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Title 26, Internal Revenue CodeRelease 119-110

§2108 Application of Pre-1967 Estate Tax Provisions

Title 26 › Subtitle B — Estate and Gift Taxes › CHAPTER 11 — ESTATE TAX › Subchapter B — Estates of Nonresidents Not Citizens › § 2108

Last updated Sep 22, 2026|Official source

Summary

The President must announce that older estate-tax rules will apply to people who lived in a foreign country when three things happen: that country charges higher estate tax on estates of U.S. citizens who were not residents there than the U.S. charges on estates of that country’s residents; the U.S. asked the country to fix the tax and it did not; and using the pre-1967 rules is in the public interest. After the announcement, estates of residents of that foreign country who die afterward are taxed under this part of the tax code but ignoring changes to sections 2101, 2102, 2106, and 6018 made on or after November 13, 1966. If the foreign country later removes the extra burden, the President must announce that the special pre-1967 treatment ends for deaths after that announcement. The President must notify the House and Senate at least 30 days before any announcement. The Secretary must issue rules needed to carry out these steps.

Full Legal Text

Title 26, §2108

Internal Revenue Code, Source: USLM XML via OLRC

(a)Imposition of more burdensome tax by foreign country
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,
the President 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 amendments made to section 2101 (relating to tax imposed), 2102 (relating to credits against tax), 2106 (relating to taxable estate), and 6018 (relating to estate tax returns) on or after November 13, 1966.
(b)Alleviation of more burdensome tax
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)Notification of Congress required
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)Implementation by regulations
The Secretary shall prescribe such regulations as may be necessary or appropriate to implement this section.

Legislative History

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.

Reference

Citations & Metadata

Citation

26 U.S.C. § 2108

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110