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"(1) In general.-Except as provided in paragraph (2) of this subsection, the amount of the underpayment shall be the excess of

"(A) the amount of estimated estate tax required to be paid under section 6158, over

"(B) the amount, if any, of such estimated estate tax paid on or prior to the date prescribed under section 6077 for filing the declaration of estimated estate tax required under section 6022.

"(2) Exception.-There shall not be considered to be an underpayment of the estimated estate tax for purposes of this section

"(A) if the amount paid under section 6158(a) on or before the date prescribed under section 6077 for filing the declaration of estimated estate tax equals or exceeds 80 percent of the estate tax determined by the executor as the tax imposed under chapter 11, or

"(B) if the only reason for the underpayment is because there is discovered, after the date prescribed for filing the declaration of estimated estate tax, property includable in the gross estate of the decedent, which was not known by the executor to be part of the gross estate of the decedent, despite reasonable search by him, until after such date; or

"(C) if the amount of estimated estate tax paid on or before the date prescribed under section 6077 for filing the declaration of estimated estate tax equals or exceeds 80 percent of

"(i) the estate tax determined by the executor as the tax imposed by chapter 11, reduced by

"(ii) the amount of estate tax, the date for payment of which is postponed under the provisions of section 6161, 6163, or 6166.

"(f) Period of Underpayment.-The period of underpayment shall run from the date the declaration of estimated estate tax was required to be filed to whichever of the following dates is the earlier

"(1) The date by which the estate tax return under section 6018 is required to be filed,

"(2) With respect to any portion of the underpayment, the date on which such portion is paid, or

"(3) The date on which is paid an amount which, had it been paid on the date prescribed in section 6077, would have qualified for the exception under subsection (e) (2) (B).

For purposes of this section, payments of the estate tax imposed by chapter 11 shall be considered to be payments of the estimated tax required to be paid under section 6158.

(g) No Delinquency Penalty If Fraud Assessed.-If any penalty is assessed under subsection (d) (relating to fraud) for an underpayment of estimated estate tax, no penalty under subsection (a) shall be assessed with respect to the same underpayment.

"(h) Additions Not on Account.-Any amount imposed by this section shall not be on account of the estate tax imposed by chapter

11."

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(4) Section 6651.-Section 6651 (relating to failure to file tax return or to pay tax) is amended by adding at the end thereof the following new subsection:

"(e) Exception as to Estimated Estate Tax.-This section shall not apply to any failure to pay, or make a declaration of, estimated estate tax required by section 6158 or section 6022."

(g) Adjustment of Estimated Estate Tax.

(1) Subchapter B of chapter 65 (relating to rules of special application) is amended by adding at the end thereof the following new section:

"SEC. 6426. ADJUSTMENT OF ESTIMATED ESTATE TAX. "(a) Application for Adjustment.-The executor of an estate may file an application for an adjustment of the estimated estate tax because of a lower amount of estate tax shown as due on the estate tax return than the amount of estimated estate tax actually paid. The application shall be verified in the manner prescribed by section 6065 in the case of a return by such executor, and shall be filed, on or after the filing of the estate tax return and within a period of 12 months from such date, in the manner and form required by regulations prescribed by the Secretary or his delegate. The application shall set forth

"(1) the amount of estimated estate tax paid,

"(2) the amount of estate tax shown as due on the return, "(3) the amount of the adjustment, and

"(4) such other information for purposes of carrying out the provisions of this section as may be required by such regulations. "(b) Allowances of Adjustments. Within a period of 90 days from the date on which an application for an adjustment of the estimated estate tax is filed under subsection (a), the Secretary or his delegate shall make, to the extent he deems practicable in such period, a limited examination of the applications, declarations, and returns, to discover omissions and errors of computation therein, and shall determine the amount of the excess of the estimated estate tax paid over the estate tax shown as due on the estate tax return, except that the Secretary or his delegate may disallow, without further action, any application which he finds refers to returns or declarations which contain errors of computation which he deems cannot be corrected by him within such 90-day period or material omissions. Such excess shall, within the 90-day period, be refunded to the executor.

"(c) Amount Shown as Due. For purposes of this section, the term 'amount of estate tax shown as due' means the amount of tax which would be due with the estate tax return after operation of sections 6161, 6163 and 6166.

"(d) Interest on Overpayment.

"(1) Rate.-Interest shall be allowed and paid upon any amount refunded under this section at the rate of 6 percent per

annum.

"(2) Period. Such interest shall be allowed and paid from the date prescribed for filing the declaration of estimated estate tax, or from the date the overpayment was made, if later, to a date (to be determined by the Secretary or his delegate) preceding the date of the check for the refund under this section by not more than 30 days, whether or not such refund check is accepted by the executor after tender of such check to the executor."

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(2) The table of sections for subchapter B of chapter 65 (relating to rules of special application) is amended by adding at the end thereof the following:

"Sec. 6424. Adjustment of estimated estate tax."

(h) Holding Period of Property.-Section 1223 (relating to holding period of property) is amended by redesignating paragraph (11) as paragraph (12) and inserting after paragraph (10) the following:

"(11) In the case of a person acquiring property from a decedent or to whom property passed from a decedent (within the meaning of section 1014(b)) if—

"(A) such property was included in such decedent's gross estate,

"(B) the basis of such property in the hands of such person is determined under section 1014, and

"(C) such property is sold or exchanged by such person within 6 months after the decedent's death,

such person shall be considered to have held such property for more than 6 months."

(i) Effective Date.-The amendments made by this section shall apply with respect to estates of decedents dying on or after the date of enactment of this section. These amendments shall also apply in the case of decedents dying after March 31, 1970, and on or before the date of enactment of this section, except that the reference in section 6077 to "7 months after the date of the decedent's death" shall be deemed to mean 7 months after the enactment of this section.

A BILL To amend the Internal Revenue Code of 1954 by imposing a tax upon the sale of lead additives used in the manufacture or production of gasoline, providing for payments to producers of gasoline for lead additives used during a transitional period, and for other purposes.

Be it enacted by the Senate and the House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE, ETC.

(a) Short Title. This Act may be cited as the "Clean Air Tax Act of 1970".

(b) Amendment of 1954 Code.-Except as otherwise express'y provided, whenever in this Act an amendment is expressed in terms of an amendment to a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1954.

SEC. 2. TAX ON SALE OF LEAD ADDITIVES.

(a) Imposition of Tax.-Chapter 39 (relating to regulatory taxes) is amended by adding at the end thereof the following new subchapter:

"Subchapter F-Lead Additives

"Sec. 4891. Lead Additives

"SEC. 4891. LEAD ADDITIVES.

"(a) Imposition of Tax.-There is hereby imposed upon the sale of lead additives by the manufacturer, producer, or importer thereof a tax of $4.25 per pound of the total lead therein.

"(b) Imported Gasoline. In addition to any other tax or duty imposed by law, there is hereby imposed upon the importation of gasoline containing lead additives a tax of $4.25 per pound of the total lead therein.

"(c) Floor Stocks Tax.

"(1) Imposition of Tax.-On lead additives subject to tax under subsection (a), which, on August 1, 1970, are held by any person other than the manufacturer, producer, or importer thereof, there is hereby imposed a floor stocks tax at the rate of $4.25 per pound of the total lead therein. The tax imposed by this subsection shall not apply to the lead content of gasoline stocks on August 1, 1970, whether finished or in process.

"(2) Due Date of Floor Stocks Taxes.-The tax imposed by this. subsection shall be paid at such time after September 30, 1970, as may be prescribed by the Secretary or his delegate.

"(d) Use by Manufacturer, Producer, or Importer Considered Sale. If any person manufactures, produces, or imports a leed additive. and uses it, then he shall be liable for tax under this section in the same manner as if such additive were sold by him.

"(e) Import Tax Imposed as Tariff Duty.-The tax imposed by subsection (b) shall be levied, assessed, collected, and paid in the