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‘‘(2) AUTHORITY
OF
THE
SECRETARY.—For
purposes of examining the correctness of the initial
basis of any property with respect to which an ex-
ecutor has made a request under paragraph (1), the
Secretary shall have the same authority as if he
were determining the liability of any person for a tax
imposed by this title.
‘‘(b) JUDICIAL REVIEW.—
‘‘(1) BRINGING
OF
ACTION.—If the executor
and the Secretary have not entered into an agree-
ment described in subsection (c)(2) with respect to
any property for which a request has been made
under subsection (a)(1), the executor may bring an
action in the Tax Court with respect to such prop-
erty.
‘‘(2) DECLARATION BY TAX COURT.—Upon the
filing of an appropriate pleading in an action
brought under paragraph (1), the Tax Court may
make a declaration of the initial basis of the prop-
erty with respect to which such an action is brought.
Any such declaration shall be final and conclusive
and shall not be reviewed by any other court.
‘‘(3) TIME FOR BRINGING ACTION.—No action
may be brought under this subsection with respect
to any property unless the pleading is filed—
126
‘‘(A) after the expiration of 1 year after
the date on which the executor made a request
under subsection (a)(1) with respect to such
property, and
‘‘(B) before the 91st day after the later
of—
‘‘(i) the day on which the Secretary
sends by certified or registered mail a noti-
fication of his disagreement with the initial
basis of the property shown on the return
of the tax imposed by chapter 11, or
‘‘(ii) the expiration of the 1-year pe-
riod referred to in subparagraph (A).
‘‘(c) BINDING EFFECT OF DETERMINATIONS.—
‘‘(1) NO NOTICE FROM SECRETARY.—If—
‘‘(A) an executor makes a request under
subsection (a)(1) with respect to the initial
basis of any property, and
‘‘(B) before the date 3 years after the day
on which such request is made, the Secretary
does not send to the executor by certified or
registered mail notice of his disagreement with
the initial basis of such property shown on the
return of the tax imposed by chapter 11,
127
then the initial basis so shown shall be binding and
conclusive on the Secretary and on any person whose
basis in such property is affected by such initial
basis unless any such person establishes a different
initial basis to the satisfaction of the Secretary.
‘‘(2) AGREEMENT BETWEEN SECRETARY AND
EXECUTOR.—If the executor and the Secretary sign
a written agreement as to the initial basis of any
property with respect to which the executor made a
request under subsection (a)(1), such agreement
shall be binding and conclusive on the Secretary and
on any person whose basis in such property is af-
fected by the initial basis in the same manner as if
such agreement were a closing agreement under sec-
tion 7121 between the Secretary and such person.
‘‘(3) TAX
COURT
DECISION
BINDING
ON
HEIRS.—Any declaration of the initial basis of any
property made by the Tax Court which has become
final shall also be binding on any person whose basis
in the property is affected by the initial basis.
‘‘(d) INTERVENTION.—Any person whose basis in any
property is affected by the initial basis of any property
shall be allowed to intervene in any administrative or judi-
cial proceeding under this section with respect to such
property.
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‘‘(e) DEFINITIONS.—
‘‘(1) IN GENERAL.—Terms used in this section
which are also used in section 1022 shall have the
meanings as when used in section 1022.
‘‘(2) ESTATES NOT REQUIRED TO FILE ESTATE
TAX RETURNS.—In the case of any estate with re-
spect to which a return of the tax imposed by chap-
ter 11 is not required, any reference in this section
or in section 1022 to such a return shall be treated
as a reference to a return required under section
6039F(a).’’
(2) COMMISSIONERS.—Subsection (c) of section
7456 (relating to Tax Court commissioners) is
amended by striking out ‘‘and 7478’’ and inserting
in lieu thereof ‘‘7478, and 7479’’.
(e) INFORMATION RETURNS; ASSESSABLE PENALTY
FOR NEGLIGENT OR FRAUDULENT OVERSTATEMENT OF
INITIAL BASIS; PENALTIES FOR FAILURE TO FURNISH
INFORMATION.—
(1) INFORMATION
RETURNS.—Subpart A of
part III of subchapter A of chapter 61 (relating to
information concerning persons subject to special
provisions) is amended by adding after section
6039E the following new section: