Page:United States Statutes at Large Volume 95.djvu/340

 95 STAT. 314 26 USC 2032A ^°^-

PUBLIC LAW 97-34—AUG. 13, 1981 (5) CERTAIN AMENDMENTS MADE RETROACTIVE TO 1976.— (A) IN GENERAL.—The amendments made by subsections (b)(1), (c)(2), (j)(l), and Cj)(2) shall apply with respect to the estates of decedents dying after December 31, 1976. (B) TIMELY ELECTION REQUIRED.—Subparagraph (A) shall only apply in the case of an estate if a timely election under section 2032A was made with respect to such estate. If the time for making an election under section 2032A with respect to any estate would have otherwise expired after July 28, 1980, the time for making such election shall not expire before the date 6 months after the date of the enactment of this Act. (C) REINSTATEMENT OF ELECTIONS.—If any election under section 2032A was revoked before the date of the enactment of this Act, such election may be reinstated within 6 months after the date of the enactment of this Act. (D) STATUTE OF LIMITATIONS.—If on the date of the enactment of this Act (or at any time within 6 months after such date of enactment) the making of a credit or refund of any overpayment of tax resulting from the amendments described in subparagraph (A) is barred by any law or rule of law, such credit or refund shall nevertheless be made if claim therefor is made before the date 6 months after such date of enactment. SEC. 422. COORDINATION OF EXTENSIONS OF TIME FOR PAYMENT OF ESTATE TAX WHERE ESTATE CONSISTS LARGELY OF INTEREST IN CLOSELY HELD BUSINESS. (a) ELIGIBILITY REQUIREMENTS.—

26 USC 6166.

(1) IN GENERAL.—Paragraph (1) of section 6166(a) (relating to alternate extension of time for payment of estate tax where estate consists largely of interest in closely held business) is amended by striking out "65 percent" and inserting in lieu thereof "35 percent". (2) INTERESTS IN 2 OR MORE CLOSELY HELD BUSINESSES.—Subsec-

26 USC 303.

tion (c) of section 6166 (relating to interests in 2 or more closely held businesses) is amended by striking out "more than 20 percent" and inserting in lieu thereof 20 percent or more". (b) COORDINATION WITH SECTION 303.— (1) IN GENERAL.—Subparagraph (A) of section 303(b)(2) (relating to relationship of stock to decedent's estate) is amended by striking out "50 percent" and inserting in lieu thereof "35 percent". (2) CONFORMING AMENDMENT.—Subparagraph (B) of section

303(b)(2) is amended to read as follows: "(B) SPECIAL RULE FOR STOCK IN 2 OR MORE CORPORATIONS.—

For purposes of subparagraph (A), stock of 2 or more corporations, with respect to each of which there is included in determining the value of the decedent's gross estate 20 percent or more in value of the outstanding stock, shall be treated as the stock of a single corporation. For purposes of the 20-percent requirement of the preceding sentence, stock which, at the decedent's death, represents the surviving spouse's interest in property held by the decedent and the surviving spouse as community property or as joint tenants, tenants by the entirety, or tenants in common shall be treated as having been included in determining the value of the decedent's gross estate."

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