Page:United States Statutes at Large Volume 56 Part 1.djvu/978

 PUBLIC LAWS-CH. 619-OCT. 21, 1942 53 Stat. 130. 26U.S.C.§861(a) (3). Ante, pp. 943, 949. 53 Stat. 125 . 26U.S.0. 813(a) (1). Infra. 53 Stat. 125. 26U.S.C., upp. I, § 813 (a) (2) (A). Supra; infra. 53 Stat. 125. 26U. S. C., Supp.I, 813 (b). 53 Stat. 125. 26U.S.C.j813(a) (1); Supp. I, 813 (a) (2). Supra. 53 Stat. 128. 26U.S. C. 827(b). 63 Stat. 120 -122. 26U. S .C. §811 b), (C), (d), (e). Ante, pp. 941, 942, 944. 53 Stat. 128. 26 U. S. C. §827 (a). 53 Stat. 138. 26U.S.C. 900(e). Supra period at the end of the first sentence the following: ", and no sub- stantial part of the activities of such trustee or trustees, or of such fraternal society, order, or association, is carrying on propaganda, or otherwise attempting, to influence legislation". (b) NONRESIDENTS NOT CITIZENs.- Section 861 (a) (3) (relating to deduction for bequests, etc., to charity) is amended by inserting before the period at the end of the first sentence the following: ", and no substantial part of the activities of such trustee or trustees, or of such fraternal society, order, or association, is carrying on propa- ganda, or otherwise attempting, to influence legislation". SEC. 410. PRIORITY OF CREDIT FOR LOCAL DEATH TAXES. (a) AMENDMENT TO CREDIT FOR 1924 GIFT TAx.- Section 813 (a) (1) (relating to credit for estate tax of gift tax paid under 1924 Act) is amended by inserting after "subchapter" where it occurs the second time the following: "(after deducting from such tax the credit pro- vided by section 813 (b))". (b) AMENDMENT TO CREDIT FOR 1932 AND CHAPTER 4 GIFT TAX. - Section 813 (a) (2) (A) (relating to credit for estate tax of gift tax paid under 1932 Act or Chapter 4) is amended by inserting after "860" where it occurs the second time the following: "(after deducting from such tax the credits provided by section 813 (a) (1) and (b))". (c) 80 PER CENTUM LIMrr ON LOCAL DEATH TAX COMPuTEo BEFORE ALLOWANCE or GIFT TAX CEDITr.- Section 813 (b) (relating to credit for local estate, succession, legacy, and inheritance taxes) is amended by striking out "(after deducting from such tax the credits provided by section 813 (a) (2))" and inserting in lieu thereof "(before de- ducting from such tax the credits provided by section 813 (a) (1) and (2))". SEC. 411. LIABILITY OF CERTAIN TRANSFEREES. (a) IMPOSITION OF LIABILITY. -Section 827 (b) is amended to read as follows: "(b) LIABILITr OF TRANsFEREE, EC. --I f the tax herein imposed is not paid when due, then the spouse, transferee, trustee, surviving tenant, person in possession of the property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, who receives, or has on the date of the decedent's death, property included in the gross estate under section 811 (b), (c), (d), (e) (f), or (g), to the extent of the value, at the time of the decedent's death, of such property, shall be personally liable for such tax. Any part of such property sold by such spouse, transferee, trustee, surviving tenant, person in possession of property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, to a bona fide purchaser for an adequate and full consideration in money or money's worth shall be divested of the lien provided in section 827 (a) and a like lien shall then attach to all the property of such spouse, transferee, trustee, surviving tenant, person in possession, or beneficiary, except any part sold to a bona fide purchaser for an adequate and full consideration in money or money's worth." (b) DEFINMION OF TRANSFEREE. - Section 900 (e) is amended to read as follows: "(e) DEFINmwON OF 'TRANsFEREE'. - As used in this section, the term transferee' includes heir, legatee, devisee, and distributee, and includes a person who, under section 827 (b), is personally liable for any part of the tax." [56 STAT.

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