When the legislation was enacted in 2001 repealing the federal estate tax after 2009 and implementing a carryover basis regime starting in 2010,1 with the federal estate tax and new basis at death returning after December 31, 2010,2 few apparently thought that the one-year gap would actually become operative with a carryover basis for one year.3 Among other factors was the bizarre situation of a new income tax basis before 2010 and after 2010 with a carryover basis for one year. Actually, the probabilities appear to be good for the Congress to enact and the President to sign legislation yet this year making the federal estate tax effective, retroactive for deaths after December 31, 20094 which would repeal carryover basis and set the applicable exclusion amount at $3.5 million with a 45 percent tax rate, the same as was in effect for deaths in 2009.