§2108 — Title 26 Internal Revenue Code | U.S. Code

Summary

The President can make older (pre-1967) U.S. estate tax rules apply to the estates of people who lived in a foreign country if three things are true: that foreign country taxes U.S. citizens who did not live there more heavily than the U.S. taxes residents of that country; the foreign country was asked to fix that rule and did not; and it is in the public interest to use the older rules. If the foreign country later changes its laws so the U.S. citizens are no longer taxed more heavily, the President must announce that, for people who die after that announcement, estates of residents of that country will be taxed under the current U.S. rules. The President must tell the Senate and House at least 30 days before such an announcement. The Treasury Secretary must issue rules to carry this out.

Title 26, §2108

Internal Revenue Code — Source: USLM XML via OLRC

(a)Whenever the President finds that—

(1)under the laws of any foreign country, considering the tax system of such foreign country, a more burdensome tax is imposed by such foreign country on the transfer of estates of decedents who were citizens of the United States and not residents of such foreign country than the tax imposed by this subchapter on the transfer of estates of decedents who were residents of such foreign country,

(2)such foreign country, when requested by the United States to do so, has not acted to revise or reduce such tax so that it is no more burdensome than the tax imposed by this subchapter on the transfer of estates of decedents who were residents of such foreign country, and

(3)it is in the public interest to apply pre-1967 tax provisions in accordance with this section to the transfer of estates of decedents who were residents of such foreign country,

(b)Whenever the President finds that the laws of any foreign country with respect to which the President has made a proclamation under subsection (a) have been modified so that the tax on the transfer of estates of decedents who were citizens of the United States and not residents of such foreign country is no longer more burdensome than the tax imposed by this subchapter on the transfer of estates of decedents who were residents of such foreign country, he shall proclaim that the tax on the transfer of the estate of every decedent who was a resident of such foreign country at the time of his death shall, in the case of decedents dying after the date of such proclamation, be determined under this subchapter without regard to subsection (a).

(c)No proclamation shall be issued by the President pursuant to this section unless, at least 30 days prior to such proclamation, he has notified the Senate and the House of Representatives of his intention to issue such proclamation.

(d)The Secretary shall prescribe such regulations as may be necessary or appropriate to implement this section.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1976—Subsec. (a). Pub. L. 94–455, § 1902(a)(6), substituted “November 13, 1976” for “the date of enactment of this section” after “on or after”. Subsec. (d). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1976 AmendmentAmendment by section 1902(a)(6) 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 2012 of this title.

Effective Date

Section applicable with respect to estates of decedents dying after Nov. 13, 1966, see section 108(i) of Pub. L. 89–809, set out as an

Effective Date

of 1966 Amendment note under section 2101 of this title.

§2108 Application of pre-1967 estate tax provisions

Summary

Title 26, §2108

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata