Page:United States Statutes at Large Volume 72 Part 1.djvu/1716

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PUBLIC LAW 86-866-SEPT. 2, 1968

[72 S T A T.

section 7122 of the Internal Revenue Code of 1954, relating to comromises), refund or credit of such overpayment may, nevertheless, e made or allowed if claim therefor is filed within one year after the date of enactment of this Act. SEC. 101. DEFINITION OF EARNINGS AND PROFITS IN THE CASE OF REGULATED INVESTMENT COMPANIES. ^^^ AMENDMENT or SECTION 852 (a).—Section 852(a) (relating to requirements applicable to regulated investment companies) is amended by striking out "this subchapter" and inserting in lieu thereof "this subchapter (other than subsection (c) of this section)". (b) AMENDMENT OF SECTION 852 (c).—Section 852(c) (relating to definition of earnings and profits in the case of regulated investment companies) is amended by adding at the end thereof the following new sentence: "For purposes of this subsection, the term 'regulated investment company' includes a domestic corporation which is a regulated investment company determined without regard to the requirements of subsection (a). " (c) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to taxable years of regulated investment companies beginning on or after March 1, 1958. SEC. 102. APPLICATION OF ESTATE AND GIFT TAXES IN POSSESSIONS. (a) ESTATE TAX.—Subchapter,C of chapter 11 (relating to miscellaneous estate tax provisions) is amended by adding at the end thereof the following new section: "SEC. 2208. CERTAIN RESIDENTS OF POSSESSIONS CONSIDERED CITIZENS OF THE UNITED STATES. "A decedent who was a citizen of the United States and a resident of a possession thereof at the time of his death shall, for purposes of the tax imposed by this chapter, be considered a 'citizen' of the United States witnin the meaning of that term wherever used in this title unless he acquired his United States citizenship solely by reason of (1) his being a citizen of such possession of the United States, or (2) his birth or residence within such possession of the United States." ^J3^ GiFT TAX.—Section 2501 (relating to imposition of gift tax) is amended by redesignating subsection (b) to be subsection (c) and by adding after subsection (a) the following new subsection:

E

26 USC 852.

26 USC 2501.

"(b) CERTAIN RESIDENTS OF POSSESSIONS CONSIDERED CITIZENS OF THE UNITED STATES.—A donor who is a citizen of the United States

and a resident of a possession thereof shall, for purposes of the tax imposed by this chapter, be considered a 'citizen' of the United States within the meaning of that term wherever used in this title unless he acquired his United States citizenship solely by reason of (1) his being a citizen of such possession of the United States, or (2) his birth or residence within such possession of the United States." (c)

26 USC 2011. 26 USC 2014.

RELATED AMENDMENTS.—

(1) Section 2011(a) (relating to the credit for estate, inheritance, legacy, or succession taxes) is amended by striking out "or any possession of the United States,". (2) Section 2014 (relating to credit for foreign death taxes) is amended by adding at the end thereof the following new subsection: "(f)

POSSESSION OF UNITED STATES DEEMED A FOREIGN COUNTRY.—

For purposes of the credits authorized by this section, each possession of the United States shall be deemed to be a foreign country."

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