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

Summary

The President may use older (pre-1967) estate tax rules for people who died while living in a foreign country if three things are true: the foreign country’s tax system charges a heavier estate tax on transfers from U.S. citizens who did not live there than U.S. law charges for people who did live there; the foreign country did not fix the tax after the United States asked it to do so; and the President decides it is in the public interest to apply the older rules. If the foreign country later changes its laws so the tax is no longer more burdensome, the President must proclaim that, for deaths after that proclamation, estate taxes for residents of that country will be figured under the usual U.S. estate tax rules. The President must notify the House and Senate at least 30 days before any proclamation, and the Treasury Secretary must write rules to carry out this process.

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