26 U.S.C. § 2001 — Imposition and rate of tax

Page 2563 TITLE 26—INTERNAL REVENUE CODE § 2001 1 Section numbers editorially supplied. 1 Section numbers editorially supplied. Subsec. (c)(2)(A)(iv). Pub. L. 91–172, § 401(d)(1), added cl. (iv). Subsec. (c)(2)(B). Pub. L. 91–172, § 401(d)(2), substituted ‘‘5 or fewer persons who are individuals, estates, or trusts (referred to in this subparagraph as ‘common owners’) own’’ for ‘‘a person who is an individual, es- tate, or trust (referred to in this paragraph as ‘common owner’) owns’’ and in cl. (ii), substituted ‘‘any of such common owners’’, ‘‘any of the common owners’’ for ‘‘such common owner’’ and ‘‘the common owner’’, re- spectively and added cl. (iii). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108–357, title VIII, § 900(c), Oct. 22, 2004, 118 Stat. 1650, provided that: ‘‘The amendments made by this section [amending this section] shall apply to tax- able years beginning after the date of the enactment of this Act [Oct. 22, 2004].’’ EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–647, title I, § 1018(s)(3)(B), Nov. 10, 1988, 102 Stat. 3587, provided that: ‘‘The amendment made by subparagraph (A) [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Nov. 10, 1988].’’ EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 1024(e) of Pub. L. 99–514, set out as a note under section 831 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L. 98–369, set out as an Effective Date note under section 801 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91–172 applicable with respect to taxable years ending on or after Dec. 31, 1970, see section 401(h)(3) of Pub. L. 91–172, set out as a note under section 1561 of this title. EFFECTIVE DATE Section applicable with respect to taxable years end- ing after Dec. 31, 1963, see section 235(d) of Pub. L. 88–272, set out as an Effective Date of 1964 Amendment note under section 269 of this title. [§ 1564. Repealed. Pub. L. 101–508, title XI, § 11801(a)(38), Nov. 5, 1990, 104 Stat. 1388–521] Section, added Pub. L. 91–172, title IV, § 401(b)(1), Dec. 30, 1969, 83 Stat. 600; amended Pub. L. 94–455, title XIX, §§ 1901(b)(1)(J)(vi), (21)(A)(ii), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1791, 1797, 1834, related to transitional rules in the case of certain controlled corporations. Statutory Notes and Related Subsidiaries SAVINGS PROVISION For provisions that nothing in repeal by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liabil- ity for tax for periods ending after Nov. 5, 1990, see sec- tion 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title. Subtitle B—Estate and Gift Taxes Chapter Sec.1 11. Estate tax .............................................. 2001 12. Gift tax .................................................. 2501 13. Tax on generation-skipping transfers ... 2601 14. Special valuation rules .......................... 2701 15. Gifts and bequests from expatriates ...... 2801 Editorial Notes AMENDMENTS 2008—Pub. L. 110–245, title III, § 301(b)(2), June 17, 2008, 122 Stat. 1646, added item for chapter 15. 1990—Pub. L. 101–508, title XI, § 11602(c), Nov. 5, 1990, 104 Stat. 1388–500, added item for chapter 14. 1986—Pub. L. 99–514, title XIV, § 1431(b), Oct. 22, 1986, 100 Stat. 2729, struck out ‘‘certain’’ after ‘‘Tax on’’ in item for chapter 13. 1976—Pub. L. 94–455, title XX, § 2006(b)(1), Oct. 4, 1976, 90 Stat. 1888, added item for chapter 13. CHAPTER 11—ESTATE TAX Subchapter Sec.1 A. Estates of citizens or residents ............. 2001 B. Estates of nonresidents not citizens ...... 2101 C. Miscellaneous ........................................ 2201 Subchapter A—Estates of Citizens or Residents Part I. Tax imposed. II. Credits against tax. III. Gross estate. IV. Taxable estate. PART I—TAX IMPOSED Sec. 2001. Imposition and rate of tax. 2002. Liability for payment. Editorial Notes AMENDMENTS 1976—Pub. L. 94–455, title XX, § 2001(c)(1)(N)(i), Oct. 4, 1976, 90 Stat. 1853, substituted ‘‘Imposition and rate of tax’’ for ‘‘Rate of tax’’ in item 2001. § 2001. Imposition and rate of tax (a) Imposition A tax is hereby imposed on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States. (b) Computation of tax The tax imposed by this section shall be the amount equal to the excess (if any) of— (1) a tentative tax computed under sub- section (c) on the sum of— (A) the amount of the taxable estate, and (B) the amount of the adjusted taxable gifts, over (2) the aggregate amount of tax which would have been payable under chapter 12 with re- spect to gifts made by the decedent after De- cember 31, 1976, if the modifications described in subsection (g) had been applicable at the time of such gifts. For purposes of paragraph (1)(B), the term ‘‘ad- justed taxable gifts’’ means the total amount of the taxable gifts (within the meaning of section 2503) made by the decedent after December 31, 1976, other than gifts which are includible in the gross estate of the decedent. Page 2564 TITLE 26—INTERNAL REVENUE CODE § 2001 (c) Rate schedule If the amount with respect to which the tentative tax to be computed is: The tentative tax is: Not over $10,000 ............. 18 percent of such amount. Over $10,000 but not over $20,000. $1,800, plus 20 percent of the excess of such amount over $10,000. Over $20,000 but not over $40,000. $3,800, plus 22 percent of the excess of such amount over $20,000. Over $40,000 but not over $60,000. $8,200 plus 24 percent of the excess of such amount over $40,000. Over $60,000 but not over $80,000. $13,000, plus 26 percent of the excess of such amount over $60,000. Over $80,000 but not over $100,000. $18,200, plus 28 percent of the excess of such amount over $80,000. Over $100,000 but not over $150,000. $23,800, plus 30 percent of the excess of such amount over $100,000. Over $150,000 but not over $250,000. $38,800, plus 32 percent of the excess of such amount over $150,000. Over $250,000 but not over $500,000. $70,800, plus 34 percent of the excess of such amount over $250,000. Over $500,000 but not over $750,000. $155,800, plus 37 percent of the excess of such amount over $500,000. Over $750,000 but not over $1,000,000. $248,300, plus 39 percent of the excess of such amount over $750,000. Over $1,000,000 ............... $345,800, plus 40 percent of the excess of such amount over $1,000,000. (d) Adjustment for gift tax paid by spouse For purposes of subsection (b)(2), if— (1) the decedent was the donor of any gift one-half of which was considered under section 2513 as made by the decedent’s spouse, and (2) the amount of such gift is includible in the gross estate of the decedent, any tax payable by the spouse under chapter 12 on such gift (as determined under section 2012(d)) shall be treated as a tax payable with re- spect to a gift made by the decedent. (e) Coordination of sections 2513 and 2035 If— (1) the decedent’s spouse was the donor of any gift one-half of which was considered under section 2513 as made by the decedent, and (2) the amount of such gift is includible in the gross estate of the decedent’s spouse by reason of section 2035, such gift shall not be included in the adjusted taxable gifts of the decedent for purposes of sub- section (b)(1)(B), and the aggregate amount de- termined under subsection (b)(2) shall be re- duced by the amount (if any) determined under subsection (d) which was treated as a tax pay- able by the decedent’s spouse with respect to such gift. (f) Valuation of gifts (1) In general If the time has expired under section 6501 within which a tax may be assessed under chapter 12 (or under corresponding provisions of prior laws) on— (A) the transfer of property by gift made during a preceding calendar period (as de- fined in section 2502(b)); or (B) an increase in taxable gifts required under section 2701(d), the value thereof shall, for purposes of com- puting the tax under this chapter, be the value as finally determined for purposes of chapter 12. (2) Final determination For purposes of paragraph (1), a value shall be treated as finally determined for purposes of chapter 12 if— (A) the value is shown on a return under such chapter and such value is not contested by the Secretary before the expiration of the time referred to in paragraph (1) with re- spect to such return; (B) in a case not described in subparagraph (A), the value is specified by the Secretary and such value is not timely contested by the taxpayer; or (C) the value is determined by a court or pursuant to a settlement agreement with the Secretary. For purposes of subparagraph (A), the value of an item shall be treated as shown on a return if the item is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the na- ture of such item. (g) Modifications to tax payable (1) Modifications to gift tax payable to reflect different tax rates For purposes of applying subsection (b)(2) with respect to 1 or more gifts, the rates of tax under subsection (c) in effect at the decedent’s death shall, in lieu of the rates of tax in effect at the time of such gifts, be used both to com- pute— (A) the tax imposed by chapter 12 with re- spect to such gifts, and (B) the credit allowed against such tax under section 2505, including in computing— (i) the applicable credit amount under section 2505(a)(1), and (ii) the sum of the amounts allowed as a credit for all preceding periods under sec- tion 2505(a)(2). (2) Modifications to estate tax payable to re- flect different basic exclusion amounts The Secretary shall prescribe such regula- tions as may be necessary or appropriate to carry out this section with respect to any dif- ference between— (A) the basic exclusion amount under sec- tion 2010(c)(3) applicable at the time of the decedent’s death, and (B) the basic exclusion amount under such section applicable with respect to any gifts made by the decedent. (Aug. 16, 1954, ch. 736, 68A Stat. 373; Pub. L. 94–455, title XX, § 2001(a)(1), Oct. 4, 1976, 90 Stat. 1846; Pub. L. 95–600, title VII, § 702(h)(1), Nov. 6, 1978, 92 Stat. 2930; Pub. L. 97–34, title IV, Page 2565 TITLE 26—INTERNAL REVENUE CODE § 2001 § 402(a)–(c), Aug. 13, 1981, 95 Stat. 300; Pub. L. 98–369, div. A, title I, § 21(a), July 18, 1984, 98 Stat. 506; Pub. L. 100–203, title X, § 10401(a)–(b)(2)(A), Dec. 22, 1987, 101 Stat. 1330–430, 1330–431; Pub. L. 103–66, title XIII, § 13208(a)–(b)(2), Aug. 10, 1993, 107 Stat. 469; Pub. L. 105–34, title V, §§ 501(a)(1)(D), 506(a), Aug. 5, 1997, 111 Stat. 845, 855; Pub. L. 105–206, title VI, § 6007(e)(2)(B), July 22, 1998, 112 Stat. 810; Pub. L. 105–277, div. J, title IV, § 4003(c), Oct. 21, 1998, 112 Stat. 2681–909; Pub. L. 107–16, title V, § 511(a)–(c), June 7, 2001, 115 Stat. 70; Pub. L. 111–312, title III, § 302(a)(2), (d)(1), Dec. 17, 2010, 124 Stat. 3301, 3302; Pub. L. 112–240, title I, § 101(c)(1), Jan. 2, 2013, 126 Stat. 2317; Pub. L. 115–97, title I, § 11061(b), Dec. 22, 2017, 131 Stat. 2091.) Editorial Notes AMENDMENTS 2017—Subsec. (g). Pub. L. 115–97 amended subsec. (g) generally. Prior to amendment, text read as follows: ‘‘For purposes of applying subsection (b)(2) with respect to 1 or more gifts, the rates of tax under subsection (c) in effect at the decedent’s death shall, in lieu of the rates of tax in effect at the time of such gifts, be used both to compute— ‘‘(1) the tax imposed by chapter 12 with respect to such gifts, and ‘‘(2) the credit allowed against such tax under sec- tion 2505, including in computing— ‘‘(A) the applicable credit amount under section 2505(a)(1), and ‘‘(B) the sum of the amounts allowed as a credit for all preceding periods under section 2505(a)(2).’’ 2013—Subsec. (c). Pub. L. 112–240 substituted in table separate tentative tax rates for amounts over $500,000 but not over $750,000, over $750,000 but not over $1,000,000, and over $1,000,000, respectively, for single tentative tax rate for amounts over $500,000. 2010—Subsec. (b)(2). Pub. L. 111–312, § 302(d)(1)(A), sub- stituted ‘‘if the modifications described in subsection (g)’’ for ‘‘if the provisions of subsection (c) (as in effect at the decedent’s death)’’. Subsec. (c). Pub. L. 111–312, § 302(a)(2), struck out par. (1) designation and heading preceding table, sub- stituted in table a single tentative tax rate for any amount over $500,000 for separate tentative tax rates for amounts ranging from over $500,000 to over $2,500,000, and struck out par. (2) which related to phasedown of maximum rate of tax. Subsec. (g). Pub. L. 111–312, § 302(d)(1)(B), added sub- sec. (g). 2001—Subsec. (c)(1). Pub. L. 107–16, § 511(a), sub- stituted in table provisions that if the amount on which the tax is computed is over $2,500,000, then the tentative tax is $1,025,800, plus 50% of the excess over $2,500,000 for provisions that if the amount on which the tax is computed is over $2,500,000 but not over $3,000,000, then the tentative tax is $1,025,800, plus 53% of the ex- cess over $2,500,000, and if the amount on which the tax is computed is over $3,000,000, then the tentative tax is $1,290,800, plus 55% of the excess over $3,000,000. Subsec. (c)(2). Pub. L. 107–16, § 511(c), added par. (2). Pub. L. 107–16, § 511(b), struck out heading and text of par. (2). Text read as follows: ‘‘The tentative tax deter- mined under paragraph (1) shall be increased by an amount equal to 5 percent of so much of the amount (with respect to which the tentative tax is to be com- puted) as exceeds $10,000,000 but does not exceed the amount at which the average tax rate under this sec- tion is 55 percent.’’ 1998—Subsec. (f). Pub. L. 105–206, § 6007(e)(2)(B), reen- acted heading without change and amended text gen- erally. Prior to amendment, text read as follows: ‘‘If— ‘‘(1) the time has expired within which a tax may be assessed under chapter 12 (or under corresponding provisions of prior laws) on the transfer of property by gift made during a preceding calendar period (as defined in section 2502(b)), and ‘‘(2) the value of such gift is shown on the return for such preceding calendar period or is disclosed in such return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the nature of such gift, the value of such gift shall, for purposes of computing the tax under this chapter, be the value of such gift as finally determined for purposes of chapter 12.’’ Subsec. (f)(2). Pub. L. 105–277 inserted concluding pro- visions. 1997—Subsec. (c)(2). Pub. L. 105–34, § 501(a)(1)(D), sub- stituted ‘‘the amount at which the average tax rate under this section is 55 percent’’ for ‘‘$21,040,000’’. Subsec. (f). Pub. L. 105–34, § 506(a), added subsec. (f). 1993—Subsec. (c)(1). Pub. L. 103–66, § 13208(a), sub- stituted in table provisions that if the amount on which the tax is computed is over $2,500,000 but not over $3,000,000, then the tentative tax is $1,025,800, plus 53% of the excess over $2,500,000 and if the amount on which the tax is computed is over $3,000,000, then the tentative tax is $1,290,800, plus 55% of the excess over $3,000,000 for provisions that if the amount on which the tax is computed is over $2,500,000, then the tentative tax is $1,025,800, plus 50% of the excess over $2,500,000. Subsec. (c)(2), (3). Pub. L. 103–66, § 13208(b)(1), (2), re- designated par. (3) as (2), struck out ‘‘($18,340,000 in the case of decedents dying, and gifts made, after 1992)’’ after ‘‘exceed $21,040,000’’, and struck out former par. (2) which related to the rates of tax on estates under this section for the years 1982 to 1992. 1987—Subsec. (b)(1). Pub. L. 100–203, § 10401(b)(2)(A)(i), substituted ‘‘under subsection (c)’’ for ‘‘in accordance with the rate schedule set forth in subsection (c)’’. Subsec. (b)(2). Pub. L. 100–203, § 10401(b)(2)(A)(ii), sub- stituted ‘‘the provisions of subsec. (c)’’ for ‘‘the rate schedule set forth in subsection (c)’’. Subsec. (c)(2)(A). Pub. L. 100–203, § 10401(a)(1), sub- stituted ‘‘1993’’ for ‘‘1988’’. Subsec. (c)(2)(D). Pub. L. 100–203, § 10401(a)(2), (3), sub- stituted in heading ‘‘After 1983 and before 1993’’ for ‘‘For 1984, 1985, 1986, or 1987’’, and in text ‘‘after 1983 and before 1993’’ for ‘‘in 1984, 1985, 1986, or 1987’’. Subsec. (c)(3). Pub. L. 100–203, § 10401(b)(1), added par. (3). 1984—Subsec. (c)(2)(A), (D). Pub. L. 98–369 substituted ‘‘1988’’ for ‘‘1985’’ in subpar. (A) and substituted ‘‘1984, 1985, 1986, or 1987’’ for ‘‘1984’’ in heading and text of sub- par. (D). 1981—Subsec. (b)(2). Pub. L. 97–34, § 402(c), inserted ‘‘which would have been’’ before ‘‘payable’’ and ‘‘, if the rate schedule set forth in subsection (c) (as in effect at the decedent’s death) had been applicable at the time of such gifts’’ after ‘‘December 31, 1976,’’. Subsec. (c). Pub. L. 97–34, § 402(a), (b)(1), designated existing provision as par. (1), inserted heading ‘‘In gen- eral’’ and substituted in table provision that if the amount computed is over $2,500,000 then the tentative tax is $1,025,800 plus 50% of the excess over $2,500,000 for provisions that if the amount computed is over $2,500,000 but not over $3,000,000, then the tentative tax is $1,025,800 plus 53% of the excess over $2,500,000, over $3,000,000 but not over $3,500,000 then the tentative tax is $1,290,000 plus 57% of the excess over $3,000,000, over $3,500,000 but not over $4,000,000 then the tentative tax is $1,575,800 plus 61% of the excess over $3,500,000, over $4,000,000 but not over $4,500,000 then the tentative tax is $1,880,800 plus 65% of the excess over $4,000,000, over $4,500,000 but not over $5,000,000 then the tentative tax is $2,205,800 plus 69% of the excess over $4,500,000, over $5,000,000 then the tentative tax is $2,550,800 plus 70% of the excess over $5,000,000, and added par. (2). 1978—Subsec. (e). Pub. L. 95–600 added subsec. (e). 1976—Pub. L. 94–455 substituted provisions setting a unified rate schedule for estate and gift taxes ranging from 18 percent for the first $10,000 in taxable transfers to 70 percent of taxable transfers in excess of $5,000,000, with provision for adjustments for gift taxes paid by Page 2566 TITLE 26—INTERNAL REVENUE CODE § 2001 spouses, for provisions setting an estate tax of 3 per- cent of the first $5,000 of the taxable estate to 77 per- cent of the taxable estate in excess of $10,000,000. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2017 AMENDMENT Pub. L. 115–97, title I, § 11061(c), Dec. 22, 2017, 131 Stat. 2091, provided that: ‘‘The amendments made by this section [amending this section and section 2010 of this title] shall apply to estates of decedents dying and gifts made after December 31, 2017.’’ EFFECTIVE DATE OF 2013 AMENDMENT Pub. L. 112–240, title I, § 101(c)(3), Jan. 2, 2013, 126 Stat. 2318, provided that: ‘‘(A) IN GENERAL.—Except as otherwise provided by in this paragraph, the amendments made by this sub- section [amending this section and section 2010 of this title] shall apply to estates of decedents dying, genera- tion-skipping transfers, and gifts made, after December 31, 2012. ‘‘(B) TECHNICAL CORRECTION.—The amendment made by paragraph (2) [amending section 2010 of this title] shall take effect as if included in the amendments made by section 303 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 [Pub. L. 111–312].’’ EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–312, title III, § 302(f), Dec. 17, 2010, 124 Stat. 3302, as amended by Pub. L. 113–295, div. A, title II, § 206(b)(2), Dec. 19, 2014, 128 Stat. 4027, provided that: ‘‘Except as otherwise provided in this section, the amendments made by this section [amending this sec- tion and sections 2010, 2502, 2505 and 2511 of this title] shall apply to estates of decedents dying, generation- skipping transfers, and gifts made, after December 31, 2009.’’ EFFECTIVE DATE OF 2001 AMENDMENT Pub. L. 107–16, title V, § 511(f)(1), (2), June 7, 2001, 115 Stat. 71, provided that: ‘‘(1) SUBSECTIONS (a) AND (b).—The amendments made by subsections (a) and (b) [amending this section] shall apply to estates of decedents dying, and gifts made, after December 31, 2001. ‘‘(2) SUBSECTION (c).—The amendment made by sub- section (c) [amending this section] shall apply to es- tates of decedents dying, and gifts made, after Decem- ber 31, 2002.’’ EFFECTIVE DATE OF 1998 AMENDMENTS Amendment by Pub. L. 105–277 effective as if included in the provision of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 4003(l) of Pub. L. 105–277, set out as a note under section 86 of this title. Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title. EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105–34, title V, § 501(f), Aug. 5, 1997, 111 Stat. 847, as amended by Pub. L. 105–206, title VI, § 6007(a)(2), July 22, 1998, 112 Stat. 807, provided that: ‘‘The amend- ments made by this section [amending this section and sections 2010, 2032A, 2102, 2503, 2505, 2631, 6018, and 6601 of this title] (other than the amendment made by sub- section (d) [amending section 2631 of this title]) shall apply to the estates of decedents dying, and gifts made, after December 31, 1997.’’ Pub. L. 105–34, title V, § 506(e)(1), Aug. 5, 1997, 111 Stat. 856, as amended by Pub. L. 105–206, title VI, § 6007(e)(1), July 22, 1998, 112 Stat. 809, provided that: ‘‘The amend- ments made by subsections (a), (c), and (d) [enacting section 7477 of this title and amending this section and section 2504 of this title] shall apply to gifts made after the date of the enactment of this Act [Aug. 5, 1997].’’ EFFECTIVE DATE OF 1993 AMENDMENT Pub. L. 103–66, title XIII, § 13208(c), Aug. 10, 1993, 107 Stat. 469, provided that: ‘‘The amendments made by this section [amending this section and section 2101 of this title] shall apply in the case of decedents dying and gifts made after December 31, 1992.’’ EFFECTIVE DATE OF 1987 AMENDMENT Pub. L. 100–203, title X, § 10401(c), Dec. 22, 1987, 101 Stat. 1330–431, provided that: ‘‘The amendments made by this section [amending this section and section 2502 of this title] shall apply in the case of decedents dying, and gifts made, after December 31, 1987.’’ EFFECTIVE DATE OF 1984 AMENDMENT Pub. L. 98–369, div. A, title I, § 21(b), July 18, 1984, 98 Stat. 506, provided that: ‘‘The amendments made by subsection (a) [amending this section] shall apply to the estates of decedents dying after, and gifts made after, December 31, 1983.’’ EFFECTIVE DATE OF 1981 AMENDMENT Pub. L. 97–34, title IV, § 402(d), Aug. 13, 1981, 95 Stat. 301, provided that: ‘‘The amendments made by this sec- tion [amending this section] shall apply to estates of decedents dying after, and gifts made after, December 31, 1981.’’ EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95–600, title VII, § 702(h)(3), Nov. 6, 1978, 92 Stat. 2931, provided that: ‘‘The amendments made by this subsection [amending this section and section 2602 of this title] shall apply with respect to the estates of decedents dying after December 31, 1976, except that such amendments shall not apply to transfers made be- fore January 1, 1977.’’ EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–455, title XX, § 2001(d)(1), Oct. 4, 1976, 90 Stat. 1854, provided that: ‘‘The amendments made by subsections (a) [enacting section 2010, amending this section and sections 2012 and 2035, and repealing section 2052 of this title] and (c)(1) [amending sections 2011, 2012, 2013, 2014, 2038, 2044, 2101, 2102, 2104, 2106, 2107, 2206, 2207, and 6018 of this title] shall apply to the estates of decedents dying after December 31, 1976; except that the amendments made by subsection (a)(5) [amending section 2035 of this title] and subparagraphs (K) and (L) of subsection (c)(1) [amending sections 2038 and 2104 of this title] shall not apply to transfers made before Jan- uary 1, 1977.’’ SHORT TITLE Pub. L. 91–614, § 1(a), Dec. 31, 1970, 84 Stat. 1836, pro- vided that: ‘‘This Act [enacting section 6905 of this title, section 1232a of Title 15, Commerce and Trade, and section 1033 of former Title 31, Money and Finance, amending sections 56, 1015, 1223, 2012, 2032, 2055, 2204, 2501, 2502, 2503, 2504, 2512, 2513, 2515, 2521, 2522, 2523, 4061, 4063, 4216, 4251, 4491, 6019, 6040, 6075, 6091, 6161, 6212, 6214, 6324, 6412, 6416, 6501, 6504, and 6512 of this title, and en- acting provisions set out as notes under sections 56, 2032, 2204, 2501, 4063, 4216, 4251, 4491, and 6905 of this title] may be cited as the ‘Excise, Estate, and Gift Tax Adjustment Act of 1970’.’’ SPECIAL ELECTION WITH RESPECT TO ESTATES OF DECEDENTS DYING IN 2010 Pub. L. 111–312, title III, § 301(c), Dec. 17, 2010, 124 Stat. 3300, provided that: ‘‘Notwithstanding subsection (a) [amending sections 121, 170, 684, 1014, 1040, 1221, 1246, 1291, 1296, 4947, 6018, 6019, 6075, and 7701 of this title and repealing sections 1022, 2210, 2664, and 6716 of this title], in the case of an estate of a decedent dying after De- Page 2567 TITLE 26—INTERNAL REVENUE CODE § 2010 cember 31, 2009, and before January 1, 2011, the executor (within the meaning of section 2203 of the Internal Rev- enue Code of 1986) may elect to apply such Code as though the amendments made by subsection (a) do not apply with respect to chapter 11 of such Code and with respect to property acquired or passing from such dece- dent (within the meaning of section 1014(b) of such Code). Such election shall be made at such time and in such manner as the Secretary of the Treasury or the Secretary’s delegate shall provide. Such an election once made shall be revocable only with the consent of the Secretary of the Treasury or the Secretary’s dele- gate. For purposes of section 2652(a)(1) of such Code, the determination of whether any property is subject to the tax imposed by such chapter 11 shall be made with- out regard to any election made under this sub- section.’’ CLARIFICATION OF TREATMENT OF CERTAIN EXEMPTIONS FOR PURPOSES OF FEDERAL ESTATE AND GIFT TAXES Pub. L. 98–369, div. A, title VI, § 641, July 18, 1984, 98 Stat. 939, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(a) GENERAL RULE.—Nothing in any provision of law exempting any property (or interest therein) from tax- ation shall exempt the transfer of such property (or in- terest therein) from Federal estate, gift, and genera- tion-skipping transfer taxes. In the case of any provi- sion of law enacted after the date of the enactment of this Act [July 18, 1984], such provision shall not be treated as exempting the transfer of property from Fed- eral estate, gift, and generation-skipping transfer taxes unless it refers to the appropriate provisions of the In- ternal Revenue Code of 1986 [formerly I.R.C. 1954]. ‘‘(b) EFFECTIVE DATE.— ‘‘(1) IN GENERAL.—The provisions of subsection (a) shall apply to the estates of decedents dying, gifts made, and transfers made on or after June 19, 1984. ‘‘(2) TREATMENT OF CERTAIN TRANSFERS TREATED AS TAXABLE.—The provisions of subsection (a) shall also apply in the case of any transfer of property (or inter- est therein) if at any time there was filed an estate or gift tax return showing such transfer as subject to Federal estate or gift tax. ‘‘(3) NO INFERENCE.—No inference shall arise from paragraphs (1) and (2) that any transfer of property (or interest therein) before June 19, 1984, is exempt from Federal estate and gift taxes.’’ REPORTS WITH TRANSFERS OF PUBLIC HOUSING BONDS Pub. L. 98–369, div. A, title VI, § 642, July 18, 1984, 98 Stat. 939, provided that: ‘‘(a) GENERAL RULE.—With respect to transfers of public housing bonds occurring after December 31, 1983, and before June 19, 1984, the taxpayer shall report the date and amount of such transfer and such other infor- mation as the Secretary of the Treasury or his delegate shall prescribe by regulations to allow the determina- tion of the tax and interest due if it is ultimately de- termined that such transfers are subject to estate, gift, or generation-skipping tax. ‘‘(b) PENALTY FOR FAILURE TO REPORT.—Any taxpayer failing to provide the information required by sub- section (a) shall be liable for a penalty equal to 25 per- cent of the excess of (1) the estate, gift, or generation- skipping tax that is payable assuming that such trans- fers are subject to tax, over (2) the tax payable assum- ing such transfers are not so subject.’’ § 2002. Liability for payment The tax imposed by this chapter shall be paid by the executor. (Aug. 16, 1954, ch. 736, 68A Stat. 374; Pub. L. 98–369, div. A, title V, § 544(b)(1), July 18, 1984, 98 Stat. 894; Pub. L. 101–239, title VII, § 7304(b)(2)(A), Dec. 19, 1989, 103 Stat. 2353.) Editorial Notes AMENDMENTS 1989—Pub. L. 101–239 substituted ‘‘The’’ for ‘‘Except as provided in section 2210, the’’. 1984—Pub. L. 98–369 inserted exception phrase. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101–239, title VII, § 7304(b)(3), Dec. 19, 1989, 103 Stat. 2353, provided that: ‘‘The amendments made by this subsection [amending this section and section 6018 of this title and repealing section 2210 of this title] shall apply to estates of decedents dying after July 12, 1989.’’ EFFECTIVE DATE OF 1984 AMENDMENT Pub. L. 98–369, div. A, title V, § 544(d), July 18, 1984, 98 Stat. 894, provided that: ‘‘The amendments made by this section [enacting section 2210 of this title and amending this section and sections 6018 and 6166 of this title] shall apply to those estates of decedents which are required to file returns on a date (including any ex- tensions) after the date of enactment of this Act [July 18, 1984].’’ PART II—CREDITS AGAINST TAX Sec. 2010. Unified credit against estate tax. [2011. Repealed.] 2012. Credit for gift tax. 2013. Credit for tax on prior transfers. 2014. Credit for foreign death taxes. 2015. Credit for death taxes on remainders. 2016. Recovery of taxes claimed as credit. Editorial Notes AMENDMENTS 2014—Pub. L. 113–295, div. A, title II, § 221(a)(95)(A)(i), Dec. 19, 2014, 128 Stat. 4051, which directed amendment of part II of subchapter A of chapter 11 of this title by striking item 2011 from the table of sections for ‘‘such subpart’’, was executed by striking item 2011 ‘‘Credit for State death taxes’’ from the table of sections for this part, to reflect the probable intent of Congress. 2004—Pub. L. 108–311, title IV, § 408(a)(20), Oct. 4, 2004, 118 Stat. 1192, added item 2011. 2001—Pub. L. 107–16, title V, § 532(c)(13), June 7, 2001, 115 Stat. 75, struck out item 2011 ‘‘Credit for State death taxes’’. 1976—Pub. L. 94–455, title XX, § 2001(c)(1)(N)(ii), Oct. 4, 1976, 90 Stat. 1853, added item 2010. § 2010. Unified credit against estate tax (a) General rule A credit of the applicable credit amount shall be allowed to the estate of every decedent against the tax imposed by section 2001. (b) Adjustment to credit for certain gifts made before 1977 The amount of the credit allowable under sub- section (a) shall be reduced by an amount equal to 20 percent of the aggregate amount allowed as a specific exemption under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) with respect to gifts made by the decedent after September 8, 1976. (c) Applicable credit amount (1) In general For purposes of this section, the applicable credit amount is the amount of the tentative