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26 U.S.C. § 2801 — Imposition of tax
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** If, during any calendar year, any United States citizen or resident receives any covered gift or bequest, there is hereby imposed a tax equal to the product of—
(1) the highest rate of tax specified in the table contained in section 2001(c) as in effect on the date of such receipt, and
(2) the value of such covered gift or bequest.
**(b) Tax to be paid by recipient** The tax imposed by subsection (a) on any covered gift or bequest shall be paid by the person receiving such gift or bequest.
**(c) Exception for certain gifts** Subsection (a) shall apply only to the extent that the value of covered gifts and bequests received by any person during the calendar year exceeds the dollar amount in effect under section 2503(b) for such calendar year.
**(d) Tax reduced by foreign gift or estate tax** The tax imposed by subsection (a) on any covered gift or bequest shall be reduced by the amount of any gift or estate tax paid to a foreign country with respect to such covered gift or bequest.
**(e) Covered gift or bequest**
(1) **In general** — For purposes of this chapter, the term “covered gift or bequest” means—
(A) any property acquired by gift directly or indirectly from an individual who, at the time of such acquisition, is a covered expatriate, and
(B) any property acquired directly or indirectly by reason of the death of an individual who, immediately before such death, was a covered expatriate.
(2) **Exceptions for transfers otherwise subject to estate or gift tax** — Such term shall not include—
(A) any property shown on a timely filed return of tax imposed by chapter 12 which is a taxable gift by the covered expatriate, and
(B) any property included in the gross estate of the covered expatriate for purposes of chapter 11 and shown o
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Source file: Laws/federal/codes/united-states-code/title-26/section-2801-imposition-of-tax--80826d2706.md
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Source location: Title 26, Chapter 15, § 2801; chapter-015-gifts-and-bequests-from-expatriates.md
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**(a) In general** If, during any calendar year, any United States citizen or resident receives any covered gift or bequest, there is hereby imposed a tax equal to the product of—
(1) the highest rate of tax specified in the table contained in section 2001(c) as in effect on the date of such receipt, and
(2) the value of such covered gift or bequest.
**(b) Tax to be paid by recipient** The tax imposed by subsection (a) on any covered gift or bequest shall be paid by the person receiving such gift or bequest.
**(c) Exception for certain gifts** Subsection (a) shall apply only to the extent that the value of covered gifts and bequests received by any person during the calendar year exceeds the dollar amount in effect under section 2503(b) for such calendar year.
**(d) Tax reduced by foreign gift or estate tax** The tax imposed by subsection (a) on any covered gift or bequest shall be reduced by the amount of any gift or estate tax paid to a foreign country with respect to such covered gift or bequest.
**(e) Covered gift or bequest**
(1) **In general** — For purposes of this chapter, the term “covered gift or bequest” means—
(A) any property acquired by gift directly or indirectly from an individual who, at the time of such acquisition, is a covered expatriate, and
(B) any property acquired directly or indirectly by reason of the death of an individual who, immediately before such death, was a covered expatriate.
(2) **Exceptions for transfers otherwise subject to estate or gift tax** — Such term shall not include—
(A) any property shown on a timely filed return of tax imposed by chapter 12 which is a taxable gift by the covered expatriate, and
(B) any property included in the gross estate of the covered expatriate for purposes of chapter 11 and shown on a timely filed return of tax imposed by chapter 11 of the estate of the covered expatriate.
(3) **Exceptions for transfers to spouse or charity** — Such term shall not include any property with respect to which a deduction would be allowed under section 2055, 2056, 2522, or 2523, whichever is appropriate, if the decedent or donor were a United States person.
(4) **Transfers in trust**
(A) *Domestic trusts* — In the case of a covered gift or bequest made to a domestic trust—
(i) subsection (a) shall apply in the same manner as if such trust were a United States citizen, and
(ii) the tax imposed by subsection (a) on such gift or bequest shall be paid by such trust.
(B) *Foreign trusts*
(i) *In general* — In the case of a covered gift or bequest made to a foreign trust, subsection (a) shall apply to any distribution attributable to such gift or bequest from such trust (whether from income or corpus) to a United States citizen or resident in the same manner as if such distribution were a covered gift or bequest.
(ii) *Deduction for tax paid by recipient* — There shall be allowed as a deduction under section 164 the amount of tax imposed by this section which is paid or accrued by a United States citizen or resident by reason of a distribution from a foreign trust, but only to the extent such tax is imposed on the portion of such distribution which is included in the gross income of such citizen or resident.
(iii) *Election to be treated as domestic trust* — Solely for purposes of this section, a foreign trust may elect to be treated as a domestic trust. Such an election may be revoked with the consent of the Secretary.
**(f) Covered expatriate** For purposes of this section, the term “covered expatriate” has the meaning given to such term by section 877A(g)(1).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Allowance of credit**
(1) **In general** — In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the credit percentage of so much of the taxpayer’s earned income for the taxable year as does not exceed the earned income amount.
(2) **Limitation** — The amount of the credit allowable to a taxpayer under paragraph (1) for any taxable year shall not exceed the excess (if any) of—
(A) the credit percentage of the earned income amount, over
(B) the phaseout percentage of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds the phaseout amount.
**(b) Percentages and amounts** For purposes of subsection (a)—
(1) **Percentages** — The credit percentage and the phaseout percentage shall be determined as follows: In the case of an eligible individual with:The credit percentage is:Thephaseoutpercentageis: 1 qualifying child3415.98 2 qualifying children4021.06 3 or more qualifying children4521.06 No qualifying children7.65 7.65
(2) **Amounts**
(A) *In general* — Subject to subparagraph (B), the earned income amount and the phaseout amount shall be determined as follows: In the case of an eligible individual with:The earned income amount is:Thephaseoutamount is: 1 qualifying child$6,330$11,610 2 or more qualifying children$8,890$11,610 No qualifying children$4,220 $5,280
(B) *Joint returns* — In the case of a joint return filed by an eligible individual and such individual’s spouse, the phaseout amount determined under subparagraph (A) shall be increased by $5,000.
**(c) Definitions and special rules** For purposes of this section—
(1) **Eligible individual**
(A) *In general* — The term “e
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 32
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** Notwithstanding any other provision of law, any individual to whom section 877(b) or 877A applies for any taxable year shall provide a statement for such taxable year which includes the information described in subsection (b).
**(b) Information to be provided** Information required under subsection (a) shall include—
(1) the taxpayer’s TIN,
(2) the mailing address of such individual’s principal foreign residence,
(3) the foreign country in which such individual is residing,
(4) the foreign country of which such individual is a citizen,
(5) information detailing the income, assets, and liabilities of such individual,
(6) the number of days during any portion of which that the individual was physically present in the United States during the taxable year, and
(7) such other information as the Secretary may prescribe.
**(c) Penalty** If—
(1) an individual is required to file a statement under subsection (a) for any taxable year, and
(2) fails to file such a statement with the Secretary on or before the date such statement is required to be filed or fails to include all the information required to be shown on the statement or includes incorrect information,
such individual shall pay a penalty of $10,000 unless it is shown that such failure is due to reasonable cause and not to willful neglect.
**(d) Information to be provided to Secretary** Notwithstanding any other provision of law—
(1) any Federal agency or court which collects (or is required to collect) the statement under subsection (a) shall provide to the Secretary—
(A) a copy of any such statement, and
(B) the name (and any other identifying information) of any individual refusing to comply with the provisions of subsection (a),
(2) the Secretary of State shall provide to the S
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6039G
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** When used in this title, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof—
(1) **Person** — The term “person” shall be construed to mean an+d include an individual, a trust, estate, partnership, association, company or corporation.
(2) **Partnership and partner** — The term “partnership” includes a syndicate, group, pool, joint venture, or other unincorporated organization, through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this title, a trust or estate or a corporation; and the term “partner” includes a member in such a syndicate, group, pool, joint venture, or organization.
(3) **Corporation** — The term “corporation” includes associations, joint-stock companies, and insurance companies.
(4) **Domestic** — The term “domestic” when applied to a corporation or partnership means created or organized in the United States or under the law of the United States or of any State unless, in the case of a partnership, the Secretary provides otherwise by regulations.
(5) **Foreign** — The term “foreign” when applied to a corporation or partnership means a corporation or partnership which is not domestic.
(6) **Fiduciary** — The term “fiduciary” means a guardian, trustee, executor, administrator, receiver, conservator, or any person acting in any fiduciary capacity for any person.
(7) **Stock** — The term “stock” includes shares in an association, joint-stock company, or insurance company.
(8) **Shareholder** — The term “shareholder” includes a member in an association, joint-stock company, or insurance company.
(9) **United States** — The term “United States” when used in a geographical sense includes only the States and the District of Columb
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 7701
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Treatment of expatriates**
(1) **In general** — Every nonresident alien individual to whom this section applies and who, within the 10-year period immediately preceding the close of the taxable year, lost United States citizenship shall be taxable for such taxable year in the manner provided in subsection (b) if the tax imposed pursuant to such subsection (after any reduction in such tax under the last sentence of such subsection) exceeds the tax which, without regard to this section, is imposed pursuant to section 871.
(2) **Individuals subject to this section** — This section shall apply to any individual if—
(A) the average annual net income tax (as defined in section 38(c)(1)) of such individual for the period of 5 taxable years ending before the date of the loss of United States citizenship is greater than $124,000,
(B) the net worth of the individual as of such date is $2,000,000 or more, or
(C) such individual fails to certify under penalty of perjury that he has met the requirements of this title for the 5 preceding taxable years or fails to submit such evidence of such compliance as the Secretary may require.
In the case of the loss of United States citizenship in any calendar year after 2004, such $124,000 amount shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “2003” for “1992” in subparagraph (B) thereof. Any increase under the preceding sentence shall be rounded to the nearest multiple of $1,000.
**(b) Alternative tax** A nonresident alien individual described in subsection (a) shall be taxable for the taxable year as provided in section 1 or 55, except that—
(1) the gross income shall include only the gross inc
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 877
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rules** For purposes of this subtitle—
(1) **Mark to market** — All property of a covered expatriate shall be treated as sold on the day before the expatriation date for its fair market value.
(2) **Recognition of gain or loss** — In the case of any sale under paragraph (1)—
(A) notwithstanding any other provision of this title, any gain arising from such sale shall be taken into account for the taxable year of the sale, and
(B) any loss arising from such sale shall be taken into account for the taxable year of the sale to the extent otherwise provided by this title, except that section 1091 shall not apply to any such loss.
Proper adjustment shall be made in the amount of any gain or loss subsequently realized for gain or loss taken into account under the preceding sentence, determined without regard to paragraph (3).
(3) **Exclusion for certain gain**
(A) *In general* — The amount which would (but for this paragraph) be includible in the gross income of any individual by reason of paragraph (1) shall be reduced (but not below zero) by $600,000.
(B) *Adjustment for inflation*
(i) *In general* — In the case of any taxable year beginning in a calendar year after 2008, the dollar amount in subparagraph (A) shall be increased by an amount equal to—
(I) such dollar amount, multiplied by
(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting “calendar year 2007” for “calendar year 2016” in subparagraph (A)(ii) thereof.
(ii) *Rounding* — If any amount as adjusted under clause (i) is not a multiple of $1,000, such amount shall be rounded to the nearest multiple of $1,000.
**(b) Election to defer tax**
(1) **In general** — If the taxpayer
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 877A
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Federal law — U.S. Code and appendices · legal_authorities
Page 2675
TITLE 26—INTERNAL REVENUE CODE
§ 2801
(A) there is a transfer of an interest in a
corporation or partnership to (or for the ben-
efit of) a member of the transferor’s family,
and
(B) the transferor and members of the
transferor’s family hold, immediately before
the transfer, control of the entity,
any applicable restriction shall be disregarded
in determining the value of the transferred in-
terest.
(2) Applicable restriction
For purposes of this subsection, the term
‘‘applicable restriction’’ means any restric-
tion—
(A) which effectively limits the ability of
the corporation or partnership to liquidate,
and
(B) with respect to which either of the fol-
lowing applies:
(i) The restriction lapses, in whole or in
part, after the transfer referred to in para-
graph (1).
(ii) The transferor or any member of the
transferor’s family, either alone or collec-
tively, has the right after such transfer to
remove, in whole or in part, the restric-
tion.
(3) Exceptions
The term ‘‘applicable restriction’’ shall not
include—
(A) any commercially reasonable restric-
tion which arises as part of any financing by
the corporation or partnership with a person
who is not related to the transferor or trans-
feree, or a member of the family of either, or
(B) any restriction imposed, or required to
be imposed, by any Federal or State law.
(4) Other restrictions
The Secretary may by regulations provide
that other restrictions shall be disregarded in
determining the value of the transfer of any
interest in a corporation or partnership to a
member of the transferor’s family if such re-
striction has the effect of reducing the value
of the transferred interest for purposes of this
subtitle but does not ultimately reduce the
value of such interest to the
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 2801
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