26 U.S.C. § 2201 — Combat zone-related deaths of members

Page 2626 TITLE 26—INTERNAL REVENUE CODE § 2201 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 deter- mined under this subchapter without regard to amendments made to sections 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 No- vember 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 sub- section (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 bur- densome than the tax imposed by this sub- chapter 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 Presi- dent 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 imple- ment this section. (Added Pub. L. 89–809, title I, § 108(f), Nov. 13, 1966, 80 Stat. 1573; amended Pub. L. 94–455, title XIX, §§ 1902(a)(6), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1805, 1834.) Editorial Notes AMENDMENTS 1976—Subsec. (a). Pub. L. 94–455, § 1902(a)(6), sub- stituted ‘‘November 13, 1976’’ for ‘‘the date of enact- ment 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 AMENDMENT Amendment by section 1902(a)(6) of Pub. L. 94–455 ap- plicable 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 dece- dents dying after Nov. 13, 1966, see section 108(i) of Pub. L. 89–809, set out as an Effective Date of 1966 Amend- ment note under section 2101 of this title. Subchapter C—Miscellaneous Sec. 2201. Combat zone-related deaths of members of the Armed Forces, deaths of astronauts, and deaths of victims of certain terrorist attacks. Sec. [2202. Repealed.] 2203. Definition of executor. 2204. Discharge of fiduciary from personal liability. 2205. Reimbursement out of estate. 2206. Liability of life insurance beneficiaries. 2207. Liability of recipient of property over which decedent had power of appointment. 2207A. Right of recovery in the case of certain mar- ital deduction property. 2207B. Right of recovery where decedent retained in- terest. 2208. Certain residents of possessions considered citizens of the United States. 2209. Certain residents of possessions considered nonresidents not citizens of the United States. [2210. Repealed.] Editorial Notes AMENDMENTS 2010—Pub. L. 111–312, title III, § 301(a), Dec. 17, 2010, 124 Stat. 3300, amended analysis to read as if amend- ment by Pub. L. 107–16, § 501(c)(1), had never been en- acted. See 2001 Amendment note below. 2003—Pub. L. 108–121, title I, § 110(c)(2)(B), Nov. 11, 2003, 117 Stat. 1342, inserted ‘‘, deaths of astronauts,’’ after ‘‘Forces’’ in item 2201. 2002—Pub. L. 107–134, title I, § 103(c), Jan. 23, 2002, 115 Stat. 2431, substituted ‘‘Combat zone-related deaths of members of the Armed Forces and deaths of victims of certain terrorist attacks.’’ for ‘‘Members of the Armed Forces dying in combat zone or by reason of combat- zone-incurred wounds, etc.’’ in item 2201. 2001—Pub. L. 107–16, title V, § 501(c)(1), June 7, 2001, 115 Stat. 69, added item 2210 ‘‘Termination’’. 1989—Pub. L. 101–239, title VII, § 7304(b)(2)(C), Dec. 19, 1989, 103 Stat. 2353, struck out item 2210 ‘‘Liability for payment in case of transfer of employer securities to an employee stock ownership plan or a worker-owned cooperative’’. 1988—Pub. L. 100–647, title III, § 3031(f)(2), Nov. 10, 1988, 102 Stat. 3638, added item 2207B. 1984—Pub. L. 98–369, div. A, title V, § 544(b)(2), July 18, 1984, 98 Stat. 894, added item 2210. 1981—Pub. L. 97–34, title IV, § 403(d)(4)(B), Aug. 13, 1981, 95 Stat. 305, added item 2207A. 1976—Pub. L. 94–455, title XIX, § 1902(b)(1), Oct. 4, 1976, 90 Stat. 1806, struck out item 2202 ‘‘Missionaries in for- eign service’’. 1975—Pub. L. 93–597, § 6(b)(3), Jan. 2, 1975, 88 Stat. 1953, substituted ‘‘Members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.’’ for ‘‘Members of the Armed Forces dying during an induction period.’’ in item 2201. 1970—Pub. L. 91–614, title I, § 101(d)(3), Dec. 31, 1970, 84 Stat. 1837, substituted ‘‘Discharge of fiduciary from personal liability’’ for ‘‘Discharge of executor from per- sonal liability’’ in item 2204. 1960—Pub. L. 86–779, § 4(b)(2), Sept. 14, 1960, 74 Stat. 1000, added item 2209. 1958—Pub. L. 85–866, title I, § 102(c)(4), Sept. 2, 1958, 72 Stat. 1675, added item 2208. § 2201. Combat zone-related deaths of members of the Armed Forces, deaths of astronauts, and deaths of victims of certain terrorist at- tacks (a) In general Unless 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 sec- tion 2001(c). (b) Qualified decedent For purposes of this section, the term ‘‘quali- fied decedent’’ means— Page 2627 TITLE 26—INTERNAL REVENUE CODE § 2201 (1) any citizen or resident of the United States dying while in active service of the Armed Forces of the United States, if such de- cedent— (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 re- spect to which the ten- tative tax to be com- puted is: The tentative tax is: Not over $150,000 ........... 1 percent of the amount by which such amount ex- ceeds $100,000. Over $150,000 but not over $200,000. $500 plus 2 percent of the ex- cess 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 credit In the case of an estate to which this section applies, subsection (a) shall not apply in deter- mining the credit under section 2010. (Aug. 16, 1954, ch. 736, 68A Stat. 401; Pub. L. 93–597, § 6(b)(1), (2), Jan. 2, 1975, 88 Stat. 1953; Pub. L. 94–455, title XIX, § 1902(a)(7)(A), Oct. 4, 1976, 90 Stat. 1805; Pub. L. 107–16, title V, § 532(c)(9), June 7, 2001, 115 Stat. 75; Pub. L. 107–134, title I, § 103(a), (b)(3), Jan. 23, 2002, 115 Stat. 2430, 2431; Pub. L. 108–121, title I, § 110(c)(1), (2)(A), Nov. 11, 2003, 117 Stat. 1342.) Editorial Notes AMENDMENTS 2003—Pub. L. 108–121, § 110(c)(2)(A), inserted ‘‘, deaths of astronauts,’’ after ‘‘Forces’’ in section catchline. Subsec. (b)(3). Pub. L. 108–121, § 110(c)(1), added par. (3). 2002—Pub. L. 107–134 amended section catchline and text of section generally, substituting present provi- sions for provisions which had stated that the addi- tional estate tax as defined in former section 2011(d) should not apply to the transfer of the taxable estate of a citizen or resident of the United States dying while in active service as a member of the Armed Forces of the United States, if such decedent was killed in action while serving in a combat zone, as determined under section 112(c), or died as a result of wounds, disease, or injury suffered, while serving in a combat zone (as de- termined under section 112(c)), and while in line of duty, by reason of a hazard to which he was subjected as an incident of such service. 2001—Pub. L. 107–16, § 532(c)(9)(B), which added con- cluding provisions which read as follows: ‘‘For purposes of this section, the additional estate tax is the dif- ference between the tax imposed by section 2001 or 2101 and the amount equal to 125 percent of the maximum credit provided by section 2011(b), as in effect before its repeal by the Economic Growth and Tax Relief Rec- onciliation Act of 2001.’’, was repealed by Pub. L. 107–134, § 103(b)(3). See Effective Date of 2002 Amend- ment note below. Pub. L. 107–16, § 532(c)(9)(A), which struck out ‘‘as de- fined in section 2011(d)’’ after ‘‘The additional estate tax’’ in introductory provisions, was repealed by Pub. L. 107–134, § 103(b)(3). See Effective Date of 2002 Amend- ment note below. 1975—Pub. L. 93–597, as amended by Pub. L. 94–455, § 1902(a)(7)(A), struck out ‘‘during an induction period (as defined in section 112(c)(5))’’ after ‘‘resident of the United States dying’’, and substituted ‘‘Members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.’’ for ‘‘Members of the Armed Forces dying during an induction period’’ in section catchline. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2003 AMENDMENT Pub. L. 108–121, title I, § 110(c)(3), Nov. 11, 2003, 117 Stat. 1343, provided that: ‘‘The amendments made by this subsection [amending this section] shall apply to estates of decedents dying after December 31, 2002.’’ EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107–134 applicable to estates of decedents dying on or after Sept. 11, 2001, and, in the case of individuals dying as a result of the Apr. 19, 1995, terrorist attack, dying on or after Apr. 19, 1995, with provisions relating to waiver of limitations, see section 103(d) of Pub. L. 107–134, set out as a note under section 2053 of this title. EFFECTIVE DATE OF 2001 AMENDMENT Amendment by Pub. L. 107–16 applicable to estates of decedents dying, and generation-skipping transfers, after Dec. 31, 2004, see section 532(d) of Pub. L. 107–16, set out as a note under section 2012 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–455, title XIX, § 1902(a)(7)(B), Oct. 4, 1976, 90 Stat. 1805, provided that: ‘‘The amendment made by subsection (A) [amending section 6(b)(1) of Pub. L. 93–597] is effective July 1, 1973.’’ EFFECTIVE DATE OF 1975 AMENDMENT Pub. L. 93–597, § 6(c), Jan. 2, 1975, 88 Stat. 1953, pro- vided that: ‘‘The amendments made by this section Page 2628 TITLE 26—INTERNAL REVENUE CODE [§ 2202 [amending this section and section 1034 of this title] shall take effect on July 1, 1973.’’ [§ 2202. Repealed. Pub. L. 94–455, title XIX, § 1902(a)(8), Oct. 4, 1976, 90 Stat. 1805] Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 401; June 25, 1959, Pub. L. 86–70, § 22(a), 73 Stat. 146; July 12, 1960, Pub. L. 86–624, § 18(b), 74 Stat. 416, related to the pre- sumption that missionaries duly commissioned and serving under boards of foreign missions are residents of the State or the District of Columbia wherein they resided at the time of their commission and departure for service. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to estates of decedents dying after Oct. 4, 1976, see section 1902(c)(1) of Pub. L. 94–455, set out as an Effective Date of 1976 Amendment note under section 2012 of this title. § 2203. Definition of executor The term ‘‘executor’’ wherever it is used in this title in connection with the estate tax im- posed by this chapter means the executor or ad- ministrator of the decedent, or, if there is no ex- ecutor or administrator appointed, qualified, and acting within the United States, then any person in actual or constructive possession of any property of the decedent. (Aug. 16, 1954, ch. 736, 68A Stat. 401.) § 2204. Discharge of fiduciary from personal li- ability (a) General rule If 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 no- tify 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 dis- charged from personal liability for any defi- ciency in tax thereafter found to be due and shall be entitled to a receipt or writing showing such discharge. (b) Fiduciary other than the executor If a fiduciary (not including a fiduciary in re- spect of the estate of a nonresident decedent) other than the executor makes written applica- tion 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 li- ability under subsection (a), or upon the expira- tion of 6 months after the making of such appli- cation 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 fidu- ciary is not liable for any such tax. Such appli- cation shall be accompanied by a copy of the in- strument, if any, under which such fiduciary is acting, a description of the property held by the fiduciary, and such other information for pur- poses of carrying out the provisions of this sec- tion as the Secretary may require by regula- tions. 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 pay- ment 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 determina- tion that he is not liable for any such tax, the fiduciary shall be discharged from personal li- ability 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 6324A For purposes of the second sentence of sub- section (a) and the last sentence of subsection (b), an agreement which meets the requirements of section 6324A (relating to special lien for es- tate 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 returns If the executor in good faith relies on gift tax returns furnished under section 6103(e)(3) for de- termining 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 attrib- utable 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. (Aug. 16, 1954, ch. 736, 68A Stat. 401; Pub. L. 91–614, title I, § 101(d)(1), (f), Dec. 31, 1970, 84 Stat. 1836, 1838; Pub. L. 94–455, title XIX, §§ 1902(a)(9), 1906(b)(13)(A), title XX, § 2004(d)(2), (f)(4), (6), Oct. 4, 1976, 90 Stat. 1805, 1834, 1870, 1872; Pub. L. 95–600, title VII, § 702(p)(1), Nov. 6, 1978, 92 Stat. 2937; Pub. L. 97–34, title IV, § 422(e)(1), (3), Aug. 13, 1981, 95 Stat. 316.) Editorial Notes AMENDMENTS 1981—Subsecs. (a) to (c). Pub. L. 97–34, § 422(e)(1), (3), struck out reference to section 6166A in subsecs. (a) and (b), and two such references in subsec. (c). 1978—Subsec. (d). Pub. L. 95–600 added subsec. (d). 1976—Subsec. (a). Pub. L. 94–455, §§ 1906(b)(13)(A), 2004(f)(6), substituted ‘‘6166 or 6166A’’ for ‘‘or 6166’’ after ‘‘6161, 6163’’ and struck out ‘‘or his delegate’’ in two places after ‘‘Secretary’’. Subsec. (b). Pub. L. 94–455, §§ 1902(a)(9), 1906(b)(13)(A), 2004(f)(4), (6), substituted ‘‘6166 or 6166A’’ for ‘‘or 6166’’ after ‘‘6161, 6163’’, ‘‘has been’’ for ‘‘has not been’’ after ‘‘payment of which’’, and struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Subsec. (c). Pub. L. 94–455, § 2004(d)(2), added subsec. (c). 1970—Pub. L. 91–614, § 101(d)(1)(A), substituted ‘‘fidu- ciary’’ for ‘‘executor’’ in section catchline.