Page:United States Statutes at Large Volume 103 Part 3.djvu/350

 103 STAT. 2418 PUBLIC LAW 101-239—DEC. 19, 1989 Gifts and property. 26 USC 2056 note. Gifts and property. graph dXA) shall be treated as a transfer by gift, and any tax paid under paragraph (I)(A) shall be treatedf as a gift tax." (10) Paragraph (2) of section 2056A(c) is amended by striking "liie term ' and inserting "Except as provided in r^^ations, the term". (11) Qause (ii) of section 2056A(b)(2)(B) is amended by striking "as a credit or refund" and inserting "as a credit or renmd (with interest)". (12) Paragraph (2) of section 2056A(b) is amended by adding at the end the following new subparagraph: "(C) SPECIAL RULE WHERE DECEDENT HAS MORE THAN i QUALIFIED DOMESTIC TRUST.— If there is more than 1 quali- fied domestic trust with respect to any decedent, the amount of the tax imposed by paragraph (1) with respect to such trusts shall be determined by using the highest rate of tax in effect under section 2001 as of the date of the decedent's death (and the provisions of paragraph (3)(B) shall not apply) unless, pursuant to a designation made by the decedent's executor, there is 1 person— "(i) who is an individual citizen of the United States or a domestic corporation and is responsible for filing all returns of tax imposed under paragraph (1) with respect to such trusts and for paying all tax so imposed, and "(ii) who meets such requirements as the Secretary may by regulations prescribe." (13) Section 2056A is amended by adding at the end the following new subsection: "(e) REGULATIONS. —The Secretary shall prescribe such regula- tions as may be necessary or appropriate to carry out the purposes of this section, including regulations under wmch there may be treated as a qualified domestic trust any annuity or other payment which is includible in the decedent's gross estate and is by its terms payable for life or a term of years." (14) In the case of the estate of, or gift by, an individual who was not a citizen or resident of the United States but was a resident of a foreign country with which the United States has a tax treaty with respect to estate, inheritance, or gift taxes, the amendments made by section 5033 of the 1988 Act shall not apply to the extent such amendments would be inconsistent with the provisions of such treaty relating to estate, inherit- ance, or gift tax marital deductions. In the case of the estate of an individual dying before the date 3 years after the date of the enactment of this Act, or a gift by an individual before the date 3 years after the date of the enactment of this Act, the require- ment of the preceding sentence that the individual not be a citizen or resident of the United States shall not apply. (15) Para^aph (5) of section 2056A(b) (as redesignated by {>aragraph (7)(B) of this subsection) is amended to read as fol- ows: "(5) DUE DATE.— "(A) TAX ON DISTRIBUTIONS.— The estate tax imposed by paragraph (I)(A) shall be due and payable on the 15th day of the 4th month following the calendar year in which the taxable event occurs; except that the estate tax imposed by paragraph (I)(A) on distributions during the calendar year m which the surviving spouse dies shall be due and payable

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