26 U.S.C. § 2108 — Application of pre-1967 estate tax provi-

Page 2625 TITLE 26—INTERNAL REVENUE CODE § 2108 115 Stat. 75; Pub. L. 108–357, title VIII, § 804(a)(3), Oct. 22, 2004, 118 Stat. 1570.) Editorial Notes AMENDMENTS 2004—Subsec. (a). Pub. L. 108–357 reenacted heading without change and amended text of subsec. (a) gen- erally, substituting provisions relating to imposition of tax on the transfer of the taxable estate of every dece- dent nonresident not a citizen of the United States if the date of death occurs during a taxable year with re- spect to which the decedent is subject to tax under sec- tion 877(b), for provisions relating to imposition of tax on the transfer of the taxable estate of every decedent nonresident not a citizen of the United States if, within the 10-year period ending with the date of death, such decedent lost United States citizenship, unless such loss did not have for one of its principal purposes the avoidance of taxes, and provisions describing individ- uals to be treated as having a principal purpose to avoid taxes. 2001—Subsec. (c)(3). Pub. L. 107–16 substituted ‘‘2012 and 2013’’ for ‘‘2011 to 2013, inclusive,’’. 1997—Subsec. (c)(2)(B)(i). Pub. L. 105–34, § 1602(g)(6)(A), substituted ‘‘such foreign country as the value of the property subjected to such taxes by such foreign coun- try and’’ for ‘‘such foreign country in respect of prop- erty included in the gross estate as the value of the property’’. Subsec. (c)(2)(C). Pub. L. 105–34, § 1602(g)(6)(B), amend- ed heading and text of subpar. (C) generally. Prior to amendment, text read as follows: ‘‘For purposes of sub- paragraph (B), a property’s proportionate share is the percentage of the value of the property which is in- cluded in the gross estate solely by reason of sub- section (b) bears to the total value of the gross estate.’’ 1996—Subsec. (a). Pub. L. 104–191, § 511(e)(1)(A), sub- stituted ‘‘Treatment of expatriates’’ for ‘‘Rate of tax’’ in heading and amended text generally. Prior to amendment, text read as follows: ‘‘A tax computed in accordance with the table contained in section 2001 is hereby imposed on the transfer of the taxable estate, determined as provided in section 2106, of every dece- dent nonresident not a citizen of the United States dying after November 13, 1966, if after March 8, 1965, and within the 10-year period ending with the date of death such decedent lost United States citizenship, unless such loss did not have for one of its principal purposes the avoidance of taxes under this subtitle or subtitle A.’’ Subsec. (b)(2). Pub. L. 104–191, § 511(e)(1)(C), sub- stituted ‘‘more than 50 percent of—’’ for ‘‘more than 50 percent of the total combined voting power of all class- es of stock entitled to vote of such foreign corpora- tion,’’ and added subpars. (A) and (B). Subsec. (c)(2), (3). Pub. L. 104–191, § 511(e)(1)(B), added par. (2) and redesignated former par. (2) as (3). Subsec. (d). Pub. L. 104–191, § 511(f)(2)(A), redesignated subsec. (e) as (d) and struck out former subsec. (d) which read as follows: ‘‘(d) EXCEPTION FOR LOSS OF CITIZENSHIP FOR CERTAIN CAUSES.—Subsection (a) shall not apply to the transfer of the estate of a decedent whose loss of United States citizenship resulted from the application of section 301(b), 350, or 355 of the Immigration and Nationality Act, as amended (8 U.S.C. 1401(b), 1482, or 1487).’’ Subsec. (e). Pub. L. 104–191, § 511(f)(2)(A), added sub- sec. (e). Former subsec. (e) redesignated (d). 1976—Subsec. (a). Pub. L. 94–455, § 1902(a)(6), sub- stituted ‘‘November 13, 1966’’ for ‘‘the date of enact- ment of this section’’ after ‘‘dying after’’. Subsec. (c). Pub. L. 94–455, § 2001(c)(1)(E)(ii), sub- stituted provisions relating to unified credit for ‘‘The tax imposed by subsection (a) shall be credited with the amounts determined in accordance with section 2102.’’ Subsec. (e). Pub. L. 94–455, § 1906(b)(13)(A), struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–357 applicable to individ- uals who expatriate after June 3, 2004, see section 804(f) of Pub. L. 108–357, set out as a note under section 877 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 1997 AMENDMENT Amendment by Pub. L. 105–34 effective as if included in the provisions of the Health Insurance Portability and Accountability Act of 1996, Pub. L. 104–191, to which such amendment relates, see section 1602(i) of Pub. L. 105–34, set out as a note under section 26 of this title. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–191 applicable to individ- uals losing United States citizenship on or after Feb. 6, 1995, and to long-term residents of the United States with respect to whom an event described in section 877(e)(1)(A) or (B) of this title occurs on or after Feb. 6, 1995, with special rule for certain individuals who per- formed an act of expatriation specified in section 1481(a)(1)–(4) of Title 8, Aliens and Nationality, before Feb. 6, 1995, see section 511(g) of Pub. L. 104–191, set out as a note under section 877 of this title. 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. Amendment by section 2001(c)(1)(E)(ii) of Pub. L. 94–455 applicable to estates of decedents dying after Dec. 31, 1976, see section 2001(d)(1) of Pub. L. 94–455, set out as a note under section 2001 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. § 2108. Application of pre-1967 estate tax provi- sions (a) Imposition of more burdensome tax by for- eign 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 coun- try 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 re- vise or reduce such tax so that it is no more burdensome than the tax imposed by this sub- chapter 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 sec- tion to the transfer of estates of decedents who were residents of such foreign country, 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—