Frequently Asked Questions
Who is eligible for the Declaratory Judgment for Gift Valuation?
Only the donor may file after exhausting administrative remedies and within 90 days of the IRS mailing a determination notice.
How does the Declaratory Judgment for Gift Valuation work?
Enables donors to contest an IRS determination regarding the value of a gift by seeking a binding declaration from the Tax Court.
What law authorizes the Declaratory Judgment for Gift Valuation?
The Declaratory Judgment for Gift Valuation is authorized under IRC §7477 of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §7477
Source: Internal Revenue Code, Title 26, United States Code
§ 7477. Declaratory judgments relating to value of certain gifts(a) Creation of remedyIn a case of an actual controversy involving a determination by the Secretary of the value of any gift shown on the return of tax imposed by chapter 12 or disclosed on such return or in any statement attached to such return, upon the filing of an appropriate pleading, the Tax Court may make a declaration of the value of such gift. Any such declaration shall have the force and effect of a decision of the Tax Court and shall be reviewable as such.
(b) Limitations(1) PetitionerA pleading may be filed under this section only by the donor.
(2) Exhaustion of administrative remediesThe court shall not issue a declaratory judgment or decree under this section in any proceeding unless it determines that the petitioner has exhausted all available administrative remedies within the Internal Revenue Service.
(3) Time for bringing actionIf the Secretary sends by certified or registered mail notice of his determination as described in subsection (a) to the petitioner, no proceeding may be initiated under this section unless the pleading is filed before the 91st day after the date of such mailing.
(Added Pub. L. 105–34, title V, § 506(c)(1), Aug. 5, 1997, 111 Stat. 855.)
Editorial Notes
Prior ProvisionsA prior section 7477, added Pub. L. 94–455, title X, § 1042(d)(1), Oct. 4, 1976, 90 Stat. 1637; amended Pub. L. 95–600, title III, § 336(b)(2)(B), Nov. 6, 1978, 92 Stat. 2842, provided for declaratory judgments relating to transfers of property from the United States, prior to repeal by Pub. L. 98–369, div. A, title I, § 131(e)(1), (g), July 18, 1984, 98 Stat. 664, 665, applicable to transfers or exchanges after Dec. 31, 1984, in taxable years ending after such date, with special rules for certain transfers and ruling requests before Mar. 1, 1984.
Statutory Notes and Related Subsidiaries
Effective DateSection applicable to gifts made after Aug. 5, 1997, see section 506(e)(1) of Pub. L. 105–34, set out as an Effective Date of 1997 Amendment note under section 2001 of this title.