Page:United States Statutes at Large Volume 92 Part 3.djvu/305

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2937

"(A) IN GENERAL.—The partial tax shall be reduced by a n amount which is equal to the pre-death portion of the partial tax multiplied by a fraction— "(i) the numerator of which is that portion of the tax imposed by chapter 11 or 13, as the case may be, which is 26 USC 2001 et attributable (on a proportionate basis) to amounts ^^9' 2601 et seq. included in the acciimulation distribution, and "(ii) the denominator of which is the amount of the accumulation distribution which is subject to the tax imposed by chapter 11 or 13, as the case may be. "(B) PARTIAL TAX DETERMINED WITHOUT REGARD TO THIS

PARAGRAPH.—For purposes of this paragraph, the term 'partial tax' means the partial tax imposed by subsection (a)(2) determined under this subsection without regard to this paragraph. "(C) PRE-DEATH PORTION.—For purposes of this paragraph,

the pre-death portion of the partial tax shall be a n amount which bears the same ratio to the partial tax as the portion of the accumulation distribution which is attributable to the period before the date of the death of the decedent or the date of the generation-skipping transfer bears to the total accumulation distribution." (2) EFFECTIVE DATE.—The amendment m a d e by paragraph (1)

26 USC 667 note. 26 USC 2001 ef. seq.

shall apply— (A) in the case of the tax imposed by chapter 11 of the Internal Revenue Code of 1954, to the estates of decedents dying after December 31, 1979, and (B) in the case of the tax imposed by chapter 13, to any 26 USC 2601 et generation-skipping transfer (within the meaning of section seq. 2611(a) of such Code) made after June 11, 1976. (p) RELIEF OF EXECUTOR F R O M PERSONAL LIABILITY IN THE CASE OF RELIANCE ON G I F T T A X RETURNS.—

(1) IN GENERAL.—Section 2204 (relating to discharge of fidu- 26 USC 2204. ciary from personal liability) is amended by adding a t the end thereof the following new subsection: "(d) GOOD FAITH RELIANCE ON G I F T TAX RETURNS.—If the executor

in good faith relies on gift tax returns furnished under section 6103(e)(3) for determining the decedent's adjusted taxable gifts, the 26 USC 6103. executor shall be discharged from personal liability with respect to any deficiency of the tax imposed by this chapter which is attributable to adjusted taxable gifts which— "(1) a r e made more than 3 years before the date of the decedent's death, and "(2) are not shown on such returns.". (2) EFFECTIVE DATE.—The amendment made by paragraph (1) 26 USC 2204 shall apply with respect to the estates of decedents dying after "ot^. December 31, 1976. (q) INDEXING OF FEDERAL T A X L I E N S. —

(1) IN GENERAL.—Paragraph (4) of section 6323(f) (relating to 26 USC 6323. indexing of tax liens) is amended to read as follows: "(4) INDEXING REQUIRED WITH

RESPECT TO CERTAIN REAL

PROPERTY.—In the case of real property, if— "(A) under the laws of the State in which the real property is located, a deed is not valid as against a purchaser of the property who (at the time of purchase) does not have actual notice or knowledge of the existence of such deed unless the fact of filing of such deed has been entered and recorded in a

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