; and (D) in paragraph (1) of subsection (c), as redesignated by subparagraph (B), by striking estate tax return and inserting estate or gift tax return . (2) Clerical amendment The table of sections for subpart A of part III of subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by striking the item relating to section 6035 and inserting the following: Sec. 6035. Basis information to persons acquiring property from decedent or by gift. . (c) Penalty for inconsistent reporting (1) In general Paragraph (8) of section 6662(b) of the Internal Revenue Code of 1986 is amended by inserting or gift after estate . (2) Inconsistent basis reporting Subsection (k) of section 6662 of such Code is amended to read as follows: (k) Inconsistent estate or gift basis reporting For purposes of this section, there is an inconsistent estate or gift basis if— (1) in the case of property acquired from a decedent, the basis of property claimed on a return exceeds the basis as determined under section 1014(f), and (2) in the case of property acquired by gift, the basis of property claimed on a return exceeds the basis as determined under section 1015(f). . (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. 6. Valuation rules for certain transfers of nonbusiness assets