USC Subchapter C

USC Subchapter C
in effect

26 U.S.C. § 2201 Combat zone-related deaths of members of the Armed Forces, deaths of astronauts, and deaths of victims of certain terrorist attacks

(a) In generalUnless 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). (b) Qualified decedentFor purposes of this section, the term “qualified decedent” means—(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—(A) was killed in action while serving in a combat zone, as determined under section 112(c), or (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, (2) any specified terrorist victim (as defined in section 692(d)(4)), and (3) any astronaut whose death occurs in the line of duty. (c) Rate schedule If the amount with respect to which the tentative tax to be computed is:The tentative tax is: Not over $150,0001 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. (d) Determination of unified creditIn the case of an estate to which this section applies, subsection (a) shall not apply in determining the credit under section 2010.

26 U.S.C. § 2203 Definition of executor

The term “executor” wherever it is used in this title in connection with the estate tax imposed by this chapter means the executor or administrator of the decedent, or, if there is no executor or administrator appointed, qualified, and acting within the United States, then any person in actual or constructive possession of any property of the decedent.

26 U.S.C. § 2204 Discharge of fiduciary from personal liability

(a) General ruleIf the executor makes written application to the Secretary for determination of the amount of the tax and discharge from personal liability therefor, the Secretary (as soon as possible, and in any event within 9 months after the making of such application, or, if the application is made before the return is filed, then within 9 months after the return is filed, but not after the expiration of the period prescribed for the assessment of the tax in section 6501) shall notify the executor of the amount of the tax. The executor, on payment of the amount of which he is notified (other than any amount the time for payment of which is extended under sections 6161, 6163, or 6166), and on furnishing any bond which may be required for any amount for which the time for payment is extended, shall be discharged from personal liability for any deficiency in tax thereafter found to be due and shall be entitled to a receipt or writing showing such discharge. (b) Fiduciary other than the executorIf a fiduciary (not including a fiduciary in respect of the estate of a nonresident decedent) other than the executor makes written application to the Secretary for determination of the amount of any estate tax for which the fiduciary may be personally liable, and for discharge from personal liability therefor, the Secretary upon the discharge of the executor from personal liability under subsection (a), or upon the expiration of 6 months after the making of such application by the fiduciary, if later, shall notify the fiduciary (1) of the amount of such tax for which it has been determined the fiduciary is liable, or (2) that it has been determined that the fiduciary is not liable for any such tax. Such application shall be accompanied by a copy of the instrument, if any, under which such fiduciary is acting, a description of the property held by the fiduciary, and such other information for purposes of carrying out the provisions of this section as the Secretary may require by regulations. On payment of the amount of such tax for which it has been determined the fiduciary is liable (other than any amount the time for payment of which has been extended under section 6161, 6163, or 6166), and on furnishing any bond which may be required for any amount for which the time for payment has been extended, or on receipt by him of notification of a determination that he is not liable for any such tax, the fiduciary shall be discharged from personal liability for any deficiency in such tax thereafter found to be due and shall be entitled to a receipt or writing evidencing such discharge. (c) Special lien under section 6324AFor purposes of the second sentence of subsection (a) and the last sentence of subsection (b), an agreement which meets the requirements of section 6324A (relating to special lien for estate tax deferred under section 6166) shall be treated as the furnishing of bond with respect to the amount for which the time for payment has been extended under section 6166. (d) Good faith reliance on gift tax returnsIf the executor in good faith relies on gift tax returns furnished under section 6103(e)(3) for determining the decedent’s adjusted taxable gifts, the executor shall be discharged from personal liability with respect to any deficiency of the tax imposed by this chapter which is attributable to adjusted taxable gifts which—(1) are made more than 3 years before the date of the decedent’s death, and (2) are not shown on such returns.

26 U.S.C. § 2205 Reimbursement out of estate

If the tax or any part thereof is paid by, or collected out of, that part of the estate passing to or in the possession of any person other than the executor in his capacity as such, such person shall be entitled to reimbursement out of any part of the estate still undistributed or by a just and equitable contribution by the persons whose interest in the estate of the decedent would have been reduced if the tax had been paid before the distribution of the estate or whose interest is subject to equal or prior liability for the payment of taxes, debts, or other charges against the estate, it being the purpose and intent of this chapter that so far as is practicable and unless otherwise directed by the will of the decedent the tax shall be paid out of the estate before its distribution.

26 U.S.C. § 2206 Liability of life insurance beneficiaries

Unless the decedent directs otherwise in his will, if any part of the gross estate on which tax has been paid consists of proceeds of policies of insurance on the life of the decedent receivable by a beneficiary other than the executor, the executor shall be entitled to recover from such beneficiary such portion of the total tax paid as the proceeds of such policies bear to the taxable estate. If there is more than one such beneficiary, the executor shall be entitled to recover from such beneficiaries in the same ratio. In the case of such proceeds receivable by the surviving spouse of the decedent for which a deduction is allowed under section 2056 (relating to marital deduction), this section shall not apply to such proceeds except as to the amount thereof in excess of the aggregate amount of the marital deductions allowed under such section.

26 U.S.C. § 2207 Liability of recipient of property over which decedent had power of appointment

Unless the decedent directs otherwise in his will, if any part of the gross estate on which the tax has been paid consists of the value of property included in the gross estate under section 2041, the executor shall be entitled to recover from the person receiving such property by reason of the exercise, nonexercise, or release of a power of appointment such portion of the total tax paid as the value of such property bears to the taxable estate. If there is more than one such person, the executor shall be entitled to recover from such persons in the same ratio. In the case of such property received by the surviving spouse of the decedent for which a deduction is allowed under section 2056 (relating to marital deduction), this section shall not apply to such property except as to the value thereof reduced by an amount equal to the excess of the aggregate amount of the marital deductions allowed under section 2056 over the amount of proceeds of insurance upon the life of the decedent receivable by the surviving spouse for which proceeds a marital deduction is allowed under such section.

26 U.S.C. § 2207A Right of recovery in the case of certain marital deduction property

(a) Recovery with respect to estate tax(1) In generalIf any part of the gross estate consists of property the value of which is includible in the gross estate by reason of section 2044 (relating to certain property for which marital deduction was previously allowed), the decedent’s estate shall be entitled to recover from the person receiving the property the amount by which—(A) the total tax under this chapter which has been paid, exceeds (B) the total tax under this chapter which would have been payable if the value of such property had not been included in the gross estate. (2) Decedent may otherwise directParagraph (1) shall not apply with respect to any property to the extent that the decedent in his will (or a revocable trust) specifically indicates an intent to waive any right of recovery under this subchapter with respect to such property. (b) Recovery with respect to gift taxIf for any calendar year tax is paid under chapter 12 with respect to any person by reason of property treated as transferred by such person under section 2519, such person shall be entitled to recover from the person receiving the property the amount by which—(1) the total tax for such year under chapter 12, exceeds (2) the total tax which would have been payable under such chapter for such year if the value of such property had not been taken into account for purposes of chapter 12. (c) More than one recipient of propertyFor purposes of this section, if there is more than one person receiving the property, the right of recovery shall be against each such person. (d) Taxes and interestIn the case of penalties and interest attributable to additional taxes described in subsections (a) and (b), rules similar to subsections (a), (b), and (c) shall apply.

26 U.S.C. § 2207B Right of recovery where decedent retained interest

(a) Estate tax(1) In generalIf any part of the gross estate on which tax has been paid consists of the value of property included in the gross estate by reason of section 2036 (relating to transfers with retained life estate), the decedent’s estate shall be entitled to recover from the person receiving the property the amount which bears the same ratio to the total tax under this chapter which has been paid as—(A) the value of such property, bears to (B) the taxable estate. (2) Decedent may otherwise directParagraph (1) shall not apply with respect to any property to the extent that the decedent in his will (or a revocable trust) specifically indicates an intent to waive any right of recovery under this subchapter with respect to such property. (b) More than one recipientFor purposes of this section, if there is more than 1 person receiving the property, the right of recovery shall be against each such person. (c) Penalties and interestIn the case of penalties and interest attributable to the additional taxes described in subsection (a), rules similar to the rules of subsections (a) and (b) shall apply. (d) No right of recovery against charitable remainder trustsNo person shall be entitled to recover any amount by reason of this section from a trust to which section 664 applies (determined without regard to this section).

26 U.S.C. § 2208 Certain residents of possessions considered citizens of the United States

A decedent who was a citizen of the United States and a resident of a possession thereof at the time of his death shall, for purposes of the tax imposed by this chapter, be considered a “citizen” of the United States within the meaning of that term wherever used in this title unless he acquired his United States citizenship solely by reason of (1) his being a citizen of such possession of the United States, or (2) his birth or residence within such possession of the United States.

26 U.S.C. § 2209 Certain residents of possessions considered nonresidents not citizens of the United States

A decedent who was a citizen of the United States and a resident of a possession thereof at the time of his death shall, for purposes of the tax imposed by this chapter, be considered a “nonresident not a citizen of the United States” within the meaning of that term wherever used in this title, but only if such person acquired his United States citizenship solely by reason of (1) his being a citizen of such possession of the United States, or (2) his birth or residence within such possession of the United States.