This Act may be cited as the Grave Injustice Parity Act.

(a) Estates Section 2055(a) of the Internal Revenue Code of 1986 is amended by striking or at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting; or, and by inserting after paragraph (5) the following new paragraph: (6) to a cemetery company owned and operated exclusively for the benefit of its members, or any corporation chartered solely for burial purposes as a cemetery corporation and not permitted by its charter to engage in any business not necessarily incident to that purpose, if such company or corporation is not operated for profit and no part of the net earnings of such company or corporation inures to the benefit of any private shareholder or individual.. (b) Gifts (1) Residents Section 2522(a) of the Internal Revenue Code of 1986 is amended by striking the period at the end of paragraph (4) and inserting; or, and by inserting after paragraph (4) the following new paragraph: (5) a cemetery company owned and operated exclusively for the benefit of its members, or any corporation chartered solely for burial purposes as a cemetery corporation and not permitted by its charter to engage in any business not necessarily incident to that purpose, if such company or corporation is not operated for profit and no part of the net earnings of such company or corporation inures to the benefit of any private shareholder or individual.. (2) Nonresidents Section 2522(b) of the Internal Revenue Code of 1986 is amended by striking the period at the end of paragraph (5) and inserting; or, and by inserting after paragraph (5) the following new paragraph: (6) a cemetery company owned and operated exclusively for the benefit of its members, or any corporation chartered solely for burial purposes as a cemetery corporation and not permitted by its charter to engage in any business not necessarily incident to that purpose, if such company or corporation is not operated for profit and no part of the net earnings of such company or corporation inures to the benefit of any private shareholder or individual.. (c) Effective date The amendments made by this section shall apply with respect to taxable years beginning after the date of enactment of this Act.

(a) Taxes on failure To distribute income Section 4942(g)(1)(A) of the Internal Revenue Code of 1986 is amended by inserting to a cemetery company described in section 170(c)(5) or after paid. (b) Taxes on taxable expenditures Section 4945(d)(4)(A) is amended by striking or at the end of clause (ii) and by adding at the end the following new clause: (iv) is a cemetery company described in section 170(c)(5), or. (c) Effective date The amendments made by this section shall apply with respect to distributions made after the date of the enactment of this Act.