EXCLUSION OF CERTAIN TRANSFERS TAKING EFFECT AT DEATH.

SEC. 207. EXCLUSION OF CERTAIN TRANSFERS TAKING EFFECT AT DEATH. (a) Decedents Dying After February 10, 1939.—Paragraph (1) of section 811 (c) (relating to the inclusion of certain interests in the decedent’s gross estate) is hereby amended by inserting after subparagraph (C) the following: “Subparagraph (B) shall not apply to a transfer made before March 4, 1931; nor shall subparagraph (B) apply to a transfer made after March 3, 1931, and before June 7, 1932, unless the property transferred would have been includible in the decedent’s gross estate by reason of the amendatory language of the joint resolution of March 3, 1931 (46 Stat. 1516).” (b) Decedents Dying Before February 11, 1939.—For the purposes of section 302 (c) of the Revenue Act of 1926, as amended, an interest of a decedent shall not be included in his gross estate as intended to take effect in possession or enjoyment at or after his death unless it would have been includible as such a transfer under section 811 (c) (2) of the Internal Revenue Code, as amended by section 7 of Public Law 378, Eighty-first Congress, approved October 25, 1949 (63 Stat. 891), had such section 811 (c) (2), as so amended, applied to the estate of such decedent. No refund or credit of any overpayment resulting from the application of this subsection shall be allowed or made if prevented by the operation of the statute of limitations Or by any other law or rule of law; except that if the determination of the Federal estate tax liability in respect of the estate of any decedent dying before February 11, 1939, was pending on January 17, 1949, in the Tax Court of the United States or in any other court of competent jurisdiction, or if a decision of the Tax Court of the United States or such other court determining such estate tax liability did not become final until on or after January 17, 1949, then refund or credit of any overpayment resulting from the application of this subsection may, nevertheless, be made or allowed if claim therefor is filed within one year from the date of the enactment of this Act, notwithstanding section 319 (a) of the Revenue Act of 1926 or any other law or rule of law which would otherwise prevent the allowance of such refund or credit. (c) Interest.—No interest shall be allowed or paid on any overpayment resulting from the application of this section with respect to any payment made before the date of the enactment of this Act. (d) Effective Date.—The amendment made by subsection (a) shall apply with respect to estates of decedents dying after February 10, 1939. Subsection (b) shall apply only with respect to estates of decedents dying before February 11, 1939.