Imposition of tax
In general
If, during any calendar year, any United States citizen or resident receives any covered gift or bequest, there is hereby imposed a tax equal to the product of—
the highest rate of tax specified in the table contained in section 2001(c) as in effect on the date of such receipt (or, if greater, the highest rate of tax specified in the table applicable under section 2502(a) as in effect on the date), and
the value of such covered gift or bequest.
Tax to be paid by recipient
Exception for certain gifts
Tax reduced by foreign gift or estate tax
Covered gift or bequest
In general
For purposes of this chapter, the term “covered gift or bequest” means—
any property acquired by gift directly or indirectly from an individual who, at the time of such acquisition, is a covered expatriate, and
any property acquired directly or indirectly by reason of the death of an individual who, immediately before such death, was a covered expatriate.
Exceptions for transfers otherwise subject to estate or gift tax
Such term shall not include—
any property shown on a timely filed return of tax imposed by chapter 12 which is a taxable gift by the covered expatriate, and
any property included in the gross estate of the covered expatriate for purposes of chapter 11 and shown on a timely filed return of tax imposed by chapter 11 of the estate of the covered expatriate.
Exceptions for transfers to spouse or charity
Transfers in trust
Domestic trusts
In the case of a covered gift or bequest made to a domestic trust—
subsection (a) shall apply in the same manner as if such trust were a United States citizen, and
the tax imposed by subsection (a) on such gift or bequest shall be paid by such trust.
Foreign trusts
In general
Deduction for tax paid by recipient
Election to be treated as domestic trust
Covered expatriate
Notes
Effective Date
In general.—
Except as provided in this subsection, the amendments made by this section [enacting this chapter and section 877A of this title and amending sections 877, 6039G, and 7701 of this title] shall apply to any individual whose expatriation date (as so defined) is on or after the date of the enactment of this Act [
Gifts and bequests.—
Chapter 15 of the Internal Revenue Code of 1986 (as added by subsection (b)) shall apply to covered gifts and bequests (as defined in section 2801 of such Code, as so added) received on or after the date of the enactment of this Act from transferors (or from the estates of transferors) whose expatriation date is on or after such date of enactment.”