26 U.S.C. § 7477 — Declaratory judgments relating to value of certain gifts
submitted 29 years ago by Pub. L. 105-34 to r/title-26-INTERNAL-REVENUE-CODE · 191 words · no verdicts yet
The Tax Court can rule on the value of a gift when the IRS and the donor disagree about it. Only the donor who made the gift can bring this kind of case. The donor must first exhaust IRS appeals and file within 91 days of the IRS's decision.
(a) Creation of remedy: If there is a real dispute over how the IRS values a gift shown on - or attached to - a gift tax return under chapter 12, the Tax Court* can declare the gift's value once the right paperwork is filed. That declaration works like, and can be reviewed like, a regular Tax Court decision.
(b) Limitations:
(1) Petitioner: only the donor can file this kind of case.
(2) Exhaustion of administrative remedies: the Tax Court cannot issue this kind of judgment unless the donor has used up all available IRS appeal options.
(3) Time for bringing action: if the IRS mails its valuation decision to the donor by certified or registered mail, the case must be filed before the 91st day after that mailing.
In a case of an actual controversy involving a determination by the Secretary* of the value of any gift shown on the return of tax imposed by chapter 12 or disclosed on such return or in any statement attached to such return, upon the filing of an appropriate pleading, the Tax Court* may make a declaration of the value of such gift. Any such declaration shall have the force and effect of a decision of the Tax Court and shall be reviewable as such.
A pleading may be filed under this section only by the donor.
The court shall not issue a declaratory judgment or decree under this section in any proceeding unless it determines that the petitioner has exhausted all available administrative remedies within the Internal Revenue Service.
If the Secretary sends by certified or registered mail notice of his determination as described in subsection (a) to the petitioner, no proceeding may be initiated under this section unless the pleading is filed before the 91st day after the date of such mailing.
Source credit: (Added Pub. L. 105–34, title V, § 506(c)(1), Aug. 5, 1997, 111 Stat. 855.)
- 1997Enacted · Pub. L. 105-34 · 111 Stat. 855
A history note hasn’t been published yet. The record shows enactment by Pub. L. 105-34 on 1997-08-05.
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