
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-16 Section 532(c)(3)]
[CITE: 26USC2014]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                    Subtitle B--Estate and Gift Taxes
 
                         CHAPTER 11--ESTATE TAX
 
             Subchapter A--Estates of Citizens or Residents
 
                      PART II--CREDITS AGAINST TAX
 
Sec. 2014. Credit for foreign death taxes


(a) In general

    The tax imposed by section 2001 shall be credited with the amount of 
any estate, inheritance, legacy, or succession taxes actually paid to 
any foreign country in respect of any property situated within such 
foreign country and included in the gross estate (not including any such 
taxes paid with respect to the estate of a person other than the 
decedent). The determination of the country within which property is 
situated shall be made in accordance with the rules applicable under 
subchapter B (sec. 2101 and following) in determining whether property 
is situated within or without the United States.

(b) Limitations on credit

    The credit provided in this section with respect to such taxes paid 
to any foreign country--
        (1) shall not, with respect to any such tax, exceed an amount 
    which bears the same ratio to the amount of such tax actually paid 
    to such foreign country as the value of property which is--
            (A) situated within such foreign country,
            (B) subjected to such tax, and
            (C) included in the gross estate

    bears to the value of all property subjected to such tax; and
        (2) shall not, with respect to all such taxes, exceed an amount 
    which bears the same ratio to the tax imposed by section 2001 (after 
    deducting from such tax the credits provided by sections 2010, 2011, 
    and 2012) as the value of property which is--
            (A) situated within such foreign country,
            (B) subjected to the taxes of such foreign country, and
            (C) included in the gross estate

    bears to the value of the entire gross estate reduced by the 
    aggregate amount of the deductions allowed under sections 2055 and 
    2056.

(c) Valuation of property

    (1) The values referred to in the ratio stated in subsection (b)(1) 
are the values determined for purposes of the tax imposed by such 
foreign country.
    (2) The values referred to in the ratio stated in subsection (b)(2) 
are the values determined under this chapter; but, in applying such 
ratio, the value of any property described in subparagraphs (A), (B), 
and (C) thereof shall be reduced by such amount as will properly 
reflect, in accordance with regulations prescribed by the Secretary, the 
deductions allowed in respect of such property under sections 2055 and 
2056 (relating to charitable and marital deductions).

(d) Proof of credit

    The credit provided in this section shall be allowed only if the 
taxpayer establishes to the satisfaction of the Secretary--
        (1) the amount of taxes actually paid to the foreign country,
        (2) the amount and date of each payment thereof,
        (3) the description and value of the property in respect of 
    which such taxes are imposed, and
        (4) all other information necessary for the verification and 
    computation of the credit.

(e) Period of limitation

    The credit provided in this section shall be allowed only for such 
taxes as were actually paid and credit therefor claimed within 4 years 
after the filing of the return required by section 6018, except that--
        (1) If a petition for redetermination of a deficiency has been 
    filed with the Tax Court within the time prescribed in section 
    6213(a), then within such 4-year period or before the expiration of 
    60 days after the decision of the Tax Court becomes final.
        (2) If, under section 6161, an extension of time has been 
    granted for payment of the tax shown on the return, or of a 
    deficiency, then within such 4-year period or before the date of the 
    expiration of the period of the extension.

Refund based on such credit may (despite the provisions of sections 6511 
and 6512) be made if claim therefor is filed within the period above 
provided. Any such refund shall be made without interest.

(f) Additional limitation in cases involving a deduction under section 
        2053(d)

    In any case where a deduction is allowed under section 2053(d) for 
an estate, succession, legacy, or inheritance tax imposed by and 
actually paid to any foreign country upon a transfer by the decedent for 
public, charitable, or religious uses described in section 2055, the 
property described in subparagraphs (A), (B), and (C) of paragraphs (1) 
and (2) of subsection (b) of this section shall not include any property 
in respect of which such deduction is allowed under section 2053(d).

(g) Possession of United States deemed a foreign country

    For purposes of the credits authorized by this section, each 
possession of the United States shall be deemed to be a foreign country.

(h) Similar credit required for certain alien residents

    Whenever the President finds that--
        (1) a foreign country, in imposing estate, inheritance, legacy, 
    or succession taxes, does not allow to citizens of the United States 
    resident in such foreign country at the time of death a credit 
    similar to the credit allowed under subsection (a),
        (2) such foreign country, when requested by the United States to 
    do so has not acted to provide such a similar credit in the case of 
    citizens of the United States resident in such foreign country at 
    the time of death, and
        (3) it is in the public interest to allow the credit under 
    subsection (a) in the case of citizens or subjects of such foreign 
    country only if it allows such a similar credit in the case of 
    citizens of the United States resident in such foreign country at 
    the time of death,

the President shall proclaim that, in the case of citizens or subjects 
of such foreign country dying while the proclamation remains in effect, 
the credit under subsection (a) shall be allowed only if such foreign 
country allows such a similar credit in the case of citizens of the 
United States resident in such foreign country at the time of death.

(Aug. 16, 1954, ch. 736, 68A Stat. 378; Pub. L. 85-866, title I, 
Sec. 102(c)(2), Sept. 2, 1958, 72 Stat. 1674; Pub. L. 86-175, Sec. 2, 
Aug. 21, 1959, 73 Stat. 397; Pub. L. 89-809, title I, Sec. 106(b)(3), 
Nov. 13, 1966, 80 Stat. 1570; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), title XX, Sec. 2001(c)(1)(G), Oct. 4, 1976, 90 
Stat. 1834, 1852.)


                               Amendments

    1976--Subsec. (b)(2). Pub. L. 94-455, Sec. 2001(c)(1)(G), inserted 
reference to section 2010 in introductory provisions.
    Subsecs. (c), (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out 
``or his delegate'' after ``Secretary''.
    1966--Subsec. (a). Pub. L. 89-809 struck out provision that, if the 
decedent at the time of his death was not a citizen of the United 
States, credit would not be allowed under this section unless the 
foreign country of which the decedent was a citizen or subject, in 
imposing estate, inheritance, legacy, or succession taxes, allows a 
similar credit in the case of a citizen of the United States resident in 
such country.
    Subsec. (h). Pub. L. 89-809 added subsec. (h).
    1959--Subsecs. (f), (g). Pub. L. 86-175 added subsec. (f) and 
redesignated former subsec. (f) as (g).
    1958--Subsec. (f). Pub. L. 85-866 added subsec. (f).


                    Effective Date of 1966 Amendment

    Amendment by Pub. L. 89-809 applicable with respect to estates of 
decedents dying after Nov. 13, 1966, see section 106(b)(4) of Pub. L. 
89-809, set out as a note under section 901 of this title.


                    Effective Date of 1959 Amendment

    Amendment by Pub. L. 86-175 applicable with respect to estates of 
decedents dying on or after July 1, 1955, see section 4 of Pub. L. 86-
175, set out as a note under section 2053 of this title.


                    Effective Date of 1958 Amendment

    Amendment by Pub. L. 85-866 applicable to estates of decedents dying 
after Sept. 2, 1958, see section 102(d) of Pub. L. 85-866, set out as a 
note under section 2011 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2013, 2015, 2016, 2053, 
2056A, 6511, 6612 of this title.
