Estates of Decedents Dying During 1944 to 1949, Inclusive graph (B), be considered as "held as such community property." (ii) Where the value (at the time of such conversion) of the separate property so acquired by the decedent exceeded the value (at such time) of the separate property so acquired by the decedent's spouse, the rule in clause (i) shall be applied only with respect to the same portion of such separate property of the decedent as the portion which the value (as of such time) of such separate property so acquired by the decedent's spouse is of the value (as of such time) of the separate property so acquired by the decedent. Sec. 812. (e) (3) Definition.-For the purposes of this subsection an interest in property shall be considered as passing from the decedent to any person if and only if (A) such interest is bequeathed or devised to such person by the decedent; or (B) such interest is inherited by such person from the decedent; or (C) such interest is the dower or curtesy interest (or statutory interest in lieu thereof) of such person as surviving spouse of the decedent; or (D) such interest has been transferred to such person by the decedent at any time; or (E) such interest was, at the time of the decedent's death, held by such person and the decedent (or by them and any other person) in joint ownership with right of survivorship; or (F) the decedent had a power (either alone or in conjunction with any person) to appoint such interest and if he appoints or has appointed such interest to such person, or if such person takes such interest in default upon the release or nonexercise of such power; or (G) such interest consists of proceeds of insurance upon the life of the decedent receivable by such per son. Except as provided in subparagraph (F) or (G) of paragraph (1), where at the time of the decedent's death it is not possible to ascertain the particular person or persons to whom an interest in property may pass from the decedent, such interest shall, for the purposes of clauses (i) and (ii) of subparagraph (B) of paragraph (1), be considered as passing from the decedent to a person other than the surviving spouse. Sec. 812. (e) (4) Disclaimers.— (A) By Surviving Spouse. If under this subsection an interest would, in the absence of a disclaimer by the surviving spouse, be considered as passing from the decedent to such spouse, and if a disclaimer of such interest is made by such spouse, then such interest shall, for the purposes of this subsection, be 21b Sec. 812 (e) (1) (G) as added by Sec. 361 (a), R. A. of 1948, and later superseded by J. R. of July 1, 1948, is as follows: "Sec. 812 (e) (1) (G). Life insurance with power of appointment in surviving spouse.-In the case of proceeds of insurance upon the life of the decedent receivable in annual or more frequent installments commencing within one year after the decedent's death, if under the terms of the policy all amounts payable during the life of the surviving spouse are payable only to such spouse, and if such spouse has the power to appoint all amounts payable after such spouse's considered as passing to the person or persons entitled to receive such interest as a result of the disclaimer. (B) Disclaimer by Any Other Person.-If under this subsection an interest would, in the absence of a disclaimer by any person other than the surviving spouse, be considered as passing from the decedent to such person, and if a disclaimer of such interest is made by such person and as a result of such disclaimer the surviving spouse is entitled to receive such interest, then such interest shall, for the purposes of this subsection, be considered as passing, not to the surviving spouse, but to the person who made the disclaimer, in the same manner as if the disclaimer had not been made. Sec. 812 (e), supra, including subsection 812 (e) (1) (G) which is shown in footnote 21b, added to I. R. C. by Sec. 361 (a), R. A. of 1948. Sec. 361 (b) of said Act makes amendment applicable only with respect to estates of decedents dying after Dec. 31, 1947. Second Amendment Sec. 812 (e) (1) (G), shown in footnote 21b, which was added by Sec. 361 (a), R. A. of 1948, amended by J. R. of July 1, 1948 (62 Stat. 1214) as shown in underlined italics. Sec. 2 of said J. R. makes amendment applicable with respect to estates of decedents dying after Dec. 31, 1947. The effect of this amendment is to supersede Sec. 812 (e) (1) (G) as shown in footnote 21b as of the date of its enactment. Sec. 813. Credits against tax. Sec. 813. (a) Gift tax. Sec. 813. (a) (1) Revenue Act of 1924.-In case a tax has been imposed under section 319 of the Revenue Act of 1924, 43 Stat. 313, as amended by section 324 of the Revenue Act of 1926, 44 Stat. 86, upon any gift, and thereafter upon the death of the donor the amount thereof is required by any provision of this subchapter to be included in the gross estate of the decedent then there shall be credited against and applied in reduction of the estate tax, which would otherwise be chargeable against the estate of the decedent under the provisions of this subchapter, (after deducting from such tax the credit provided by section 813 (b)), an amount equal to the tax paid with respect to such gift; and in the event the donor has in any year paid the tax imposed by said section 319 with respect to a gift or gifts which upon the death of the donor must be included in his gross estate and a gift or gifts not required to be so included, then the amount of the tax which shall be deemed to have been paid with respect to the gift or gifts required to be so included shall be that proportion of the entire tax paid on account of all such gifts which the amount of the gift or gifts required to be so included bears to the total amount of gifts in that year. death (exercisable in favor of the estate of such spouse, whether or not the power is exercisable in favor of others) — (i) such proceeds shall, for the purposes of subparagraph (A), be considered as passing to the surviving spouse, and (ii) no part of such proceeds shall, for the purposes of subparagraph (B) (i), be considered as passing to any person other than the surviving spouse. This subparagraph shall be applicable only if, under the terms of the policy, such power in the surviving spouse to appoint, whether exercisable by will or during life, is exercisable by such spouse alone and in all events." Estates of Decedents Dying During 1944 to 1949, Inclusive Sec. 813 (a) (1), I. R. C., supra, originated 1942 Sec. 813. (a) (2) Revenue Act of 1932 or chapter 4. (A) If a tax has been paid under chapter 4 or under Title III of the Revenue Act of 1932, 47 Stat. 245, on a gift, and thereafter upon the death of the donor any amount in respect of such gift is required to be included in the value of the gross estate of the decedent for the purposes of this subchapter, then there shall be credited against the tax imposed by section 810 or 860 the amount of the tax paid under chapter 4 or under Title III of the Revenue Act of 1932 with respect to so much of the property which constituted the gift as is included in the gross estate, except that the amount of such credit shall not exceed an amount which bears the same ratio to the tax imposed by section 810 or 860 (after deducting from such tax the credits provided by section 813 (a) (1) and (b)) as the value (at the time of the gift or at the time of the death, whichever is lower) of so much of the property which constituted the gift as is included in the gross estate, bears to the value of the entire gross estate reduced by the aggregate amount of the deductions allowed under subsections (d) and (e) of section 812. (B) For the purposes of paragraph (A), the amount of tax paid for any year under chapter 4 or under Title III of the Revenue Act of 1932, with respeet to any property shall be an amount which bears the same ratio to the total tax paid for such year as the value of such property bears to the total amountof net gifts (computed without deduction of the spe eifie exemption) for such year, (B) In applying, with respect to any gift, the ratio stated in subparagraph (A), the value at the time of the gift or at the time of the death, referred to in such ratio, shall be reduced (i) by such amount as will properly reflect the amount of such gift which was excluded in determining (for the purposes of section 1003 (a), or of section 504 (a) of the Revenue Act of 1932) the total amount of gifts made during the year in which the gift was made; (ii) if deduction with respect to such gift is allowed under section 812 (e) (the so-called “marital deduction”)—then by an amount which bears the same ratio to such value (reduced as provided in clause (i) of this subparagraph) as the aggregate amount of the marital deductions allowed under section 812 (e) bears to the aggregate amount of such marital deductions computed without regard to subparagraph (H) of section 812 (e) (1); and (iii) if a deduction with respect to such gift is allowed under section 812 (d) (the so-called "charitable deduction")—then by the amount of such value, reduced as provided in clause (i) of this subparagraph. (C) Where the decedent was the donor of the gift but, under the provisions of section 1000 (f), the gift was considered as made one-half by his spouse (i) the term "the amount of the tax paid under chapter 4", as used in subparagraph (A) of this para graph, includes the amounts paid with respect to each half of such gift, the amount paid with respect to each being computed in the manner provided in subparagraph (D); and (ii) in applying, with respect to such gift, the ratio stated in subparagraph (A) of this paragraph, the value at the time of the gift or at the time of the death, referred to in such ratio, includes such value with respect to each half of such gift, each such value being reduced as provided in clause (i) of subparagraph (B) of this paragraph. (D) (i) For the purposes of subparagraph (A), the amount of tax paid under chapter 4, or under Title III of the Revenue Act of 1932, with respect to any gift shall be an amount which bears the same ratio to the total tax paid for the year in which the gift was made as the amount of such gift bears to the total amount of net gifts (computed without deduction of the specific exemption) for such year. (ii) For the purposes of clause (i) the "amount of such gift" shall be the amount included with respect to such gift in determining (for the purposes of section 1003 (a), or of section 504 (a) of the Revenue Act of 1932) the total amount of gifts made during such year, reduced by the amount of any deduction allowed with respect to such gift under section 1004 (a) (2), or under section 505 (a) (2) of the Revenue Act of 1932 (the so-called "charitable deduction") or under section 1004 (a) (3) (the so-called “marital deduction"). Sec. 813 (a) (2) (A), I. R. C., supra, amended by Sec. 363 (a), R. A. of 1948, by adding language in italics. Sec. 363 (e) of said Act makes amendment applicable only to estates of decedents dying after Dec. 31, 1947. Sec. 813 (a) (2) (B), L. R. C., supra, as shown in stricken type was in effect with respect to estates of decedents dying prior to Jan. 1, 1948, when it was amended by Sec. 363 (b), R. A. of 1948, as shown in italics. Sec. 813 (a) (2) (C) and (D) were added to the Code by this amendment. Sec. 363 (e) of said Act makes amendment applicable only to estates of decedents dying after Dec. 31, 1947. Sec. 813 (a) (2), I. R. C., supra, originated 1932 as Sec. 301 (b), R. A. of 1926, as amended by Sec. 801, R. A. of 1932. For any amendments prior to 1944, see— Sec. 813. (b) Estate, succession, legacy, and inheritance taxes.-The tax imposed by section 810 or 860 shall be credited with the amount of any estate, inheritance, legacy, or succession taxes actually paid to any State or Territory or the District of Columbia, or any possession of the United States, in respect of any property included in the gross estate (not including any such taxes paid with respect to the estate of a person other than the decedent). The credit allowed by this subsection shall not exceed 80 per centum of the tax imposed by section 810 or 860 (before deducting from such tax the credits provided by section 813 (a) (1) and (2)), and shall include only such taxes as were actually paid and credit therefor claimed within four years after the filing of the return required by section 821 or 864, except that Estates of Decedents Dying During 1944 to 1949, Inclusive Sec. 813. (b) (1) If a petition for redetermination of a deficiency has been filed with the Board of Tax Appeals within the time prescribed in section 871, then within such four-year period or before the expiration of 60 days after the decision of the Board becomes final. Sec. 813. (b) (2) If, under section 822 (a) (2) or section 871 (h), an extension of time has been granted for payment of the tax shown on the return, or of a deficiency, then within such four-year period or before the date of the expiration of the period of the extension. Sec. 821. (a) Requirement. Sec. 821. (a) (1) Returns by executor.-In all cases where the gross estate at the death of a citizen or resident exceeds the amount of the specific exemption provided in section 812 (a), the executor shall make a return under oath in duplicate, setting forth (1) the value of the gross estate of the decedent at the time of his death; (2) the deductions allowed under section 812; (3) the value of the net estate of the decedent as defined in section 812; and (4) the tax paid or payable thereon; or such part of such information as may at the time be ascertainable and such supplemental data as may be necessary to establish the correct tax. Sec. 821. (a) (2) Returns by beneficiaries.-If the executor is unable to make a complete return as to any part of the gross estate of the decedent, he shall include in his return a description of such part and the name of every person holding a legal or beneficial interest therein, and upon notice from the collector such person shall in like manner make a return as to such part of the gross estate. Sec. 821. (a) (3) Cross reference. For provision requiring a return where the gross estate exceeds $40,000, see section 937. Sec. 821. (b) Time for filing.-The return required of the executor under subsection (a) shall be filed at such times and in such manner as may be required by regulations made pursuant to law. Sec. 821. (c) Place for filing.-The return required of the executor under subsection (a) shall be filed with the collector of the district in which was the domicile of the decedent at the time of his death, or, if there was no such domicile in the United States, then the collector of the district in which is situated the part of the gross estate of the decedent in the United States, or, if such part of the gross estate is situated in more than one district, then the collector of internal revenue of such district as may be designated by the Commissioner. Sec. 822. (a) (1) General rule.-The tax imposed by this subchapter shall be due and payable fifteen months after the decedent's death. Sec. 822. (a) (2) Extension of time.-Where the Commissioner finds that the payment on the due date of any part of the amount determined by the executor as the tax would impose undue hardship upon the estate, the Commissioner may extend the time for payment of any such part not to exceed ten years from the due date. In such case the amount in respect of which the extension is granted shall be paid on or before the date of the expiration of the period of the extension, and the running of the statute of limitations for assessment and collection, as provided in section 874, shall be suspended for the period of any such extension. If an extension is granted, the Commissioner may, if he deems it necessary, require the Estates of Decedents Dying During 1944 to 1949, Inclusive Sec. 823. Duplicate receipts. The collector shall grant to the person paying the tax duplicate receipts, either of which shall be sufficient evidence of such payment, and shall entitle the executor to be credited and allowed the amount thereof by any court having jurisdiction to audit or settle his accounts. Sec. 823, I. R. C., supra, originated 1916 as Sec. 207, R. A. of 1916. For any amendments prior to 1944, see Eighth Edition, p. 526, Ninth Edition, p. 996. Sec. 824. Examination of return and determination of tax. As soon as practicable after the return is filed the Commissioner shall examine it and shall determine the correct amount of the tax. Sec. 824, I. R. C., supra, originated 1924 as Sec. 306, R. A. of 1924. For any amendments prior to 1944, see Eighth Edition, p. 515, Sec. 825. Discharge of executor from personal liability. Sec. 825. (a) Application for discharge.—If the executor makes written application to the Commissioner for determination of the amount of the tax and discharge from personal liability therefor, the Commissioner (as soon as possible, and in any event within one year after the making of such application, or, if the application is made before the return is filed, then within one year after the return is filed, but not after the expiration of the period prescribed for the assessment of the tax in sections 874 and 875) shall notify the executor of the amount of the tax. The executor, upon payment of the amount of which he is notified, 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. Sec. 825. (b) Cross reference. For continuance of lien upon the gross estate after discharge of executor, see section 827 (c). Sec. 825, I. R. C., supra, originated 1921 as Sec. 407, R. A. of 1921. For any amendments prior to 1944, see Eighth Edition, p. 526, Ninth Edition, p. 996. Sec. 826. Collection of unpaid tax. Sec. 826. (a) Sale of property.-If the tax herein imposed is not paid on or before the due date thereof the collector shall, upon instruction from the Commissioner, proceed to collect the tax under the provisions of general law; or appropriate proceedings may be commenced in any court of the United States having jurisdiction, in the name of the United States, to subject the property of the decedent to be sold under the judgment or decree of the court. From the proceeds of such sale the amount of the tax, together with the costs and expenses of every description to be allowed by the court, shall be first paid, and the balance shall be deposited according to the order of the court, to be paid under its direction to the person entitled thereto. This subsection in so far as it applies to the collection of a deficiency shall be subject to the provisions of sections 871 and 891. Sec. 826 (a), I. R. C., supra, originated 1916 as For any amendments prior to 1944, see— Sec. 826. (b) 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 subchapter 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. Sec. 826 (b), supra, I. R. C., originated 1916 as For any amendments prior to 1944, see Eighth Edition, p. 528, Sec. 826. (c) Liability of life insurance beneficiaries.-Unless the decedent directs otherwise in his will, if any part of the gross estate upon which tax has been paid consists of proceeds of policies of insurance upon 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 sum of the net estate and the amount of the exemption allowed in computing the net estate determined under section 935 (c). 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 812 (e) (the so-called "marital deduction"), this subsection 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 subsection. Estates of Decedents Dying During 1944 to 1949, Inclusive Sec. 826 (c), I. R. C., supra, amended by Sec. 365 (a), R. A. of 1948, by adding language in italics. Sec. 365 (c) of said Act makes amendment applicable to estates of decedents dying after Dec. 31, 1947. Sec. 826 (c), I. R. C., supra, originated 1918 as Sec. 409, R. A. of 1918. For any amendments prior to 1944, see- Ninth Edition, p. 1000. Sec. 826. (d) 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 upon which the tax has been paid consists of the value of property included in the gross estate under section 811 (f), 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 sum of the net estate and the amount of the exemption allowed in computing the net estate, determined under section 935 (c), or section 861, as the case may be. 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 812 (e) (the so-called “marital deduction”), this subsection 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 812 (e) 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 subsection. Sec. 826 (d), I. R. C., supra, amended by Sec. 365 (b) R. A. of 1948, by adding language in italics. Sec. 365 (c) of said Act makes amendment applicable only to estates of decedents dying after Dec. 31, 1947. See fn. 21a following Sec. 811 (f), supra. Sec. 826 (d), I. R. C., supra, originated 1942 as For any amendments prior to 1944, see- Sec. 827. Lien for tax. Sec. 827. (a) Upon gross estate.-Unless the tax is sooner paid in full, it shall be a lien for ten years upon the gross estate of the decedent, except that such part of the gross estate as is used for the payment of charges against the estate and expenses of its administration, allowed by any court having jurisdiction thereof, shall be divested of such lien. If the Commissioner is satisfied that the tax liability of an estate has been fully discharged or provided for, he may, under regulations prescribed by him with the approval of the Secretary, issue his certificate, releasing any or all property of such estate from the lien herein imposed. Sec. 827 (a), I. R. C., supra, originated 1916 as For any amendments prior to 1944, see Eighth Edition, p. 528, Ninth Edition, p. 1002. Ser. 827. (b) Liability of transferee, etc.-If the tax herein imposed is not paid when due, then the spouse, transferee, trustee, surviving tenant, person For any amendments prior to 1944, see- Ninth Edition, p. 1002. Sec. 827. (c) Continuance after discharge of executor.-The provisions of section 825 shall not operate as a release of any part of the gross estate from the lien for any deficiency that may thereafter be determined to be due, unless the title to such part of the gross estate has passed to a bona fide purchaser for value, in which case such part shall not be subject to a lien or to any claim or demand for any such deficiency, but the lien shall attach to the consideration received from such purchaser by the heirs, legatees, devisees, or distributees. Sec. 827 (c), I. R. C., supra, originated 1921 as For any amendments prior to 1944, see- Sec. 827. (d) Cross reference. For authority of collector to release lien, see sections 3673 and 3674. Sec. 828. Cross references. For payment of tax in case of estates in China, see Supplement E of Part IV. For interest, additions to tax, and penalties, see Supplement B of Part IV. For general provisions relating to assessment, collection, closing agreements, compromises, and refunds, see chapters 35, 36, and 37 of subtitle D. Subpart III-Miscellaneous Provisions Sec. 840. Other laws applicable. All administrative, special, or stamp provisions of law, including the law relating to the assessment of taxes, so far as applicable, shall be extended to and made a part of this subchapter. Sec. 840, I. R. C., supra, originated 1916 as Sec. 211, R. A. of 1916. For any amendments prior to 1944, see Eighth Edition, p. 538, Ninth Edition, p. 1004. |