Page:United States Statutes at Large Volume 111 Part 1.djvu/880

 Ill STAT. 856 PUBLIC LAW 105-34—AUG. 5, 1997 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. "(b) LIMITATIONS.— "(1) PETITIONER. —^A pleading may be filed under this section only by the donor. "(2) EXHAUSTION OF ADMINISTRATIVE REMEDIES. —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. "(3) TIME FOR BRINGING ACTION. — 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.". (2) CLERICAL AMENDMENT.—The table of sections for such part IV is amended by inserting after the item relating to section 7476 the following new item: "Sec. 7477. Declaratory judgments relating to value of certain gifts.". (d) CONFORMING AMENDMENT.— Subsection (c) of section 2504 is amended by striking ", and if a tax under this chapter or under corresponding provisions of prior laws has been assessed or paid for such preceding calendar period". (e) EFFECTIVE DATES. — 26 USC 2001 (1) IN GENERAL.— The amendments made by subsections note. (a) and (c) shall apply to gifts made after the date of the enactment of this Act. 26 USC 6501 (2) SUBSECTION (b)—The amendment made by subsection note. (b) shall apply to gifts made in calendar years ending after the date of the enactment of this Act. SEC. 507. REPEAL OF THROWBACK RULES APPLICABLE TO CERTAIN DOMESTIC TRUSTS. (a) ACCUMULATION DISTRIBUTIONS. — (1) IN GENERAL.— Section 665 is amended by inserting after subsection (b) the:^ollowing new subsection: "(c) EXCEPTION FOR ACCUMULATION DISTRIBUTIONS FROM CER- TAIN DOMESTIC TRUSTS.— For purposes of this subpart— "(1) IN GENERAL.—In the case of a qualified trust, any distribution in any taxable year beginning after the date of the enactment of this subsection shall be computed without regard to any undistributed net income. "(2) QUALIFIED TRUST.— For purposes of this subsection, the term 'qualified trust' means any trust other than— "(A) a foreign trust (or, except as provided in regulations, a domestic trust which at any time was a foreign trust), or "(B) a trust created before March 1, 1984, unless it is established that the trust would not be aggregated with other trusts under section 643(f) if such section applied to such trust.". (2) CONFORMING AMENDMENTS.— Subsection (b) of section 665 is amended by inserting "except as provided in subsection (c)," after "subpart,". (b) REPEAL OF TAX ON TRANSFERS TO TRUSTS AT LESS THAN FAIR MARKET VALUE.—

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