Collapse to view only § 6161. Extension of time for paying tax
- § 6161. Extension of time for paying tax
- [§ 6162. Repealed.
- § 6163. Extension of time for payment of estate tax on value of reversionary or remainder interest in property
- § 6164. Extension of time for payment of taxes by corporations expecting carrybacks
- § 6165. Bonds where time to pay tax or deficiency has been extended
- § 6166. Extension of time for payment of estate tax where estate consists largely of interest in closely held business
- [§ 6166A. Repealed.
- § 6167. Extension of time for payment of tax attributable to recovery of foreign expropriation losses
§ 6161. Extension of time for paying tax
(a) Amount determined by taxpayer on return
(1) General rule
(2) Estate tax
The Secretary may, for reasonable cause, extend the time for payment of—
(A) any part of the amount determined by the executor as the tax imposed by chapter 11, or
(B) any part of any installment under section 6166 (including any part of a deficiency prorated to any installment under such section).
for a reasonable period not in excess of 10 years from the date prescribed by section 6151(a) for payment of the tax (or, in the case of an amount referred to in subparagraph (B), if later, not beyond the date which is 12 months after the due date for the last installment).
(b) Amount determined as deficiency
(1) Income, gift, and certain other taxes
(2) Estate tax
(3) No extension for certain deficiencies
(c) Claims in cases under title 11 of the United States Code or in receivership proceedings
(d) Cross references
(1) Period of limitation
(2) Security
(3) Postponement of certain acts
(Aug. 16, 1954, ch. 736, 68A Stat. 762; Pub. L. 85–866, title II, § 206(c), Sept. 2, 1958, 72 Stat. 1684; Pub. L. 91–172, title I, § 101(j)(37), Dec. 30, 1969, 83 Stat. 530; Pub. L. 91–614, title I, § 101(h), Dec. 31, 1970, 84 Stat. 1838; Pub. L. 93–406, title II, § 1016(a)(7), Sept. 2, 1974, 88 Stat. 929; Pub. L. 94–455, title XIII, § 1307(d)(2)(C), title XVI, § 1605(b)(3), title XIX, § 1906(b)(13)(A), title XX, § 2004(c)(1), (2), Oct. 4, 1976, 90 Stat. 1727, 1754, 1834, 1867, 1868; Pub. L. 96–223, title I, § 101(f)(1)(H), Apr. 2, 1980, 94 Stat. 252; Pub. L. 96–589, § 6(i)(8), Dec. 24, 1980, 94 Stat. 3410; Pub. L. 97–34, title IV, § 422(e)(1), Aug. 13, 1981, 95 Stat. 316; Pub. L. 100–418, title I, § 1941(b)(2)(B)(viii), Aug. 23, 1988, 102 Stat. 1323; Pub. L. 107–134, title I, § 112(d)(3), Jan. 23, 2002, 115 Stat. 2435.)
[§ 6162. Repealed. Pub. L. 94–455, title XIX, § 1906(a)(12), Oct. 4, 1976, 90 Stat. 1825]
§ 6163. Extension of time for payment of estate tax on value of reversionary or remainder interest in property
(a) Extension permitted
(b) Extension for reasonable cause
(c) Cross reference
(Aug. 16, 1954, ch. 736, 68A Stat. 763; Pub. L. 85–866, title I, § 66(b)(1), Sept. 2, 1958, 72 Stat. 1658; Pub. L. 88–272, title II, § 240(a), Feb. 26, 1964, 78 Stat. 129; Pub. L. 93–625, § 7(d)(1), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), title XX, § 2004(c)(3), Oct. 4, 1976, 90 Stat. 1834, 1868.)
§ 6164. Extension of time for payment of taxes by corporations expecting carrybacks
(a) In general
(b) Contents of statement
The statement shall be filed at such time and in such manner and form as the Secretary may by regulations prescribe. Such statement shall set forth that the corporation expects to have a net operating loss carryback, as provided in section 172(b), from the taxable year in which such statement is made, and shall set forth, in such detail and with such supporting data and explanation as such regulations shall require—
(1) the estimated amount of the expected net operating loss;
(2) the reasons, facts, and circumstances which cause the corporation to expect such net operating loss;
(3) the amount of the reduction of the tax previously determined attributable to the expected carryback, such tax previously determined being ascertained in accordance with the method prescribed in section 1314(a); and such reduction being determined by applying the expected carryback in the manner provided by law to the items on the basis of which such tax was determined;
(4) the tax and the part thereof the time for payment of which is to be extended; and
(5) such other information for purposes of carrying out the provisions of this section as may be required by such regulations.
The Secretary shall, upon request, furnish a receipt for any statement filed, which shall set forth the date of such filing.
(c) Amount to which extension relates and installment payments
(d) Period of extension
The extension of time for payment provided in this section shall expire—
(1) on the last day of the month in which falls the last date prescribed by law (including any extension of time granted the taxpayer) for the filing of the return for the taxable year of the expected net operating loss, or
(2) if an application for tentative carryback adjustment provided in section 6411 with respect to such loss is filed before the expiration of the period prescribed in paragraph (1), on the date on which notice is mailed by certified mail or registered mail by the Secretary to the taxpayer that such application is allowed or disallowed in whole or in part.
(e) Revised statements
(f) Termination
(g) Payments on termination
If an extension of time is terminated under subsection (e) or (f) with respect to any amount, then—
(1) no further extension of time shall be made under this section with respect to such amount, and
(2) the time for payment of such amount shall be considered to be the date on which payment would have been required if there had been no extension with respect to such amount.
(h) Jeopardy
(i) Consolidated returns
(Aug. 16, 1954, ch. 736, 68A Stat. 764; Pub. L. 85–866, title I, § 89(b), Sept. 2, 1958, 72 Stat. 1665; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title II, § 234(b)(2)(C), Sept. 3, 1982, 96 Stat. 503.)
§ 6165. Bonds where time to pay tax or deficiency has been extended
In the event the Secretary grants any extension of time within which to pay any tax or any deficiency therein, the Secretary may require the taxpayer to furnish a bond in such amount (not exceeding double the amount with respect to which the extension is granted) conditioned upon the payment of the amount extended in accordance with the terms of such extension.
(Aug. 16, 1954, ch. 736, 68A Stat. 766; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
§ 6166. Extension of time for payment of estate tax where estate consists largely of interest in closely held business
(a) 5-year deferral; 10-year installment payment
(1) In general
(2) LimitationThe maximum amount of tax which may be paid in installments under this subsection shall be an amount which bears the same ratio to the tax imposed by section 2001 (reduced by the credits against such tax) as—
(A) the closely held business amount, bears to
(B) the amount of the adjusted gross estate.
(3) Date for payment of installments
(b) Definitions and special rules
(1) Interest in closely held businessFor purposes of this section, the term “interest in a closely held business” means—
(A) an interest as a proprietor in a trade or business carried on as a proprietorship;
(B) an interest as a partner in a partnership carrying on a trade or business, if—
(i) 20 percent or more of the total capital interest in such partnership is included in determining the gross estate of the decedent, or
(ii) such partnership had 45 or fewer partners; or
(C) stock in a corporation carrying on a trade or business if—
(i) 20 percent or more in value of the voting stock of such corporation is included in determining the gross estate of the decedent, or
(ii) such corporation had 45 or fewer shareholders.
(2) Rules for applying paragraph (1)For purposes of paragraph (1)—
(A) Time for testing
(B) Certain interests held by husband and wifeStock or a partnership interest which—
(i) is community property of a husband and wife (or the income from which is community income) under the applicable community property law of a State, or
(ii) is held by a husband and wife as joint tenants, tenants by the entirety, or tenants in common,
shall be treated as owned by one shareholder or one partner, as the case may be.
(C) Indirect ownership
(D) Certain interests held by members of decedent’s family
(3) Farmhouses and certain other structures taken into account
(4) Value
(5) Closely held business amount
(6) Adjusted gross estate
(7) Partnership interests and stock which is not readily tradable
(A) In generalIf the executor elects the benefits of this paragraph (at such time and in such manner as the Secretary shall by regulations prescribe), then—
(i) for purposes of paragraph (1)(B)(i) or (1)(C)(i) (whichever is appropriate) and for purposes of subsection (c), any capital interest in a partnership and any non-readily-tradable stock which (after the application of paragraph (2)) is treated as owned by the decedent shall be treated as included in determining the value of the decedent’s gross estate,
(ii) the executor shall be treated as having selected under subsection (a)(3) the date prescribed by section 6151(a), and
(iii) for purposes of applying section 6601(j), the 2-percent portion (as defined in such section) shall be treated as being zero.
(B) Non-readily-tradable stock defined
(8) Stock in holding company treated as business company stock in certain cases
(A) In generalIf the executor elects the benefits of this paragraph, then—
(i) Holding company stock treated as business company stock
(ii) 5-year deferral for principal not to apply
(iii) 2-percent interest rate not to apply
(B) All stock must be non-readily-tradable stock
(i) In general
(ii) Special application where only holding company stock is non-readily-tradable stock
(C) Application of voting stock requirement of paragraph (1)(C)(i)
(D) DefinitionsFor purposes of this paragraph—
(i) Holding company
(ii) Business company
(9) Deferral not available for passive assets
(A) In general
(B) Passive asset definedFor purposes of this paragraph—
(i) In general
(ii) Stock treated as passive assetThe term “passive asset” includes any stock in another corporation unless—(I) such stock is treated as held by the decedent by reason of an election under paragraph (8), and(II) such stock qualified under subsection (a)(1).
(iii) Exception for active corporationsIf—(I) a corporation owns 20 percent or more in value of the voting stock of another corporation, or such other corporation has 45 or fewer shareholders, and(II) 80 percent or more of the value of the assets of each such corporation is attributable to assets used in carrying on a trade or business,
then such corporations shall be treated as 1 corporation for purposes of clause (ii). For purposes of applying subclause (II) to the corporation holding the stock of the other corporation, such stock shall not be taken into account.
(10) Stock in qualifying lending and finance business treated as stock in an active trade or business company
(A) In generalIf the executor elects the benefits of this paragraph, then—
(i) Stock in qualifying lending and finance business treated as stock in an active trade or business company
(ii) 5-year deferral for principal not to apply
(iii) 5 equal installments allowed
(B) DefinitionsFor purposes of this paragraph—
(i) Qualifying lending and finance businessThe term “qualifying lending and finance business” means a lending and finance business, if—(I) based on all the facts and circumstances immediately before the date of the decedent’s death, there was substantial activity with respect to the lending and finance business, or(II) during at least 3 of the 5 taxable years ending before the date of the decedent’s death, such business had at least 1 full-time employee substantially all of whose services were the active management of such business, 10 full-time, nonowner employees substantially all of whose services were directly related to such business, and $5,000,000 in gross receipts from activities described in clause (ii).
(ii) Lending and finance businessThe term “lending and finance business” means a trade or business of—(I) making loans,(II) purchasing or discounting accounts receivable, notes, or installment obligations,(III) engaging in rental and leasing of real and tangible personal property, including entering into leases and purchasing, servicing, and disposing of leases and leased assets,(IV) rendering services or making facilities available in the ordinary course of a lending or finance business, and(V) rendering services or making facilities available in connection with activities described in subclauses (I) through (IV) carried on by the corporation rendering services or making facilities available, or another corporation which is a member of the same affiliated group (as defined in section 1504 without regard to section 1504(b)(3)).
(iii) Limitation
(c) Special rule for interest in 2 or more closely held businesses
(d) Election
(e) Proration of deficiency to installments
(f) Time for payment of interestIf the time for payment of any amount of tax has been extended under this section—
(1) Interest for first 5 years
(2) Interest for periods after first 5 years
(3) Interest in the case of certain deficiencies
(4) Selection of shorter period
(g) Acceleration of payment
(1) Disposition of interest; withdrawal of funds from business
(A) If—
(i)(I) any portion of an interest in a closely held business which qualifies under subsection (a)(1) is distributed, sold, exchanged, or otherwise disposed of, or(II) money and other property attributable to such an interest is withdrawn from such trade or business, and
(ii) the aggregate of such distributions, sales, exchanges, or other dispositions and withdrawals equals or exceeds 50 percent of the value of such interest,
then the extension of time for payment of tax provided in subsection (a) shall cease to apply, and the unpaid portion of the tax payable in installments shall be paid upon notice and demand from the Secretary.
(B) In the case of a distribution in redemption of stock to which section 303 (or so much of section 304 as relates to section 303) applies—
(i) the redemption of such stock, and the withdrawal of money and other property distributed in such redemption, shall not be treated as a distribution or withdrawal for purposes of subparagraph (A), and
(ii) for purposes of subparagraph (A), the value of the interest in the closely held business shall be considered to be such value reduced by the value of the stock redeemed.
This subparagraph shall apply only if, on or before the date prescribed by subsection (a)(3) for the payment of the first installment which becomes due after the date of the distribution (or, if earlier, on or before the day which is 1 year after the date of the distribution), there is paid an amount of the tax imposed by section 2001 not less than the amount of money and other property distributed.
(C) Subparagraph (A)(i) does not apply to an exchange of stock pursuant to a plan of reorganization described in subparagraph (D), (E), or (F) of section 368(a)(1) nor to an exchange to which section 355 (or so much of section 356 as relates to section 355) applies; but any stock received in such an exchange shall be treated for purposes of subparagraph (A)(i) as an interest qualifying under subsection (a)(1).
(D) Subparagraph (A)(i) does not apply to a transfer of property of the decedent to a person entitled by reason of the decedent’s death to receive such property under the decedent’s will, the applicable law of descent and distribution, or a trust created by the decedent. A similar rule shall apply in the case of a series of subsequent transfers of the property by reason of death so long as each transfer is to a member of the family (within the meaning of section 267(c)(4)) of the transferor in such transfer.
(E) Changes in interest in holding companyIf any stock in a holding company is treated as stock in a business company by reason of subsection (b)(8)(A)—
(i) any disposition of any interest in such stock in such holding company which was included in determining the gross estate of the decedent, or
(ii) any withdrawal of any money or other property from such holding company attributable to any interest included in determining the gross estate of the decedent,
shall be treated for purposes of subparagraph (A) as a disposition of (or a withdrawal with respect to) the stock qualifying under subsection (a)(1).
(F) Changes in interest in business companyIf any stock in a holding company is treated as stock in a business company by reason of subsection (b)(8)(A)—
(i) any disposition of any interest in such stock in the business company by such holding company, or
(ii) any withdrawal of any money or other property from such business company attributable to such stock by such holding company owning such stock,
shall be treated for purposes of subparagraph (A) as a disposition of (or a withdrawal with respect to) the stock qualifying under subsection (a)(1).
(2) Undistributed income of estate
(A) If an election is made under this section and the estate has undistributed net income for any taxable year ending on or after the due date for the first installment, the executor shall, on or before the date prescribed by law for filing the income tax return for such taxable year (including extensions thereof), pay an amount equal to such undistributed net income in liquidation of the unpaid portion of the tax payable in installments.
(B) For purposes of subparagraph (A), the undistributed net income of the estate for any taxable year is the amount by which the distributable net income of the estate for such taxable year (as defined in section 643) exceeds the sum of—
(i) the amounts for such taxable year specified in paragraphs (1) and (2) of section 661(a) (relating to deductions for distributions, etc.);
(ii) the amount of tax imposed for the taxable year on the estate under chapter 1; and
(iii) the amount of the tax imposed by section 2001 (including interest) paid by the executor during the taxable year (other than any amount paid pursuant to this paragraph).
(C) For purposes of this paragraph, if any stock in a corporation is treated as stock in another corporation by reason of subsection (b)(8)(A), any dividends paid by such other corporation to the corporation shall be treated as paid to the estate of the decedent to the extent attributable to the stock qualifying under subsection (a)(1).
(3) Failure to make payment of principal or interest
(A) In general
(B) Payment within 6 monthsIf any payment of principal or interest under this section is not paid on or before the date determined under subparagraph (A) but is paid within 6 months of such date—
(i) the provisions of subparagraph (A) shall not apply with respect to such payment,
(ii) the provisions of section 6601(j) shall not apply with respect to the determination of interest on such payment, and
(iii) there is imposed a penalty in an amount equal to the product of—(I) 5 percent of the amount of such payment, multiplied by(II) the number of months (or fractions thereof) after such date and before payment is made.
The penalty imposed under clause (iii) shall be treated in the same manner as a penalty imposed under subchapter B of chapter 68.
(h) Election in case of certain deficiencies
(1) In generalIf—
(A) a deficiency in the tax imposed by section 2001 is assessed,
(B) the estate qualifies under subsection (a)(1), and
(C) the executor has not made an election under subsection (a),
the executor may elect to pay the deficiency in installments. This subsection shall not apply if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax.
(2) Time of election
(3) Effect of election on payment
(i) Special rule for certain direct skips
(j) Regulations
(k) Cross references
(1) Security
(2) Lien
(3) Period of limitation
(4) Interest
(5) Transfers within 3 years of death
(Added Pub. L. 94–455, title XX, § 2004(a), Oct. 4, 1976, 90 Stat. 1862; amended Pub. L. 95–600, title V, § 512(a), (b), Nov. 6, 1978, 92 Stat. 2882, 2883; Pub. L. 97–34, title IV, § 422(a), (c), (e)(5)(A), (B), Aug. 13, 1981, 95 Stat. 314–316; Pub. L. 97–448, title I, § 104(c), (d)(1)(B), Jan. 12, 1983, 96 Stat. 2382, 2383; Pub. L. 98–369, div. A, title V, § 544(b)(4), title X, § 1021(a)–(d), July 18, 1984, 98 Stat. 894, 1024–1026; Pub. L. 99–514, title XIV, § 1432(e), Oct. 22, 1986, 100 Stat. 2730; Pub. L. 104–188, title I, § 1704(t)(15), Aug. 20, 1996, 110 Stat. 1888; Pub. L. 105–34, title V, § 503(c)(1), Aug. 5, 1997, 111 Stat. 853; Pub. L. 105–206, title VI, § 6007(c), July 22, 1998, 112 Stat. 809; Pub. L. 106–554, § 1(a)(7) [title III, § 319(18)], Dec. 21, 2000, 114 Stat. 2763, 2763A–647; Pub. L. 107–16, title V, §§ 571(a), 572(a), 573(a), June 7, 2001, 115 Stat. 92, 93.)
[§ 6166A. Repealed. Pub. L. 97–34, title IV, § 422(d), Aug. 13, 1981, 95 Stat. 315]
§ 6167. Extension of time for payment of tax attributable to recovery of foreign expropriation losses
(a) Extension allowed by electionIf—
(1) a corporation has a recovery of a foreign expropriation loss to which section 1351 applies, and
(2) the portion of the recovery received in money is less than 25 percent of the amount of such recovery (as defined in section 1351(c)) and is not greater than the tax attributable to such recovery,
the tax attributable to such recovery shall, at the election of the taxpayer, be payable in 10 equal installments on the 15th day of the fourth month of each of the taxable years following the taxable year of the recovery. Such election shall be made at such time and in such manner as the Secretary may prescribe by regulations. If an election is made under this subsection, the provisions of this subtitle shall apply as though the Secretary were extending the time for payment of such tax.
(b) Extension permitted by Secretary
(c) Acceleration of paymentsIf—
(1) an election is made under subsection (a),
(2) during any taxable year before the tax attributable to such recovery is paid in full—
(A) any property (other than money) received on such recovery is sold or exchanged, or
(B) any property (other than money) received on any sale or exchange described in subparagraph (A) is sold or exchanged, and
(3) the amount of money received on such sale or exchange (reduced by the amount of the tax imposed under chapter 1 with respect to such sale or exchange), when added to the amount of money—
(A) received on such recovery, and
(B) received on previous sales or exchanges described in subparagraphs (A) and (B) of paragraph (2) (as so reduced),
exceeds the amount of money which may be received under subsection (a)(2),
an amount of the tax attributable to such recovery equal to such excess shall be payable on the 15th day of the fourth month of the taxable year following the taxable year in which such sale or exchange occurs. The amount of such tax so paid shall be treated, for purposes of this section, as a payment of the first unpaid installment or installments (or portion thereof) which become payable under subsection (a) following such taxable year.
(d) Proration of deficiency to installments
(e) Time for payment of interest
(f) Tax attributable to recovery of foreign expropriation lossFor purposes of this section, the tax attributable to a recovery of a foreign expropriation loss is the sum of—
(1) the additional tax imposed by section 1351(d)(1) on such recovery, and
(2) the amount by which the tax imposed under subtitle A is increased by reason of the gain on such recovery which under section 1351(e) is considered as gain on the involuntary conversion of property.
(g) Failure to pay installment
(h) Cross-references
(1) Security.—For authority of the Secretary to require security in the case of an extension under this section, see section 6165.
(2) Period of limitation.—For extension of the period of limitation in the case of an extension under this section, see section 6503(e).
(Added Pub. L. 89–384, § 1(d), Apr. 8, 1966, 80 Stat. 102; amended Pub. L. 93–625, § 7(d)(2), (3), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94–455, title XIX, §§ 1902(b)(2)(B), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1806, 1834; Pub. L. 114–41, title II, § 2006(a)(2)(D), July 31, 2015, 129 Stat. 457.)