Page:United States Statutes at Large Volume 102 Part 4.djvu/755

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3725

(1) IN GENERAL.—The amendment made by subsection (a) shall apply with respect to rentals occurring after December 31, 1976. (2) WAIVER OF STATUTE OF LIMITATIONS.—If on the date of the enactment of this Act (or at any time within 1 year after such date of enactment) refund or credit of any overpayment of tax resulting from the application of the amendment made by subsection (a) is barred by any law or rule of law, refund or credit of such overpa5niient shall, nevertheless, be made or allowed if claim therefore is filed before the date 1 year after the date of the enactment of this Act. SEC. 6152. CLARIFICATION OF TREATMENT OF JOINT AND SURVIVOR ANNUITIES UNDER QTIP RULES.

(a) ESTATE TAX.—Paragraph (7) of section 2056(b) of the 1986 Ckxie is amended by adding at the end thereof the following new subparagraph: "(C) TREATMENT OF SURVIVOR ANNUITIES.—In the case of an annuity where only the surviving spouse has the right to receive payments before the death of such surviving spouse— "(i) the interest of such surviving spouse shall be treated as a qualifying income interest for life, and "(ii) the executor shall be treated as having made an election under this subsection with respect to such annuity unless the executor otherwise elects on the return of tax imposed by section 2001. An election under clause (ii), once made, shall be irrevocable " (b) GIFT TAX.—Subsection (f) of section 2523 of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(6) TREATMENT OF JOINT AND SURVIVOR ANNUITIES.—In

the

case of a joint and survivor annuity where only the donor spouse and donee spouse have the right to receive payments before the death of the last spouse to die— "(A) the donee spouse's interest shall be treated as a qualifying income interest for life, "(B) the donor spouse shall be treated as having made an election under this subsection with respect to such suinuity unless the donor spouse otherwise elects on or before the date specified in paragraph (4)(A), "(C) paragraph (5) and section 2519 shall not apply to the donor spouse's interest in the annuity, and "(D) if the donee spouse dies before the donor spouse, no amount shall be includible in the gross estate of the donee spouse under section 2044 with respect to such £mnuity. An election under subparagraph (B), once made, shall be irrevocable." (c) EFFECTIVE DATES.— (1) IN GENERAL.—Except as otherwise provided in this subsection— (A) the amendment made by subsection (a) shall apply with respect to decedents dying after December 31, 1981, and (B) the amendment made by subsection (b) shall apply to transfers after December 31, 1981.

26 USC 2056 note.

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