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tax is being computed under the laws applicable to such years or calendar quarters.

(2) Section 2522.-Section 2522 (relating to charitable and similar gifts) is amended by deleting "year" each place it appears and inserting in lieu thereof "quarter".

(3) Section 2523.-Subsection (a) of section 2523 (relating to gifts to a spouse) is amended by deleting "year" each place it appears and inserting in lieu thereof "quarter".

(d) Miscellaneous Amendments.

(1) Paragraph (2) of subsection (d) of section 1015 (relating to increased basis for gift tax paid) is amended

(A) by deleting "calendar year" the first time it appears therein and inserting in lieu thereof "calendar quarter (or calendar year if the gift was made before January 1, 1971)", and

(B) by deleting "calendar year" every other place it appears therein and inserting in lieu thereof "calendar quarter or year".

(2) Section 2012.

(A) Paragraph (1) of subsection (b) of section 2012 (relating to credit for gift tax) and paragraph (1) of subsection (d) of such section are each amended by deleting "the year" and inserting in lieu thereof "the calendar quarter (or calendar year if the gift was made before January 1, 1971)".

(B) Subsection (d) of section 2012 is amended by deleting "such year" each place it appears therein and inserting in lieu thereof "such quarter or year".

(3) Section 6019 (relating to gift tax returns) is amended by deleting "year" each place it appears and inserting in lieu thereof "quarter".

(4) Subsection (b) of section 6075 (relating to time for filing gift tax returns) is amended to read as follows:

"(b) Gift Tax Returns.-Returns made under section 6019 (relating to gift taxes) shall be filed on or before the last day of the first month following the close of the calendar quarter."

(5) Paragraph (1) of subsection (c) of section 6212 (relating to notice of deficiency) is amended by deleting "calendar year" and inserting in lieu thereof "calendar quarter".

(6) Subsection (b) of section 6214 (relating to determination by Tax Court) is amended to read as follows:

"(b) Jurisdiction Over Other Years or Quarters.-The Tax Court in redetermining a deficiency of income tax for any taxable year or of gift tax for any calendar year or calendar quarter shall consider such facts with relation to the taxes for other years or calendar quarters as may be necessary correctly to redetermine the amount of such deficiency, but in so doing shall have no jurisdiction to determine whether or not the tax for any other year or calendar quarter has been overpaid or underpaid."

(7) Subsection (b) of section 6324 (relating to lien for gift tax) is amended by deleting "calendar year" and inserting in lieu thereof "period for which the return was filed".

(8) Paragraph (2) of section 6501 (e) (relating to limitations on assessment and collection) is amended by deleting "during

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the year" and inserting in lieu thereof "during the period for which the return was filed".

(9) Section 6512 (relating to limitations in case of, petition to Tax Court) is amended by deleting "the same calendar year" each place it appears therein and inserting in lieu thereof "the. same calendar year or calendar quarter".

(e) Effective Date.-The amendments made by this section shall be effective with regard to gifts made after December 31, 1970.

SEC. 3. ESTIMATED ESTATE TAX.

(a) Declaration of Estimated Estate Tax.

(1) Subpart D of part II of subchapter A of chapter 61 (relating to information and returns) is amended by adding at the end thereof the following new section:

"SEC. 6022. DECLARATION OF ESTIMATED ESTATE TAX. "(a) Requirement of Declaration by Executor.-In all cases where the value of the gross estate, as defined in section 2031 or section 2103, at the death of every decedent, whether citizen, resident, or nonresident not a citizen of the United States exceeds $150,000, the executor as defined in section 2203, shall make a declaration of the estimated estate tax for the estate of the decedent.

"(b) Estimated Estate Tax.--For purposes of this title, the term "estimated estate tax" means the amount which the executor estimates as the amount of estate tax which would be imposed under chapter 11 on the transfer of the taxable estate of the decedent if section 2032 (relating to alternate valuation) had not been enacted.

"(c) Contents of Declaration.-The declaration shall contain such pertinent information as the Secretary or his delegate may by forms or regulations prescribe.

"(d) Requirement of Declaration by Beneficiaries.-If the executor is unable to make a complete declaration, as required by subparagraph (a), as to any part of the gross estate of the decedent, he shall include in his declaration a description of such part and the name of every person holding a legal or beneficial interest therein. Upon notice from the Secretary or his delegate such person shall in like manner make a declaration as to such part of the gross estate."

(2) The table of sections for subpart D of part II of subchapter A of chapter 61 is amended by adding at the end thereof the following: "Sec. 6022. Declaration of estimated estate tax." (b) Time for Filing.

(1) Part V of subchapter A of chapter 61 is amended by adding at the end thereof the following new section:

"SEC. 6077. TIME FOR FILING DECLARATIONS OF ESTI

MATED TAX.

"Declarations of estimated estate tax required by section 6022 shall be filed within 7 months after the date of the decedent's death if the estate tax return required under section 6018 has not been filed prior to such date."

(2) The table of sections for part V of subchapter A of chapter 16 is amended by adding at the end thereof the following: "Sec. 6077. Time for filing declarations of estimated estate tax." (c) Payment of Estimated Estate Tax.

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(1) Subchapter A of chapter 62 (relating to time and place for paying tax) is amended by adding at the end thereof the following new section:

"SEC. 6158. PAYMENT OF ESTIMATED ESTATE TAX.

"(a) General Rule.-There shall be paid with the declaration of estimated estate tax required under section 6022, 80 percent of the estimated estate tax as computed under that section or the value of the net liquid assets, if less.

"(b) Liability for Payment. The payment required by subsection (a) shall be paid by the person required to file the declaration of estimated estate tax.

"(c) Net Liquid Assets. For purposes of this section, the term 'value of the net liquid assets' means an amount equal to― (1) the sum of the value of

"(A) all liquid assets included in the gross estate of the decedent which are not distributed, sold, exchanged, or otherwise disposed of within 6 months after the decedent's death, valued as of the date 6 months after the decedent's death,

"(B) all liquid assets included in the gross estate of the decedent which are distributed, sold, exchanged, or otherwise disposed of within 6 months after the decedent's death, valued as of the date of distribution, sale, exchange, or other disposition, and

"(C) all liquid assets received within 6 months after the decedent's death as proceeds from the distribution, sale, exchange or other disposition of assets (other than liquid assets) which were included in the gross estate of the decedent valued as of the date of distribution, sale, exchange, or other disposition, less

"(2) the sum of the value of

"(A) to the extent allowable as a deduction under section 2053, funeral and administration expenses, taxes and other claims against the estate which are paid as required by their terms within 7 months of the decedent's death or are reasonably expected to be paid as required by their terms within 15 months after the decedent's death, and

"(B) if a child (as defined in section 151(e)(3)) of the decedent, who has not attained the age of 21 at the time of the decedent's death, or the spouse of the decedent, survives him, an amount equal to $10,000 plus $5,000 for the surviving spouse, if any, and $5,000 for each surviving minor child. "(d) Liquid Assets. For purposes of this section, the term 'liquid assets' means

"(1) cash, including proceeds from insurance and amounts on deposit with any bank, savings and loan, or other financial institution which are collectible within 6 months after the decedent's death,

"(2) obligations and other securities and commodities which are readily redeemable or are readily tradeable in an established market, and

"(3) other securities, claims and obligations (such as promissory notes, certificates of deposit, and accounts receivable) which are redeemable or otherwise collectible by their terms at the option of the holder within 6 months after the decedent's death.

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"(e) Cross Reference. For provisions relating to extension of time for payment of the amount required to be paid with the declaration of estimated estate tax, see section 6161(a)(1).”

(2) The table of sections for subchapter A of chapter 62 is amended by adding at the end thereof the following:

"Sec. 6158. Payment of estimated estate tax."

(3) Section 6161 (a) (1) is amended by inserting after "not to exceed 6 months", "(8 months in the case of a declaration of estimated estate tax under section 6022)".

(d) Assessment. Subsection (b) of section 6201 (relating to assessment authority) is amended by adding at the end thereof the following new paragraph:

"(3) Estimated estate tax.-No unpaid amount of estimated estate tax under section 6158 shall be assessed."

(e) Payments on Account of Estate Tax.

(1) Subchapter B of chapter 64 (relating to receipt of payment) is amended by adding at the end thereof the following new section: "SEC. 6318. ESTIMATED ESTATE TAX PAYMENTS.

"Payment of the estimated estate tax required to be paid under section 6158 (a) or any portion thereof, shall be payment on account of the estate tax imposed by chapter 11."

(2) The table of sections for subchapter B of chapter 64 is amended by adding at the end thereof the following:

"Sec. 6318. Estimated estate tax payments."

(f) Failure to Pay.

(1) Interest.

(A) Subchapter A of chapter 67 (relating to interest on underpayments) is amended by adding at the end thereof the following new section:

"SEC. 6603. INTEREST ON UNDERPAYMENT OR NONPAYMENT OF ESTIMATED ESTATE TAX.

"(a General Rule.-If there is an underpayment of the estimated estate tax required to be paid under section 6158(a), as computed under section 6660 (e) and (f), interest on such amount at the rate of 6 percent per annum shall be paid for the period from the last date prescribed for payment (determined without regard to any extension of time for payment) of such tax to the earlier of—

"(1) the date paid, or

"(2) the date prescribed under section 6075 for filing the estate

tax return.

"(b) Applicable Rules.

"(1) Interest treated as tax.-Interest prescribed under this section on the estimated estate tax payment shall be paid upon notice and demand, and shall be assessed, collected, and paid in the same manner as the estate tax.

"(2) No interest on interest.-No interest under this section shall be imposed on the interest provided by this section.

"(3) Interest part of estate tax.-The interest imposed under subsection (a) shall be considered interest on the estate tax imposed under chapter 11 and shall not be considered part of the portion of the estimated estate tax required to be paid under section 6158(a).”

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(B) The table of sections for subchapter A of chapter 67 is amended by adding at the end thereof the following: "Sec. 6603. Interest on underpayment or nonpayment of estimated estate tax."

(2) Section 6601.-Section 6601 (relating to interest on underpayment, nonpayment, or extensions of time for payment, of tax) is amended by adding at the end thereof the following new subsection:

"(m) Exception as to Estimated Estate Tax.-This section shall not apply to any failure to pay estimated estate tax required by section 6158."

(3) Failure to pay or to file.

(A) Subchapter A of chapter 68 (relating to additions to the tax, additional amounts, and assessable penalties) is amended by adding at the end thereof the following new section:

"SEC. 6660. FAILURE TO PAY ESTIMATED ESTATE TAX OR TO FILE DECLARATION.

"(a) Addition to the Tax.-In the case of failure

"(1) to file the declaration of estimated estate tax required by section 6022, on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the estate tax 5 percent of the underpayment if the failure is for not more than 1 month, with an additiontal 5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate; or

"(2) to pay the amount required by section 6158 (a) on or before the date prescribed for payment thereof (determined with regard to any extension of time for payment), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the estate tax 0.5 percent of the underpayment if the failure is for not more than 1 month, with an additional 0.5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate.

"(b) Additions Under More Than One Paragraph.-With respect to any declaration, the amount of the addition under paragraph (1) of subsection (a) shall be reduced by the amount of the addition under subparagraph (2) of subsection (a) for any period to which an addition to tax applies under both paragraphs (1) and (2).

"(c) Negligence or Intentional Disregard of Rules and Regulations. If any part of any underpayment (as defined in subsection (e) (1)) of the amount required to be paid under section 6158 (a) is due to negligence or intentional disregard of rules and regulations (but without intent to defraud), there shall be added to the estate tax an amount equal to 5 percent of the underpayment.

"(d) Fraud.-If any part of any underpayment (as defined in subsection (e)) of the amount required to be paid under section 6158(a) is due to fraud, there shall be added to the estate tax an amount equal to 50 percent of the underpayment.

"(e) Amount of Underpayment.