Page:United States Statutes at Large Volume 100 Part 3.djvu/706

 100 STAT. 2514

PUBLIC LAW 99-514—OCT. 22, 1986

ing from the value of the gross estate an amount equal to 50 percent of the qualified proceeds of a qualified sale of employer securities. "(b) QUALIFIED SALE.—For purposes of this section, the term 'qualified sale' means any sale of employer securities by the executor of an estate to— "(1) an employee stock ownership plan is described in section 4975(e)(7), or "(2) an eligible worker-owned cooperative (within the meaning of section 1042(c)). "(c) QUALIFIED PROCEEDS.—For purposes of this section— "(1) IN GENERAL.—The term 'qualified proceeds' means the amount received by the estate from the sale of employer securities at any time before the date on which the return of the tax imposed by section 2001 is required to be filed (including any extensions). "(2) PROCEEDS FROM CERTAIN SECURITIES NOT QUALIFIED.—The

term 'qualified proceeds' shall not include the proceeds from the sale of any employer securities if such securities were received by the decedent— "(A) in a distribution from a plan exempt from tax under ^.41 section 501(a) which meets the requirements of section 401(a), or "(B) as a transfer pursuant to an option or other right to acquire stock to which section 83, 422, 422A, 423, or 424 applies. "(d) WRITTEN STATEMENT REQUIRED.—

"(1) IN GENERAL.—No deduction shall be allowed under subsection (a) unless the executor of the estate of the decedent files with the Secretary the statement described in paragraph (2). "(2) STATEMENT.—A statement is described in this paragraph if it is a verified written statement of— "(A) the employer whose employees are covered by the ,; plan described in subsection (b)(1), or "(B) any authorized officer of the cooperative described in subsection (b)(2), consenting to the application of section 4979A with respect to such employer or cooperative. "(e) EMPLOYER SECURITIES.—For purposes of this section, the term 'employer securities' has the meaning given such term by section 409(1). "(f) TERMINATION.—This section shall not apply to any sale after December 31, 1991." (b) CONFORMING AMENDMENTS.—

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(1) Section 409(n)(l) is amended— (A) by inserting "or section 2057" after "section 1042", (B) by inserting "or any decedent if the executor of the estate of such decedent makes a qualified sale to which section 2057 applies," after "securities" in subparagraph (A)(i) thereof, and (C) by inserting "or the decedent" after "taxpayer" in subparagraph iA)iii) thereof (2) Section 4979A is amended— (A) by inserting "or section 2057" after "section 1042" in subsection (b)(l) thereof, and (B) Hjy inserting "or section 2057(d)" after "section 1042(b)(8)(B)" in subsection (c) thereof.

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