GIFT TAX.

SEC. 102. GIFT TAX. (a) Amendments to Subchapter A of Chapter 12.— (1) Section 2501.— (A) Paragraph (1) of subsection (a) of section 2501 is amended to read as follows: “(1) General rule.—For the first calendar quarter of calendar year 1971 and each calendar quarter thereafter a tax, computed 84 Stat. 1839as provided in section 2502, is hereby imposed on the transfer of property by gift during such calendar quarter by any individual, resident or nonresident.” (B) Paragraph (4) of such subsection is amended by striking out “calendar year” and inserting in lieu thereof “calendar quarter”. (2) Section 2502.— (A) So much of subsection (a) of section 2502 as precedes the rate schedule is amended to read as follows: “(a) Computation or Tax.—The tax imposed by section 2501 for each calendar quarter shall be an amount equal to the excess of— “(1) a tax, computed in accordance with the rate schedule set forth in this subsection, on the aggregate sum of the taxable gifts for such calendar quarter and for each of the preceding calendar years and calendar quarters, over “(2) a tax, computed in accordance with such rate schedule, on the aggregate sum of the taxable gifts for each of the preceding calendar years and calendar quarters.” (B) Subsections (b) and (c) of section 2502 are amended to read as follows: “(b) Calendar Quarter.—Wherever used in this title in connection with the gift tax imposed by this chapter, the term ‘calendar quarter includes only the first calendar quarter of the calendar year 1971 and succeeding calendar quarters. “(c) Preceding Calendar Years and Quarters.—Wherever used in this title in connection with the gift tax imposed by this chapter— “(1) The term ‘preceding calendar years’ means calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970. The term ‘calendar year 1932’ includes only the portion of such year after June 6, 1932. “(2) The term ‘preceding calendar quarters’ means the first calendar quarter of calendar year 1971 and all calendar quarters intervening between such calendar quarter and the calendar quarter for which the tax is being computed.” (3) Section 2503.— (A) Subsection (a) of section 2503 is amended to read as follows: “(a) General Definition.—The term ‘taxable gifts’ means, in the case of gifts made after December 31, 1970, the total amount of gifts made during the calendar quarter, less the deduct ions provided in subchapter C (sec. 2521 and following). In the case of gifts made before January 1, 1971, such term means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C.” (B) The heading and first sentence of subsection (b) of section 2503 are amended to read as follows: “(b) Exclusions From Gifts.—In computing taxable gifts for the calendar quarter, in the case of gifts (other than gifts of future interests in property) made to any person by the donor during the calendar year 1971 and subsequent calendar years, $3,000 of such gifts to such person less the aggregate of the amounts of such gifts to such person during all preceding calendar quarters of the calendar year shall not, for purposes of subsection (a), be included in the total amount of gifts made during such quarter.” (4) Section 2004.— (A) Section 2504 is amended to read as follows: 84 Stat. 1840 “SEC. 2504. TAXABLE GIFTS FOR PRECEDING YEARS AND QUARTERS. “(a) In General.—In computing taxable gifts for preceding calendar years or calendar quarters for the purpose of computing the tax for any calendar quarter, there shall be treated as gifts such transfers as were considered to be gifts under the gift tax laws applicable to the years or calendar quarters in which the transfers were made and there shall be allowed such deductions as were provided for under such laws; except that the specific exemption in the amount, if any, allowable under section 2521 shall be applied in all computations in respect of previous calendar years or calendar quarters for the purpose of computing the tax for any calendar year or calendar quarter. “(b) Exclusions From Gums for Preceding Years and Quarters.—In the case of gifts made to any person by the donor during preceding calendar years and calendar quarters, the amount excluded, if any, by the provisions of gift tax laws applicable to the years and calendar quarters in which the gifts were made shall not, for purposes of subsection (a), be included in the total amount of the gifts made during such years and calendar quarters. “(c) Valuation of Certain Gifts for Preceding Calendar Years and Quarters.—If the time has expired within which a tax may be assessed under this chapter or under corresponding provisions of prior laws on the transfer of property by gift made during a preceding calendar year or calendar quarter, as defined in section 2502(c), and if a tax under this chapter or under corresponding provisions of prior laws has been assessed or paid for such preceding calendar year or calendar quarter, the value of such gift made in such preceding calendar year or calendar quarter shall, for purposes of computing the tax under this chapter for any calendar quarter, be the value of such gift which was used in computing the tax for the last preceding calendar year or calendar quarter for which a tax under this chapter or under corresponding provisions of prior laws was assessed or paid. “(d) Net Gifts.—The term ‘net gifts’ as used in corresponding provisions of prior laws shall be read as ‘taxable gifts’ for purposes of this chapter.” (B) The table of sections for subchapter A of chapter 12 is amended by striking out the item relating to section 2504 and inserting in lieu thereof the following: “2504. Taxable gifts for preceding years and quarters. (b) Amendments to Subctiafter B of Chapter 12.— (1) Section 2512.—Subsection (b) of section 2512 is amended by striking out “calendar year” and inserting in lieu thereof “calendar quarter”. (2) Section 2013.— (A) Section 2513 is amended by striking out “calendar year” each place it appears and inserting in lieu thereof “calendar quarter”. (B) Subparagraph (A) of subsection (b)(2) of section 2513 is amended to read as follows: “(A) the consent may not be signified after the 15th day of the second month following the close of such calendar quarter, unless before such 15th day no return has been filed for such calendar quarter by either spouse, in which case the consent may not be signified after a return for such calendar quarter is filed by either spouse;”. 84 Stat. 1841 (C) Subparagraph (B) of subsection (b)(2) of section 2513 is amended by striking out “such year” and inserting in lieu thereof “such calendar quart er”. (D) Subsection (c) of section 2513 is amended by striking out “15th day of April following the close of such year” and inserting in lieu thereof “15th day of the second month following the close of such calendar quarter”. (E) Subsection (d) of section 2513 is amended by striking out “such year” and inserting in lieu thereof “such calendar quarter”. (3) Section 2515.—Subsection (e) of section 2515 is amended by striking out “calendar year” and inserting in lieu thereof “calendar quarter”. (c) Amendments to Subchapter C of Chapter 12.— (1) Section 2521 .—Section 2521 is amended to read as follows: “SEC. 2521. SPECIFIC EXEMPTION.“In computing taxable gifts for a calendar quarter, there shall be allowed as a deduction in the case of a citizen or resident an exemption of $30,000, less the aggregate of the amounts claimed and allowed as a specific exemption in the computation of gift taxes for the calendar year 1932 and all calendar years and calendar quarters intervening between that calendar year and the calendar quarter for which the tax is being computed under the laws applicable to such years or calendar quarters.” (2) Section 2522.—Section 2522 is amended by striking out “year” each place it appears and inserting in lieu thereof “quarter”. (3) Section 2523.—Subsection (a) of section 2523 is amended by striking out “year” each place it appears and inserting in lieu thereof “quarter”. (d) Miscellaneous Amendments.— (1) Paragraph (2) of subsection (d) of section 1015 (relating to increased basis for gift tax paid) is amended— (A) by striking out “calendar year” the first place it appears therein and inserting in lieu thereof “calendar quarter (or calendar year if the gift was made before January 1, 1971)”, and (B) by striking out “calendar year” every other place it appears therein and inserting in lieu thereof “calendar quarter or year”. (2) Section 2012. (A) Paragraph (1) of subsection (b) of section 2012 (relating to credit for gift tax) and paragraph (1) of subsection (d) of such section are each amended by striking out “the year” and inserting in lieu thereof “the calendar quarter (or calendar year if the gift was made before January 1, 1971)”. (B) Subsection (d) of section 2012 is amended by striking out “such year” each place it appears therein and” inserting in lieu thereof “such quarter or year”. (3) Section 6019 (relating to gift tax returns) is amended to read as follows: “SEC. 6019. GIFT TAX RETURNS. “(a) In General.—Any individual who in any calendar quarter makes any transfers by gift (other than transfers which under section 2503(b) are not to be included in the total amount of gifts for such 84 Stat. 1842 quarter and other than qualified charitable transfers) shall make a return for such quarter with respect to the gift tax imposed by subtitle B. “(b) Qualified Charitable Transfers.— “(1) Return requirement.— A return shall be made of any qualified charitable transfer— “(A) for the first calendar quarter, in the calendar year in which the transfer is made, for which a return is required to be filed under subsection (a), or “(B) if no return is required to be filed under subparagraph (A), for the fourth calendar quarter in the calendar year in which such transfer is made. A return made pursuant to the provisions of this paragraph shall be deemed to be. a return with respect to any transfer reported as a qualified charitable transfer for the calendar quarter in which such transfer was made. “(2) Definition of qualified charitable transfer.—For purposes of this section, the. term ‘qualified charitable transfer’ means a transfer by gift with respect to which a deduction is allowable under section 2522 in an amount equal to the amount transferred. “(c) Tenancy by the Entirety.— “For provisions relating to requirement of return in the case of election as to the treatment of gift by creation of tenancy by the entirety, see section 2515(c).” (4) Subsection (b) of section 6075 (relating to time for filing gift tax returns) is amended to read as follows: “(b) Gift Tax Returns.—Returns made under section 6019 (relating to gift taxes) shall be filed on or before the 15th day of the second month following the close of the calendar quarter.” (5) Paragraph (1) of subsection (c) of section 6212 (relating to notice of deficiency ) is amended by st riking out “calendar year” and inserting in lieu thereof “calendar quarter”. (6) Subsection (b) of section 6214 (relating to determination by Tax Court) is amended to read as follows: “(b) Jurisdiction Over Other Years and Quarters.—The Tax Court in redetermining a deficiency of income tax for any taxable year or of gift, tax for any calendar year or calendar quarter shall consider such facts with relation to the taxes for other years or calendar quarters as may be necessary correctly to redetermine the amount of such deficiency, but in so doing shall have no jurisdiction to determine whether or not the tax for any other year or calendar quarter has been overpaid or underpaid.”. (7) Subsection (b) of section 6324 (relating to lien for gift tax) is amended by striking out “calendar year” and inserting in lieu thereof “period for which the return was filed”. (8) Paragraph (2) of section 6501(e) (relating to limitations on assessment and collection) is amended by striking out “during the year” and inserting in lieu thereof “during the period for which the return was filed”. (9) Section 6512 (relating to limitations in case of petition to Tax Court) is amended by striking out “the same calendar year” each place it appears therein and inserting in lieu thereof “the same calendar year or calendar quarter”. (e) Effective Date.—The amendments made by this section shall apply with respect to gifts made after December 31, 1970.