ESTATE TAX.

SEC. 101. ESTATE TAX. (a) Alternate Valuation.—Section 2032 (relating to alternate valuation) is amended— (1) by striking out “1 year” each place it appears and inserting in lieu thereof “6 months”, and (2) by striking out “1-year” and inserting in lieu thereof “6-month”. (b) Time for Filing Estate Tax Returns.—Section 6075(a) (relating to time for filing estate tax returns) is amended by striking out. “15 months” and inserting in lieu thereof “9 months”. (c) Certain Requests Subject to Power of Appointment.—Section 2055(b) (2) (C) is amended by striking out “one year” and inserting in lieu thereof “6 months”. (d) Discharge of Fiduciary From Personal Liability for Estate Tax — (1) Section 2204 (relating to discharge of executor from personal liability) is amended— (A) by striking out “EXECUTOR” in the heading of such section and inserting in lieu thereof “FIDUCIARY”; (B) by striking out “If the executor” and inserting in lieu thereof “(a) General Rule.—If the executor”; (C) by amending the last sentence thereof to read as follows: “The executor, on payment of the amount of which he is notified (other than any amount the time for payment of which is extended under section 6161, 6163, or 6166), and on furnishing any bond which may be required for any amount for which the time for payment is extended, shall be discharged from personal liability for any deficiency in tax thereafter found to be due and shall be entitled to a receipt or writing showing such discharge.”; and (D) by adding at the end thereof the following new subsection: “(b) Fiduciary Other Than the Executor.—If a fiduciary (not including a fiduciary in respect of the estate of a nonresident decedent) other than the executor makes written application to the Secretary or his delegate for determination of the amount of any estate tax for which the fiduciary may be personally liable, and for discharge from personal liability therefor, the Secretary or his delegate upon the discharge of the executor from personal liability under subsection (a),84 Stat. 1837 or upon the expiration of 6 months after the making of such application by the fiduciary, if later, shall notify the fiduciary (1) of the amount of such tax for which it has been determined the fiduciary is liable, or (2) that it has been determined that the fiduciary is not liable for any such tax. Such application shall be accompanied by a copy of the instrument, if any, under which such fiduciary is acting, a description of the property held by the fiduciary, and such other information for purposes of carrying out the provisions of this section as the Secretary or his delegate may require by regulations. On payment of the amount of such tax for which it has been determined the fiduciary is liable (other than any amount the time for payment of which has not been extended under section 6161, 6163, or 6166), and on furnishing any bond which may be required for any amount for which the time for payment has been extended, or on receipt by him of notification of a determination that he is not liable for any such tax, the fiduciary shall lie discharged from personal liability for any deficiency in such tax thereafter found to be due and shall be entitled to a receipt or writing evidencing such discharge.” (2) Sections 6040(2), 6314(c)(2), 6324(a)(3), and 6504(9) are each amended by striking out “executor” each place it appears in the heading and text of such sections and inserting in lieu thereof “fiduciary”. (3) The table of sections for subchapter C of chapter 11 is amended by striking out “Sec. 2204. Discharge of executor from personal liability.”. “Sec. 2204. Discharge of executor from personal liability.”. and inserting in lieu thereof: “Sec. 2204. Discharge of executor from personal liability.”. “Sec. 2204. Discharge of fiduciary from personal liability.”. (e) Discharge of Executor From Personal Liability for Decedent’s Income and Gift Taxes.— (1) Chapter 71 (relating to transferees and fiduciaries) is amended by adding at the end thereof the following new section: “SEC. 6905. DISCHARGE OF EXECUTOR FROM PERSONAL LIABILITY FOR DECEDENT’S INCOME AND GIFT TAXES. “(a) Discharge of Liability.—In the case of liability of a decedent for taxes imposed by subtitle A or by chapter 12, if the executor makes written application (filed after the return with respect to such taxes is made and filed in such manner and such form as may be prescribed by regulations of the Secretary or his delegate) for release from personal liability for such taxes, the Secretary or his delegate may notify the executor of the amount of such taxes. The executor, upon payment of the amount of which he is notified, or 1 year after receipt of the application if no notification is made by the Secretary or bis delegate before such date, shall be discharged from personal liability for any deficiency in such tax thereafter found to be due and shall be entitled to a receipt or writing showing such discharge. “(b) Definition of Executor.—For purposes of this section, the term ‘executor’ means the executor or administrator of the decedent appointed, qualified, and acting within the United States. “(c) Cross Reference.— “For discharge of executor from personal liability for taxes imposed under chapter 11, see section 2204.” (2) The table of sections for chapter 71 is amended by adding at the end thereof the following: “Sec. 6005. Discharge of executor from personal liability for decedent’s income and gift taxes.” 84 Stat. 1838 (f) Reduction of Period for Discharge of Executor From Personal Liability.—Effective with respect to the estates of decedents dying after December 31, 1973, sections 2204 and 6905 are each amended by striking out ‘‘1 year” and inserting in lieu thereof “9 months”, (g) Holding Period of Property.—Section 1223 (relating to holding period of property) is amended by redesignating paragraph (11) as paragraph (12) and by inserting after paragraph (10) the following new paragraph: “(11) In the case of a person acquiring property from a decedent or to whom property passed from a decedent (within the meaning of section 1014(b)), if— “(A) the basis of such property in the hands of such person is determined under section 1014, and “(B) such property is sold or otherwise disposed of by such person within 6 months after the decedent’s death, then such person shall be considered to have held such property for more than 6 months.” (h) Extension of Time.—The first sentence of paragraph (1) of subsection (a) of section 6161 (relating to extension of time for paying tax) is amended by striking out “6 months” and inserting in lieu thereof “6 months (12 months in the case of estate tax) ”. (i) Place for Filing Returns.— (1) Paragraph (3) of section 6091(b) (relating to place for filing returns or other documents) is amended to read as follows: “(3) Estate tax returns.— “(A) General rule.—Except as provided in subparagraph (B), returns of estate tax required under section 6018 shall be made to the Secretary or his delegate— “(i) in the internal revenue district in which was the domicile of the decedent at the time of his death, or “(ii) at a service center serving the internal revenue district referred to in clause (i), as the Secretary or his delegate may by regulations designate. “(B) Exception.—If the domicile of the decedent was not in an internal revenue district, or if he had no domicile, the estate tax return required under section 6018 shall be made at such place as the Secretary or his delegate may by regulations designate.” (2) Paragraph (4) of section 6091(b) is amended to read as follows: (3) Hand-carried returns.—Notwithstanding paragraph (1), (2), or (3), a return to which paragraph (1)(A), (2) (A), or (3) (A) would apply, but for this paragraph, which is made to the Secretary or his delegate by hand-carrying shall, under regulations prescribed by the Secretary or his delegate, be made in the internal revenue district referred to in paragraph (1) (A) (i), (2) (A) (i), or (3) (A) (i), as the case may be.” (j) Effective Date.—The amendments made by this section (other than subsection (f)) shall apply with respect to decedents dying after December 31, 1970.