I 
111TH CONGRESS 
2D SESSION 
H. R. 5764 
To amend the Internal Revenue Code of 1986 to reinstate estate and 
generation-skipping taxes, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 15, 2010 
Ms. LINDA T. SA´NCHEZ of California (for herself, Ms. WATSON, Ms. NORTON, 
Ms. LEE of California, and Mr. MCGOVERN) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to reinstate 
estate and generation-skipping taxes, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Responsible Estate 
Tax Act’’. 
SEC. 2. REINSTATEMENT AND EXTENSION OF ESTATE AND 
GENERATION-SKIPPING TAXES; REPEAL OF 
CARRYOVER BASIS. 
(a) IN GENERAL.—The following provisions of the 
Economic Growth and Tax Relief Reconciliation Act of 
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2001, and the amendments made by such provisions, are 
hereby repealed: 
(1) Subtitles A and E of title V. 
(2) Subsection (d), and so much of subsection 
(f)(3) as relates to subsection (d), of section 511. 
(3) Paragraph (2) of subsection (b), and para-
graph (2) of subsection (e), of section 521. 
Any provision of the Internal Revenue Code of 1986 
amended by such provisions are amended to read as such 
provisions would read if such sections had never been en-
acted. 
(b) SUNSET NOT TO APPLY.— 
(1) Subsection (a) of section 901 of the Eco-
nomic Growth and Tax Relief Reconciliation Act of 
2001 is amended by striking ‘‘this Act’’ and all that 
follows and inserting ‘‘this Act (other than title V) 
shall not apply to taxable, plan, or limitation years 
beginning after December 31, 2010.’’. 
(2) Subsection (b) of such section 901 is 
amended by striking ‘‘, estates, gifts, and transfers’’. 
SEC. 3. MODIFICATION OF RATES AND MAINTENANCE OF 
UNIFIED CREDIT AGAINST THE ESTATE TAX. 
(a) MODIFICATION OF RATES.— 
(1) IN GENERAL.—The table in paragraph (1) 
of section 2001(c) of the Internal Revenue Code of 
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1986 is amended by striking the last 6 rows and in-
serting the following: 
‘‘Over $750,000 but not over $3,500,000 .............
$248,300 plus 39 per-
cent of the excess of 
such amount over 
$750,000 
Over $3,500,000 but not over $10,000,000 ..........
$1,320,800 plus 45 
percent of the ex-
cess of such amount 
over $3,500,000 
Over $10,000,000 but not over $50,000,000 ........
$4,245,800 plus 50 
percent of the ex-
cess of such amount 
over $10,000,000 
Over $50,000,000 ..................................................
$24,245,800 plus 55 
percent of the ex-
cess of such amount 
over $50,000,000’’. 
(2) SURTAX
ON
WEALTHY
ESTATES.—Para-
graph (2) of section 2011(c) of such Code is amend-
ed to read as follows: 
‘‘(2) SURTAX ON ESTATES OVER $500,000,000.— 
Notwithstanding paragraph (1), if the amount with 
respect to which the tentative tax to be computed is 
over $500,000,000, the rate of tax otherwise in ef-
fect under this subsection with respect to the 
amount in excess of $500,000,000 shall be increased 
by 10 percent.’’. 
(b) MAINTENANCE OF UNIFIED CREDIT.—The table 
in subsection (c) of section 2010 of the Internal Revenue 
Code of 1986 (relating to applicable credit amount) is 
amended by inserting ‘‘and thereafter’’ after ‘‘2009’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2009. 
SEC. 4. MODIFICATION OF RULES FOR VALUE OF CERTAIN 
FARM, ETC., REAL PROPERTY. 
(a) 
IN
GENERAL.—Paragraph 
(2) 
of 
section 
2032A(a) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘$750,000’’ and inserting ‘‘$3,000,000’’. 
(b) INFLATION ADJUSTMENT.—Paragraph (3) of sec-
tion 2032A(a) of such Code is amended— 
(1) by striking ‘‘1998’’ and inserting ‘‘2009’’, 
(2) by striking ‘‘$750,000’’ and inserting 
‘‘$3,000,000’’ in subparagraph (A), and 
(3) by striking ‘‘calendar year 1997’’ and in-
serting ‘‘calendar year 2008’’ in subparagraph (B). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2009. 
SEC. 5. MODIFICATION OF ESTATE TAX RULES WITH RE-
SPECT TO LAND SUBJECT TO CONSERVATION 
EASEMENTS. 
(a) MODIFICATION OF EXCLUSION LIMITATION.— 
The table in paragraph (3) of section 2031(c) of the Inter-
nal Revenue Code of 1986 is amended— 
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(1) by striking ‘‘or thereafter’’ in the last row 
and inserting ‘‘through 2009’’, and 
(2) by adding at the end the following row: 
‘‘2010 and thereafter .............................................
$2,000,000’’. 
(b) MODIFICATION OF APPLICABLE PERCENTAGE.— 
Paragraph (2) of section 2031(c) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘40 percent’’ and 
inserting ‘‘60 percent’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2009. 
SEC. 6. CONSISTENT BASIS REPORTING BETWEEN ESTATE 
AND PERSON ACQUIRING PROPERTY FROM 
DECEDENT. 
(a) INFORMATION REPORTING.— 
(1) IN GENERAL.—Subpart A of part III of 
subchapter A of chapter 61 of the Internal Revenue 
Code of 1986 is amended by inserting after section 
6034A the following new section: 
‘‘SEC. 6035. BASIS INFORMATION TO PERSONS ACQUIRING 
PROPERTY FROM DECEDENT OR BY GIFT. 
‘‘(a) INFORMATION WITH RESPECT TO PROPERTY 
ACQUIRED FROM DECEDENTS.— 
‘‘(1) IN GENERAL.—The executor of any estate 
required to file a return under section 6018(a) shall, 
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on or before the date on which such return was re-
quired to be filed, furnish to the Secretary and to 
each person acquiring property from the decedent a 
statement identifying— 
‘‘(A) the value of such property, 
‘‘(B) in the case of any property to which 
the exclusion under section 2031(c) applies or 
to which section 1014(e) applies, the adjusted 
basis of such property in the hands of the dece-
dent, 
‘‘(C) in the case of any property which 
consists of stock in a DISC or former DISC (as 
defined in section 992(a)), the basis of the de-
cedent in such stock reduced by the amount (if 
any) which would have been included in gross 
income under section 995(c) as a dividend if the 
decedent had lived and sold the stock at its fair 
market value on the estate tax valuation date 
(determined 
under 
the 
rules 
of 
section 
1014(d)), and 
‘‘(D) such other information with respect 
to such property as the Secretary may pre-
scribe. 
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‘‘(2) VALUE.—For purposes of this subsection, 
the value of any property shall be determined under 
the rules of section 1014(a). 
‘‘(b) INFORMATION WITH RESPECT TO PROPERTY 
ACQUIRED BY GIFT.—The person who makes a transfer 
by gift and who is required to file a return under section 
6019(a) shall, on or before the date on which such return 
is required to be filed, furnish to the Secretary and to each 
person acquiring property though such transfer a state-
ment identifying— 
‘‘(1) the adjusted basis of such property, 
‘‘(2) the fair market value of such property at 
the time of the transfer, 
‘‘(3) in the case of a transfer in trust, the 
amount of the gain or loss recognized by the grantor 
on such transfer, 
‘‘(4) the amount, if any, of gift tax paid by the 
transferor, and 
‘‘(5) such other information with respect to 
such property as the Secretary may prescribe. 
‘‘(c) REGULATIONS.—The Secretary shall prescribe 
such regulations as necessary to carry out this section, in-
cluding regulations relating to— 
‘‘(1) the application of this section to situations 
in which no estate tax return is required to be filed 
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or in which gifts are excluded from gift tax under 
section 2503, 
‘‘(2) situations in which the surviving joint ten-
ant or other recipient may have better information 
than the executor, and 
‘‘(3) the timing of the required reporting in the 
event of adjustments to the reported value subse-
quent to the filing of an estate or gift tax return.’’. 
(2) PENALTY FOR FAILURE TO FILE.— 
(A) RETURN.—Subparagraph (B) of sec-
tion 6724(d)(1) of the Internal Revenue Code 
of 1986 is amended by striking ‘‘or’’ at the end 
of clause (xxiv), by striking ‘‘and’’ at the end 
of clause (xxv) and inserting ‘‘or’’, and by add-
ing at the end the following new clause: 
‘‘(xxvi) section 6035 (relating to re-
turns relating to basis information to per-
sons acquiring property from decedent), 
and’’. 
(B) STATEMENT.—Subparagraph (A) of 
section 6724(d)(2)(A) of such Code is amended 
by inserting ‘‘6035,’’ after ‘‘6034A,’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions for subpart A of part III of subchapter A of 
chapter 61 of the Internal Revenue Code of 1986 is 
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amended by inserting after the item relating to sec-
tion 6034A the following new item: 
‘‘Sec. 6035. Basis information to persons acquiring property from decedent or 
by gift.’’. 
(b) CONSISTENT USE OF BASIS.— 
(1) PROPERTY
ACQUIRED
FROM
A
DESCEND-
ANT.—Section 1014 of the Internal Revenue Code of 
1986 is amended by adding at the end the following 
new subsection: 
‘‘(f) BASIS MUST BE CONSISTENT WITH INFORMA-
TION REPORTS.—Except as provided by the Secretary in 
regulations, in any case in which the executor of the estate 
was required to make a return under section 6035, the 
basis of the property in the hands of the person acquiring 
such property shall be calculated using the information re-
ported to such person under section 6035(a).’’. 
(2) PROPERTY
ACQUIRED
BY
GIFTS
AND 
TRANSFERS IN TRUST.—Section 1015 of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new subsection: 
‘‘(f) BASIS MUST BE CONSISTENT WITH INFORMA-
TION REPORTS.—Except as provided by the Secretary in 
regulations, in any case in which the transferor was re-
quired to make a return under section 6035, the basis of 
the property in the hands of the person acquiring such 
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property shall be calculated using the information reported 
to such person under section 6035(b).’’. 
(c) PENALTY FOR INCONSISTENT REPORTING.— 
(1) IN
GENERAL.—Subsection (b) of section 
6662 of the Internal Revenue Code of 1986 is 
amended by inserting after paragraph (7) the fol-
lowing new paragraph: 
‘‘(8) Any inconsistent estate or gift basis re-
porting.’’. 
(2) INCONSISTENT BASIS REPORTING.—Section 
6662 of such Code is amended by adding at the end 
the following new subsection: 
‘‘(k) INCONSISTENT ESTATE OR GIFT BASIS RE-
PORTING.—For purposes of this section, the term ‘incon-
sistent estate or gift basis reporting’ means the portion 
of the understatement which is attributable to the failure 
by the taxpayer to use the information reported to such 
taxpayer under section 6035 in calculating the basis of 
any property acquired from a decedent or by gift or trans-
fer in trust.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transfers for which returns are 
filed after the date of the enactment of this Act. 
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