26 U.S.C. § 6018 — Estate tax returns

submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 279 words · no verdicts yet

in plain englishAI-generated · not legal advice

An estate's executor must file a federal estate tax return if the estate exceeds set dollar thresholds. Citizens and residents use the "basic exclusion amount"; nonresident non-citizens use a $60,000 threshold for U.S. assets. Both thresholds shrink by the decedent's earlier taxable gifts.

(a) An estate's executor must file an estate tax return in certain cases. For a citizen or resident who dies, a return is required if the gross estate exceeds the "basic exclusion amount." That amount is set under section 2010(c) for the year of death. For a nonresident who is not a United States citizen, a return is required in a similar way. It applies if the part of the gross estate located in the United States is worth more than $60,000. Both of these thresholds must be reduced, but never below zero. Two amounts are subtracted. The first is the "adjusted taxable gifts" the decedent made after December 31, 1976. The second is any specific gift-tax exemption the decedent used under the former section 2521, for gifts made after September 8, 1976. (b) If the executor cannot fully report part of the gross estate, the return must still describe that part. It must also name everyone who holds a legal or beneficial interest in it. The Secretary can then require that person to file their own return covering that part of the estate.

facts

- Codified at 26 U.S.C. § 6018, titled "Estate tax returns," located in the Internal Revenue Code. - Originally enacted August 16, 1954, by ch. 736, 68A Stat. 739. - The statute text spans 279 words, addressing returns by executors and beneficiaries. - Source credit lists 10 amendments, ranging from 1966 (Pub. L. 89–809) through 2010 (Pub. L. 111–312).

the actual law source: uscode.house.gov ↗public domain

(a) Returns by executor

(1) Citizens or residents

In all cases where the gross estate at the death of a citizen or resident exceeds the basic exclusion amount in effect under section 2010(c) for the calendar year which includes the date of death, the executor shall make a return with respect to the estate tax imposed by subtitle B.

(2) Nonresidents not citizens of the United States

In the case of the estate of every nonresident not a citizen of the United States if that part of the gross estate which is situated in the United States exceeds $60,000, the executor shall make a return with respect to the estate tax imposed by subtitle B.

(3) Adjustment for certain gifts

The amount applicable under paragraph (1) and the amount set forth in paragraph (2) shall each be reduced (but not below zero) by the sum of—

(A)

the amount of the adjusted taxable gifts (within the meaning of section 2001(b)) made by the decedent after December 31, 1976, plus

(B)

the aggregate amount allowed as a specific exemption under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) with respect to gifts made by the decedent after September 8, 1976.

(b) 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. Upon notice from the Secretary such person shall in like manner make a return as to such part of the gross estate.

Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 739; Pub. L. 89–809, title I, § 108(g), Nov. 13, 1966, 80 Stat. 1574; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), title XX, § 2001(c)(1)(J), Oct. 4, 1976, 90 Stat. 1834, 1852; Pub. L. 97–34, title IV, § 401(a)(2)(B), Aug. 13, 1981, 95 Stat. 299; Pub. L. 98–369, div. A, title V, § 544(b)(3), July 18, 1984, 98 Stat. 894; Pub. L. 100–647, title I, § 1011A(g)(12), Nov. 10, 1988, 102 Stat. 3482; Pub. L. 101–239, title VII, § 7304(b)(2)(B), Dec. 19, 1989, 103 Stat. 2353; Pub. L. 101–508, title XI, § 11801(a)(43), (c)(19)(C), Nov. 5, 1990, 104 Stat. 1388–521, 1388–528; Pub. L. 105–34, title V, § 501(a)(1)(C), title X, § 1073(b)(4), Aug. 5, 1997, 111 Stat. 845, 948; Pub. L. 107–16, title V, § 542(b)(1), June 7, 2001, 115 Stat. 81; Pub. L. 111–312, title III, §§ 301(a), 303(b)(3), Dec. 17, 2010, 124 Stat. 3300, 3303.)

history & why it existsrecord from the source credit

1954Enacted · Act of Aug. 16, 1954, ch. 736
1966Amended · Pub. L. 89-809 · 80 Stat. 1574
1976Amended · Pub. L. 94-455 · 90 Stat. 1834, 1852
1981Amended · Pub. L. 97-34 · 95 Stat. 299
1984Amended · Pub. L. 98-369 · 98 Stat. 894
1988Amended · Pub. L. 100-647 · 102 Stat. 3482
1989Amended · Pub. L. 101-239 · 103 Stat. 2353
1990Amended · Pub. L. 101-508 · 104 Stat. 1388
1997Amended · Pub. L. 105-34 · 111 Stat. 845, 948
2001Amended · Pub. L. 107-16 · 115 Stat. 81
2010Amended · Pub. L. 111-312 · 124 Stat. 3300, 3303

The record. The source credit indicates that this section was originally enacted as part of the Internal Revenue Code of 1954, chapter 736, on August 16, 1954. It has since been amended at least ten times, beginning with Public Law 89–809 in 1966 and continuing through Public Law 111–312 in 2010, with intervening changes made by major tax acts in 1976, 1981, 1984, 1988, 1989, 1990, 1997, and 2001. This pattern of repeated amendment reflects the section's ongoing adjustment to accompany changes in the estate tax exclusion amount and related provisions found elsewhere in the Internal Revenue Code. Historical context. The Internal Revenue Code of 1954 is generally understood as a comprehensive recodification and reorganization of federal tax law, consolidating and restating provisions that had developed piecemeal since earlier revenue acts, including those governing the federal estate tax. Provisions requiring executors to file returns when an estate's value exceeds a specified threshold are commonly understood to serve the basic administrative purpose of identifying which estates are subject to tax and ensuring compliance with reporting obligations tied to the exclusion amount set elsewhere in the Code. Beyond this general understanding, the record does not establish the specific legislative reasoning behind the section's particular thresholds, the nonresident-alien provision, or the beneficiary-return requirement in subsection (b). No committee reports or floor statements are reflected in the source credit, and speculation about specific intent would not be warranted.

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