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Title 26 — Internal Revenue CodeRelease 119-73

§7477 Declaratory judgments relating to value of certain gifts

Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 76— - JUDICIAL PROCEEDINGS › Subchapter Subchapter C— - The Tax Court › Part PART IV— - DECLARATORY JUDGMENTS › § 7477

Last updated Apr 6, 2026|Official source

Summary

When there is a real dispute about how the IRS values a gift reported on a tax return or in a statement attached to the return, the Tax Court can officially decide the gift’s value if the donor files a proper legal filing. That decision counts as a Tax Court ruling and can be reviewed like any other. Only the donor may file. The donor must first use all IRS administrative remedies. If the IRS mailed its valuation notice by certified or registered mail, the filing must be made before the 91st day after that mailing.

Full Legal Text

Title 26, §7477

Internal Revenue Code — Source: USLM XML via OLRC

(a)In a case of an actual controversy involving a determination by the Secretary of the value of any gift shown on the return of tax imposed by chapter 12 or disclosed on such return or in any statement attached to such return, upon the filing of an appropriate pleading, the Tax Court may make a declaration of the value of such gift. Any such declaration shall have the force and effect of a decision of the Tax Court and shall be reviewable as such.
(b)(1)A pleading may be filed under this section only by the donor.
(2)The court shall not issue a declaratory judgment or decree under this section in any proceeding unless it determines that the petitioner has exhausted all available administrative remedies within the Internal Revenue Service.
(3)If the Secretary sends by certified or registered mail notice of his determination as described in subsection (a) to the petitioner, no proceeding may be initiated under this section unless the pleading is filed before the 91st day after the date of such mailing.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 7477, added Pub. L. 94–455, title X, § 1042(d)(1), Oct. 4, 1976, 90 Stat. 1637; amended Pub. L. 95–600, title III, § 336(b)(2)(B), Nov. 6, 1978, 92 Stat. 2842, provided for declaratory judgments relating to transfers of property from the United States, prior to repeal by Pub. L. 98–369, div. A, title I, § 131(e)(1), (g), July 18, 1984, 98 Stat. 664, 665, applicable to transfers or exchanges after Dec. 31, 1984, in taxable years ending after such date, with special rules for certain transfers and ruling requests before Mar. 1, 1984.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to gifts made after Aug. 5, 1997, see section 506(e)(1) of Pub. L. 105–34, set out as an

Effective Date

of 1997 Amendment note under section 2001 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 7477

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73