
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC7520]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                  CHAPTER 77--MISCELLANEOUS PROVISIONS
 
Sec. 7520. Valuation tables


(a) General rule

    For purposes of this title, the value of any annuity, any interest 
for life or a term of years, or any remainder or reversionary interest 
shall be determined--
        (1) under tables prescribed by the Secretary, and
        (2) by using an interest rate (rounded to the nearest 2/10ths of 
    1 percent) equal to 120 percent of the Federal midterm rate in 
    effect under section 1274(d)(1) for the month in which the valuation 
    date falls.

If an income, estate, or gift tax charitable contribution is allowable 
for any part of the property transferred, the taxpayer may elect to use 
such Federal midterm rate for either of the 2 months preceding the month 
in which the valuation date falls for purposes of paragraph (2). In the 
case of transfers of more than 1 interest in the same property with 
respect to which the taxpayer may use the same rate under paragraph (2), 
the taxpayer shall use the same rate with respect to each such interest.

(b) Section not to apply for certain purposes

    This section shall not apply for purposes of part I of subchapter D 
of chapter 1 or any other provision specified in regulations.

(c) Tables

                           (1) In general

        The tables prescribed by the Secretary for purposes of 
    subsection (a) shall contain valuation factors for a series of 
    interest rate categories.

                          (2) Initial table

        Not later than the day 3 months after the date of the enactment 
    of this section, the Secretary shall prescribe initial tables for 
    purposes of subsection (a). Such tables may be based on the same 
    mortality experience as used for purposes of section 2031 on the 
    date of the enactment of this section.

              (3) Revision for recent mortality charges

        Not later than December 31, 1989, the Secretary shall revise the 
    initial tables prescribed for purposes of subsection (a) to take 
    into account the most recent mortality experience available as of 
    the time of such revision. Such tables shall be revised not less 
    frequently than once each 10 years thereafter to take into account 
    the most recent mortality experience available as of the time of the 
    revision.

(d) Valuation date

    For purposes of this section, the term ``valuation date'' means the 
date as of which the valuation is made.

(e) Tables to include formulas

    For purposes of this section, the term ``tables'' includes formulas.

(Added Pub. L. 100-647, title V, Sec. 5031(a), Nov. 10, 1988, 102 Stat. 
3668.)

                       References in Text

    The date of the enactment of this section, referred to in subsec. 
(c)(2), is the date of enactment of Pub. L. 100-647, which was approved 
Nov. 10, 1988.

                          Codification

    Another section 7520 was renumbered section 7521 of this title.


                             Effective Date

    Section 5031(c) of Pub. L. 100-647 provided that: ``The amendments 
made by this section [enacting this section] shall apply in cases where 
the date as of which the valuation is to be made occurs on or after the 
1st day of the 6th calendar month beginning after the date of the 
enactment of this Act [Nov. 10, 1988].''

                  Section Referred to in Other Sections

    This section is referred to in sections 664, 2702 of this title.
