SUBCHAPTER B-ADDITIONAL ESTATE TAX SEC. 935. RATE OF TAX. (a) In addition to the estate tax imposed by section 810 or 860, there shall be imposed upon the transfer of the net estate of every decedent dying after the date of the enactment of this title, whether a citizen or resident of the United States or a nonresident not a citizen of the United States, a tax equal to the excess of (1) the amount of a tentative tax computed under subsection (b) of this section, over (2) the amount of the tax imposed by section 810, in the case of a citizen or resident of the United States, or 860, in the case of a nonresident not a citizen of the United States, computed without regard to the provisions of this subchapter. (b) The tentative tax referred to in subsection (a) (1) of this section shall equal the sum of the following percentages of the value of the net estate: Upon net estates not in excess of $10,000, 2 per centum. $200 upon net estates of $10,000; and upon net estates in excess of $10,000 and not in excess of $20,000, 4 per centum in addition of such excess. $600 upon net estates of $20,000; and upon net estates in excess of $20,000 and not in excess of $30,000, 6 per centum in addition of such excess. $1,200 upon net estates of $30,000; and upon net estates in excess of $30,000 and not in excess of $40,000, 8 per centum in addition of such excess. $2,000 upon net estates of $40,000; and upon net estates in excess of $40,000 and not in excess of $50,000, 10 per centum in addition of such excess. $3,000 upon net estates of $50,000; and upon net estates in excess of $50,000 and not in excess of $70,000, 12 per centum in addition of such excess. $5,400 upon net estates of $70,000; and upon net estates in excess of $70,000 and not in excess of $100,000, 14 per centum in addition of such excess. $9,600 upon net estates of $100,000; and upon net estates in excess of $100,000 and not in excess of $200,000, 17 per centum in addition of such excess. $26,600 upon net estates of $200,000; and upon net estates in excess of $200,000 and not in excess of $400,000, 20 per centum in addition of such excess. $66,600 upon net estates of $400,000; and upon net estates in excess of $400,000 and not in excess of $600,000, 23 per centum in addition of such excess. $112,600 upon net estates of $600,000; and upon net estates in excess of $600,000 and not in excess of $800,000, 26 per centum in addition of such excess. $164,600 upon net estates of $800,000; and upon net estates in excess of $800,000 and not in excess of $1,000,000, 29 per centum in addition of such excess. $222,600 upon net estates of $1,000,000; and upon net estates in excess of $1,000,000 and not in excess of $1,500,000, 32 per centum in addition of such excess. $382,600 upon net estates of $1,500,000; and upon net estates in excess of $1,500,000 and not in excess of $2,000,000, 35 per centum in addition of such excess. $557,600 upon net estates of $2,000,000; and upon net estates in excess of $2,000,000 and not in excess of $2,500,000, 38 per centum in addition of such excess. $747,600 upon net estates of $2,500,000; and upon net estates in excess of $2,500,000 and not in excess of $3,000,000, 41 per centum in addition of such excess. $952,600 upon net estates of $3,000,000; and upon net estates in excess of $3,000,000 and not in excess of $3,500,000, 44 per centum in addition of such excess. $1,172,600 upon net estates of $3,500,000; and upon net estates in excess of $3,500,000 and not in excess of $4,000,000, 47 per centum in addition of such excess. $1,407,600 upon net estates of $4,000,000; and upon net estates in excess of $4,000,000 and not in excess of $4,500,000, 50 per centum in addition of such excess. $1,657,600 upon net estates of $4,500,000; and upon net estates in excess of $4,500,000 and not in excess of $5,000,000, 53 per centum in addition of such excess. $1,922,600 upon net estates of $5,000,000; and upon net estates in excess of $5,000,000 and not in excess of $6,000,000, 56 per centum in addition of such excess. $2,482,600 upon net estates of $6,000,000; and upon net estates in excess of $6,000,000 and not in excess of $7,000,000, 59 per centum in addition of such excess. $3,072,600 upon net estates of $7,000,000; and upon net estates in excess of $7,000,000 and not in excess of $8,000,000, 61 per centum in addition of such excess. $3,682,600 upon net estates of $8,000,000; and upon net estates in excess of $8,000,000 and not in excess of $9,000,000, 63 per centum in addition of such excess. $4,312,600 upon net estates of $9,000,000; and upon net estates in excess of $9,000,000 and not in excess of $10,000,000, 65 per centum in addition of such excess. $4,962,600 upon net estates of $10,000,000; and upon net estates in excess of $10,000,000 and not in excess of $20,000,000, 67 per centum in addition of such excess. $11,662,600 upon net estates of $20,000,000; and upon net estates in excess of $20,000,000 and not in excess of $50,000,000, 69 per centum in addition of such excess. $32,362,600 upon net estates of $50,000,000; and upon net estates in excess of $50,000,000, 70 per centum in addition of such excess. (c) For the purposes of this section the value of the net estate shall be determined as provided in subchapter A, except that in lieu of the exemption of $100,000 provided in section 812 (a), the exemption shall be $40,000. SEC. 936. CREDITS AGAINST TAX. (a) The credit provided in section 813 (b) (80 per centum credit), shall not be allowed in respect of such additional tax. (b) (1) If a tax has been paid under chapter 4 on a gift, and thereafter upon the death of the donor any amount in respect of such gift is required to be included in the value of the gross estate of the decedent for the purposes of this subchapter, then there shall be credited against the tax imposed by section 935 the amount of the tax paid under chapter 4 with respect to so much of the property which constituted the gift as is included in the gross estate, except that the amount of such credit (A) shall not exceed an amount which bears the same ratio to the tax imposed by section 935 as the value (at the time of the gift or at the time of the death, whichever is lower) of so much of the property which constituted the gift as is included in the gross estate, bears to the value of the entire gross estate, and (B) shall not exceed the amount by which the gift tax paid under chapter 4 with respect to so much of the property as constituted the gift as is included in the gross estate, exceeds the amount of the credit under section 813 (b). (2) For the purposes of paragraph (1), the amount of tax paid for any year under chapter 4 with respect to any property shall be an amount which bears the same ratio to the total tax paid for such year as the value of such property bears to the total amount of net gifts (computed without deduction of the specific exemption) for such year. SEC. 937. ASSESSMENT, COLLECTION, AND PAYMENT OF TAX. Except as provided in section 936, the tax imposed by section 935 shall be assessed, collected, and paid, in the same manner, and shall be subject to the same provisions of law (including penalties), as the tax imposed by subchapter A, except that in the case of a citizen or resident of the United States a return shall be required if the value of the gross estate at the time of decedent's death exceeds the amount of the specific exemption provided in section 935 (c). SEC. 938. PUBLICITY OF RETURNS. For provisions with respect to publicity of returns under this chapter, see subsection (a) (2) of section 55. TABLE OF CONTENTS Sec. 1000. Imposition of tax. CHAPTER 4-GIFT TAX Sec. 1001. Computation of tax. Sec. 1002. Transfer for less than adequate and full consideration. Sec. 1004. Deductions. Sec. 1005. Gifts made in property. Sec. 1006. Returns. Sec. 1007. Records and special returns. Sec. 1008. Payment of tax. Sec. 1009. Lien for tax. Sec. 1010. Examination of return and determination of tax. Sec. 1011. Definition of deficiency. Sec. 1012. Assessment and collection of deficiencies. Sec. 1013. Jeopardy assessments. Sec. 1014. Claims in abatement. Sec. 1015. Bankruptcy and receiverships. Sec. 1016. Period of limitation upon assessment and collection. Sec. 1017. Suspension of running of statute. Sec. 1018. Addition to the tax in case of delinquent return. Sec. 1019. Additions to the tax in case of deficiency. Sec. 1020. Interest on extended payments. Sec. 1021. Interest on deficiencies. Sec. 1022. Interest on jeopardy assessments. Sec. 1023. Additions to the tax in case of nonpayment. Sec. 1024. Penalties. Sec. 1025. Transferred assets. Sec. 1026. Notice of fiduciary relationship. Sec. 1027. Refunds and credits. Sec. 1028. Laws made applicable. Sec. 1029. Rules and regulations. Sec. 1030. Definitions. Sec. 1031. Publicity of returns. CHAPTER 4-GIFT TAX SEC. 1000. IMPOSITION OF TAX. (a) For the calendar year 1940 and each calendar year thereafter a tax, computed as provided in section 1001, shall be imposed upon the transfer during such calendar year by any individual, resident or nonresident, of property by gift. Gift taxes for the calendar years 19321939, inclusive, shall not be affected by the provisions of this chapter, but shall remain subject to the applicable provisions of the Revenue Act of 1932, except as such provisions are modified by legislation enacted subsequent to the Revenue Act of 1932. (b) The tax shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible; but, in the case of a nonresident not a citizen of the United States, shall apply to a transfer only if the property is situated within the United States. SEC. 1001. COMPUTATION OF TAX. (a) The tax for each calendar year shall be an amount equal to the excess of (1) a tax, computed in accordance with the Rate Schedule hereinafter set forth, on the aggregate sum of the net gifts for such calendar year and for each of the preceding calendar years, over (2) a tax, computed in accordance with the said Rate Schedule, on the aggregate sum of the net gifts for each of the preceding calendar years. RATE SCHEDULE Upon net gifts not in excess of $10,000, 12 per centum. $150 upon net gifts of $10,000; and upon net gifts in excess of $10,000 and not in excess of $20,000, 3 per centum in addition of such excess. $450 upon net gifts of $20,000; and upon net gifts in excess of $20,000 and not in excess of $30,000, 42 per centum in addition of such excess. $900 upon net gifts of $30,000; and upon net gifts in excess of $30,000 and not in excess of $40,000, 6 per centum in addition of such excess. $1,500 upon net gifts of $40,000; and upon net gifts in excess of $40,000 and not in excess of $50,000, 72 per centum in addition of such excess. $2,250 upon net gifts of $50,000; and upon net gifts in excess of $50,000 and not in excess of $70,000, 9 per centum in addition of such excess. $4,050 upon net gifts of $70,000; and upon net gifts in excess of $70,000 and not in excess of $100,000, 101⁄2 per centum in addition of such excess. $7,200 upon net gifts of $100,000; and upon net gifts in excess of $100,000 and not in excess of $200,000, 1234 per centum in addition of such excess. $19,950 upon net gifts of $200,000; and upon net gifts in excess of $200,000 and not in excess of $400,000, 15 per centum in addition of such excess. $49,950 upon net gifts of $400,000; and upon net gifts in excess of $400,000 and not in excess of $600,000, 174 per centum in addition of such excess. $84,450 upon net gifts of $600,000; and upon net gifts in excess of $600,000 and not in excess of $800,000, 1912 per centum in addition of such excess. $123,450 upon net gifts of $800,000; and upon net gifts in excess of $800,000 and not in excess of $1,000,000, 2134 per centum in addition of such excess. $166,950 upon net gifts of $1,000,000; and upon net gifts in excess of $1,000,000 and not in excess of $1,500,000, 24 per centum in addition of such excess. $286,950 upon net gifts of $1,500,000; and upon net gifts in excess of $1,500,000 and not in excess of $2,000,000, 264 per centum in addition of such excess. $418,200 upon net gifts of $2,000,000; and upon net gifts in excess of $2,000,000 and not in excess of $2,500,000, 281⁄2 per centum in addition of such excess. $560,700 upon net gifts of $2,500,000; and upon net gifts in excess of $2,500,000 and not in excess of $3,000,000; 3034 per centum in addition of such excess. $714,450 upon net gifts of $3,000,000; and upon net gifts in excess of $3,000,000 and not in excess of $3,500,000, 33 per centum in addition of such excess. $879,450 upon net gifts of $3,500,000; and upon net gifts in excess of $3,500,000 and not in excess of $4,000,000, 354 per centum in addition of such excess. $1,055,700 upon net gifts of $4,000,000; and upon net gifts in excess of $4,000,000 and not in excess of $4,500,000, 372 per centum in addition of such excess. $1,243,200 upon net gifts of $4,500,000; and upon net gifts in excess of $4,500,000 and not in excess of $5,000,000, 3934 per centum in addition of such excess. $1,441,950 upon net gifts of $5,000,000; and upon net gifts in excess of $5,000,000 and not in excess of $6,000,000, 42 per centum in addition of such excess. |