124 STAT. 3303 PUBLIC LAW 111–312—DEC. 17, 2010 amount in subparagraph (A) shall be increased by an amount equal to— ‘‘(i) such dollar amount, multiplied by ‘‘(ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by sub- stituting ‘calendar year 2010’ for ‘calendar year 1992’ in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000. ‘‘(4) DECEASED SPOUSAL UNUSED EXCLUSION AMOUNT.—For purposes of this subsection, with respect to a surviving spouse of a deceased spouse dying after December 31, 2010, the term ‘deceased spousal unused exclusion amount’ means the lesser of— ‘‘(A) the basic exclusion amount, or ‘‘(B) the excess of— ‘‘(i) the basic exclusion amount of the last such deceased spouse of such surviving spouse, over ‘‘(ii) the amount with respect to which the tentative tax is determined under section 2001(b)(1) on the estate of such deceased spouse. ‘‘(5) SPECIAL RULES.— ‘‘(A) ELECTION REQUIRED.—A deceased spousal unused exclusion amount may not be taken into account by a surviving spouse under paragraph (2) unless the executor of the estate of the deceased spouse files an estate tax return on which such amount is computed and makes an election on such return that such amount may be so taken into account. Such election, once made, shall be irrevocable. No election may be made under this subpara- graph if such return is filed after the time prescribed by law (including extensions) for filing such return. ‘‘(B) EXAMINATION OF PRIOR RETURNS AFTER EXPIRATION OF PERIOD OF LIMITATIONS WITH RESPECT TO DECEASED SPOUSAL UNUSED EXCLUSION AMOUNT.—Notwithstanding any period of limitation in section 6501, after the time has expired under section 6501 within which a tax may be assessed under chapter 11 or 12 with respect to a deceased spousal unused exclusion amount, the Secretary may examine a return of the deceased spouse to make determinations with respect to such amount for purposes of carrying out this subsection. ‘‘(6) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out this subsection.’’. (b) CONFORMING AMENDMENTS.— (1) Paragraph (1) of section 2505(a), as amended by section 302(b)(1), is amended to read as follows: ‘‘(1) the applicable credit amount in effect under section 2010(c) which would apply if the donor died as of the end of the calendar year, reduced by’’. (2) Section 2631(c) is amended by striking ‘‘the applicable exclusion amount’’ and inserting ‘‘the basic exclusion amount’’. (3) Section 6018(a)(1) is amended by striking ‘‘applicable exclusion amount’’ and inserting ‘‘basic exclusion amount’’. (c) EFFECTIVE DATES.— Applicability. 26 USC 2010 note. 26 USC 2505.
