Oct. 4, 1976, see section 1902(c)(1) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2011 of this title.