Page:United States Statutes at Large Volume 115 Part 1.djvu/113

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PUBLIC LAW 107-16^JUNE 7, 2001 115 STAT. 91 (c) EFFECTIVE DATE. —The amendments made by this section Applicability. shall apply to transfers subject to chapter 11 or 12 of the Internal 26 USC 2642 Revenue Code of 1986 made after December 31, 2000. ° °*^ SEC. 564. RELIEF PROVISIONS. (a) IN GENERAL.— Section 2642 is amended by adding at the 26 USC 2642. end the following new subsection: "(g) RELIEF PROVISIONS.— " (1) RELIEF FROM LATE ELECTIONS.— "(A) IN GENERAL.—The Secretary shall by regulation Regulations. prescribe such circumstances and procedures under which extensions of time will be granted to make—

"(i) an allocation of GST exemption described in paragraph (1) or (2) of subsection (b), and "(ii) an election under subsection (b)(3) or (c)(5) of section 2632. Such regulations shall include procedures for requesting comparable relief with respect to transfers made before the date of the enactment of this paragraph. "(B) BASIS FOR DETERMINATIONS.— In determining whether to grant relief under this paragraph, the Secretary shall take into account all relevant circumstances, including evidence of intent contained in the trust instrument or instrument of transfer and such other factors as the Secretary deems relevant. For purposes of determining whether to grant relief under this paragraph, the time for making the allocation (or election) shall be treated as if not expressly prescribed by statute. "(2) SUBSTANTIAL COMPLIANCE.— An allocation of GST

exemption under section 2632 that demonstrates an intent

to have the lowest possible inclusion ratio with respect to a transfer or a trust shall be deemed to be an allocation of so much of the transferor's unused GST exemption as produces the lowest possible inclusion ratio. In determining whether there has been substantial compliance, all relevant circumstances shall be taken into account, including evidence of intent contained in the trust instrument or instrument of transfer and such other factors as the Secretary deems relevant.". (b) EFFECTIVE DATES.— (1) RELIEF FROM LATE ELECTIONS. — Section 2642(g)(1) of the Internal Revenue Code of 1986 (as added by subsection (a)) shall apply to requests pending on, or filed after, December 31, 2000. (2) SUBSTANTIAL COMPLIANCE.— Section 2642(g)(2) of such Code (as so added) shall apply to transfers subject to chapter 11 or 12 of the Internal Revenue Code of 1986 made after December 31, 2000. No implication is intended with respect . to the availability of relief from late elections or the application of a rule of substantial compliance on or before such date. Applicability. 26 USC 2642 note.