US (United States) Code. Title 26. Subtitle F: Procedure and Administration. Chapter 62: Time and place

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Internal revenue code. Paying tax

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26 USC CHAPTER 62 - TIME AND PLACE FOR PAYING TAX 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

-HEAD-

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

-MISC1-

Subchapter Sec.(!1)

A. Place and due date for payment of tax 6151

B. Extensions of time for payment 6161

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 6601, 7801 of this title.

-FOOTNOTE-

(!1) Section numbers editorially supplied.

-End-

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26 USC Subchapter A - Place and Due Date for Payment of

Tax 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter A - Place and Due Date for Payment of Tax

-HEAD-

SUBCHAPTER A - PLACE AND DUE DATE FOR PAYMENT OF TAX

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Sec.

6151. Time and place for paying tax shown on returns.

[6152 to 6154. Repealed.]

6155. Payment on notice and demand.

6156. Installment payments of tax on use of highway motor

vehicles.

6157. Payment of Federal unemployment tax on quarterly or

other time period basis.

[6158. Repealed.]

6159. Agreements for payment of tax liability in

installments.

AMENDMENTS

1990 - Pub. L. 101-508, title XI, Sec. 11801(b)(13), Nov. 5,

1990, 104 Stat. 1388-522, struck out item 6158 "Installment payment

of tax attributable to divestitures pursuant to Bank Holding

Company Act Amendments of 1970".

1988 - Pub. L. 100-647, title VI, Sec. 6234(b)(2), Nov. 10, 1988,

102 Stat. 3736, added item 6159.

1987 - Pub. L. 100-203, title X, Sec. 10301(b)(7), Dec. 22, 1987,

101 Stat. 1330-429, struck out item 6154 "Installment payments of

estimated income tax by corporations".

1986 - Pub. L. 99-514, title XIV, Sec. 1404(c)(4), Oct. 22, 1986,

100 Stat. 2714, struck out item 6152 "Installment payments".

1984 - Pub. L. 98-369, div. A, title IV, Sec. 412(c)(3), July 18,

1984, 98 Stat. 793, struck out item 6153 "Installment payments of

estimated income tax by individuals".

1982 - Pub. L. 97-248, title II, Sec. 280(c)(2)(F), Sept. 3,

1982, 96 Stat. 564, struck out "and civil aircraft" after "motor

vehicles" in item 6156.

1976 - Pub. L. 94-452, Sec. 3(c)(1), Oct. 2, 1976, 90 Stat. 1514,

added item 6158.

1970 - Pub. L. 91-258, title II, Sec. 206(d)(3), May 21, 1970, 84

Stat. 246, inserted "and civil aircraft" in item 6156.

1969 - Pub. L. 91-53, Sec. 2(f)(1), Aug. 7, 1969, 83 Stat. 93,

substituted "Payment of Federal unemployment tax on quarterly or

other time period basis" for "Payment of taxes under provisions of

the Tariff Act" in item 6157.

1961 - Pub. L. 87-61, title II, Sec. 203(c)(3), June 29, 1961, 75

Stat. 126, added item 6156 and redesignated former item 6156 as

6157.

-End-

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26 USC Sec. 6151 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter A - Place and Due Date for Payment of Tax

-HEAD-

Sec. 6151. Time and place for paying tax shown on returns

-STATUTE-

(a) General rule

Except as otherwise provided in this subchapter, when a return of

tax is required under this title or regulations, the person

required to make such return shall, without assessment or notice

and demand from the Secretary, pay such tax to the internal revenue

officer with whom the return is filed, and shall pay such tax at

the time and place fixed for filing the return (determined without

regard to any extension of time for filing the return).

(b) Exceptions

(1) Income tax not computed by taxpayer

If the taxpayer elects under section 6014 not to show the tax

on the return, the amount determined by the Secretary as payable

shall be paid within 30 days after the mailing by the Secretary

to the taxpayer of a notice stating such amount and making demand

therefor.

(2) Use of government depositaries

For authority of the Secretary to require payments to

Government depositaries, see section 6302(c).

(c) Date fixed for payment of tax

In any case in which a tax is required to be paid on or before a

certain date, or within a certain period, any reference in this

title to the date fixed for payment of such tax shall be deemed a

reference to the last day fixed for such payment (determined

without regard to any extension of time for paying the tax.)

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 757; Pub. L. 89-713, Sec. 1(b),

Nov. 2, 1966, 80 Stat. 1108; Pub. L. 94-452, Sec. 3(c)(2), Oct. 2,

1976, 90 Stat. 1514; Pub. L. 94-455, title XIX, Sec.

1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

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AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

Subsec. (a). Pub. L. 94-452 substituted "subchapter," for

"section,".

1966 - Subsec. (a). Pub. L. 89-713 substituted the revenue

officer with whom the return is filed for the principal internal

revenue officer for the internal revenue district in which the

return is required to be filed as the description of the person to

whom the tax is paid.

EFFECTIVE DATE OF 1976 AMENDMENT

Section 3(e) of Pub. L. 94-452, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(1) In general. - The amendments made by this section [enacting

section 6158 of this title and amending this section and sections

6503 and 6601 of this title] shall take effect on October 1, 1977,

with respect to sales after July 7, 1970, in taxable years ending

after July 7, 1970, but only in the case of qualified bank holding

corporations (within the meaning of section 1103(b) of the Internal

Revenue Code of 1986 [formerly I.R.C. 1954], as amended by section

2(a) of this Act).

"(2) Special rule for certifying sales which have already taken

place. - For purposes of section 6158(a) of the Internal Revenue

Code of 1986 (as added by subsection (a) of this section) in the

case of any sale which takes place on or before the 90th day after

the date of the enactment of this Act [Oct. 2, 1976], a

certification by the Federal Reserve Board described in section

6158(a) shall be treated as made before the sale if application for

such certification is made before the close of the 90th day after

the date of the enactment of this Act [Oct. 2, 1976].

"(3) Refund of tax. -

"(A) In general. - If any tax attributable to a sale which

occurred before October 1, 1977, is payable in annual

installments by reason of an election under section 6158(a) of

the Internal Revenue Code of 1986, any portion of such tax for

which the due date of the installment does not occur before

October 1, 1977, shall, on application of the taxpayer, be

treated as an overpayment of tax.

"(B) Interest on overpayments. - For purposes of section

6611(b) in the case of any overpayment attributable to

subparagraph (A), the date of the overpayment shall be the day

which is 6 months after the latest of the following:

"(i) the date on which application for refund or credit of

such overpayment is filed,

"(ii) the due date prescribed by law (determined without

extensions) for filing the return of tax under chapter 1 of the

Internal Revenue Code of 1986 for the taxable year the tax of

which is being refunded or credited, or

"(iii) the date of the enactment of this Act [Oct. 2, 1976].

"(C) Extension of period of limitations. - If any refund or

credit of tax attributable to the application of subparagraph (A)

is prevented at any time before October 1, 1978, by the operation

of any law or rule of law, refund or credit of such overpayment

may, nevertheless, be made or allowed if claim therefor is filed

before October 1, 1978."

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-713 effective Nov. 2, 1966, see section 6

of Pub. L. 89-713, set out as a note under section 6091 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6161, 6166, 6324A of this

title.

-End-

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26 USC [Sec. 6152 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter A - Place and Due Date for Payment of Tax

-HEAD-

[Sec. 6152. Repealed. Pub. L. 99-514, title XIV, Sec. 1404(c)(1),

Oct. 22, 1986, 100 Stat. 2714]

-MISC1-

Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 757; Sept. 1,

1954, ch. 1212, Sec. 3, 68 Stat. 1130; Oct. 4, 1976, Pub. L.

94-455, title XIX, Sec. 1906(a)(9), (b)(13)(A), 90 Stat. 1824,

1834; Sept. 3, 1982, Pub. L. 97-248, title II, Sec. 234(b)(1), 96

Stat. 503, related to installment payments of taxes.

EFFECTIVE DATE OF REPEAL

Repeal applicable to taxable years beginning after Dec. 31, 1986,

see section 1404(d) of Pub. L. 99-514, set out as an Effective Date

of 1986 Amendment note under section 643 of this title.

-End-

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26 USC [Sec. 6153 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter A - Place and Due Date for Payment of Tax

-HEAD-

[Sec. 6153. Repealed. Pub. L. 98-369, div. A, title IV, Sec.

412(a)(3), July 18, 1984, 98 Stat. 792]

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Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 758; Sept. 25,

1962, Pub. L. 87-682, Sec. 1(a)(3), (c), 76 Stat. 575; Dec. 23,

1975, Pub. L. 94-164, Sec. 5(b), 89 Stat. 975; June 30, 1976, Pub.

L. 94-331, Sec. 3(b), 90 Stat. 782; Sept. 3, 1976, Pub. L. 94-396,

Sec. 2(a)(2), 90 Stat. 1201; Sept. 17, 1976, Pub. L. 94-414, Sec.

3(b), 90 Stat. 1273; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec.

1906(b)(13)(A), 90 Stat. 1834; Aug. 13, 1981, Pub. L. 97-34, title

VII, Sec. 725(c)(3), 95 Stat. 346; Sept. 3, 1982, Pub. L. 97-248,

title III, Sec. 328(b)(3), 96 Stat. 618, related to installment

payments of estimated income tax by individuals.

EFFECTIVE DATE OF REPEAL

Repeal applicable with respect to taxable years beginning after

Dec. 31, 1984, see section 414(a)(1) of Pub. L. 98-369, set out as

an Effective Date of 1984 Amendment note under section 6654 of this

title.

-End-

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26 USC [Sec. 6154 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter A - Place and Due Date for Payment of Tax

-HEAD-

[Sec. 6154. Repealed. Pub. L. 100-203, title X, Sec. 10301(b)(1),

Dec. 22, 1987, 101 Stat. 1330-429]

-MISC1-

Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 760; Feb. 26,

1964, Pub. L. 88-272, title I, Sec. 122(a), 78 Stat. 25; Mar. 15,

1966, Pub. L. 89-368, title I, Sec. 104(a), 80 Stat. 64; June 28,

1968, Pub. L. 90-364, title I, Sec. 103(b), 82 Stat. 260; Dec. 23,

1975, Pub. L. 94-164, Sec. 5(c), 89 Stat. 975; June 30, 1976, Pub.

L. 94-331, Sec. 3(c), 90 Stat. 782; Sept. 3, 1976, Pub. L. 94-396,

Sec. 2(a)(3), 90 Stat. 1201; Sept. 17, 1976, Pub. L. 94-414, Sec.

3(c), 90 Stat. 1273; Oct. 4, 1976, Pub. L. 94-455, title IX, Sec.

901(c)(3), title XIX, Sec. 1906(a)(10), (b)(13)(A), 90 Stat. 1607,

1825, 1834; Nov. 6, 1978, Pub. L. 95-600, title III, Sec.

301(b)(20)(A), 92 Stat. 2823; Jan. 12, 1983, Pub. L. 97-448, title

II, Sec. 201(j)(2), 96 Stat. 2396; Oct. 17, 1986, Pub. L. 99-499,

title V, Sec. 516(b)(4)(A), 100 Stat. 1771; Oct. 22, 1986, Pub. L.

99-514, title VII, Sec. 701(d)(1), title XV, Sec. 1542(a), 100

Stat. 2341, 2751; Nov. 10, 1988, Pub. L. 100-647, title I, Secs.

1007(g)(10), 1015(h), 102 Stat. 3435, 3571, related to installment

payments of estimated income tax by corporations.

EFFECTIVE DATE OF REPEAL

Repeal applicable to taxable years beginning after Dec. 31, 1987,

see section 10301(c) of Pub. L. 100-203, set out as an Effective

Date of 1987 Amendment note under section 585 of this title.

-End-

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26 USC Sec. 6155 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter A - Place and Due Date for Payment of Tax

-HEAD-

Sec. 6155. Payment on notice and demand

-STATUTE-

(a) General rule

Upon receipt of notice and demand from the Secretary, there shall

be paid at the place and time stated in such notice the amount of

any tax (including any interest, additional amounts, additions to

tax, and assessable penalties) stated in such notice and demand.

(b) Cross references

(1) For restrictions on assessment and collection of

deficiency assessments of taxes subject to the jurisdiction of

the Tax Court, see sections 6212 and 6213.

(2) For provisions relating to assessment of claims allowed

in a receivership proceeding, see section 6873.

(3) For provisions relating to jeopardy assessments, see

subchapter A of chapter 70.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 760; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-589,

Sec. 6(i)(7), Dec. 24, 1980, 94 Stat. 3410.)

-MISC1-

AMENDMENTS

1980 - Subsec. (b)(2). Pub. L. 96-589 struck out reference to a

bankruptcy proceeding.

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary".

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not

applicable to proceedings under Title 11, Bankruptcy, commenced

before Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as

a note under section 108 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7522 of this title.

-End-

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26 USC Sec. 6156 01/06/03

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TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter A - Place and Due Date for Payment of Tax

-HEAD-

Sec. 6156. Installment payments of tax on use of highway motor

vehicles

-STATUTE-

(a) Privilege to pay tax in installments

If the taxpayer files a return of the tax imposed by section 4481

on or before the date prescribed for the filing of such return, he

may elect to pay the tax shown on such return in equal installments

in accordance with the following table:

The number of

installments

If liability is incurred in - shall be -

July, August, or September 4

October, November, or December 3

January, February, or March 2

(b) Dates for paying installments

In the case of any tax payable in installments by reason of an

election under subsection (a) -

(1) the first installment shall be paid on the date prescribed

for payment of the tax,

(2) the second installment shall be paid on or before the last

day of the third month following the calendar quarter in which

the liability was incurred,

(3) the third installment (if any) shall be paid on or before

the last day of the sixth month following the calendar quarter in

which the liability was incurred, and

(4) the fourth installment (if any) shall be paid on or before

the last day of the ninth month following the calendar quarter in

which the liability was incurred.

(c) Proration of additional tax to installments

If an election has been made under subsection (a) in respect of

tax reported on a return filed by the taxpayer and tax required to

be shown but not shown on such return is assessed before the date

prescribed for payment of the last installment, the additional tax

shall be prorated equally to the installments for which the

election was made. That part of the additional tax so prorated to

any installment the date for payment of which has not arrived shall

be collected at the same time as and as part of such installment.

That part of the additional tax so prorated to any installment the

date for payment of which has arrived shall be paid upon notice and

demand from the Secretary.

(d) Acceleration of payments

If the taxpayer does not pay any installment under this section

on or before the date prescribed for its payment, the whole of the

unpaid tax shall be paid upon notice and demand from the Secretary.

(e) Section inapplicable to certain liabilities

This section shall not apply to any liability for tax incurred in

-

(1) April, May, or June of any year, or

(2) July, August, or September of 2005,.(!1)

-SOURCE-

(Added Pub. L. 87-61, title II, Sec. 203(c)(1), June 29, 1961, 75

Stat. 125; amended Pub. L. 91-258, title II, Sec. 206(b), (d)(2),

May 21, 1970, 84 Stat. 245, 246; Pub. L. 91-605, title III, Sec.

303(a)(10), Dec. 31, 1970, 84 Stat. 1744; Pub. L. 94-280, title

III, Sec. 303(a)(10), May 5, 1976, 90 Stat. 456; Pub. L. 94-455,

title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub.

L. 95-599, title V, Sec. 502(a)(9), Nov. 6, 1978, 92 Stat. 2756;

Pub. L. 97-248, title II, Sec. 280(c)(2)(C)-(E), Sept. 3, 1982, 96

Stat. 564; Pub. L. 97-424, title V, Sec. 516(a)(6), Jan. 6, 1983,

96 Stat. 2183; Pub. L. 100-17, title V, Sec. 502(d)(2), Apr. 2,

1987, 101 Stat. 257; Pub. L. 101-508, title XI, Sec. 11211(f)(2),

Nov. 5, 1990, 104 Stat. 1388-427; Pub. L. 102-240, title VIII, Sec.

8002(c)(2), Dec. 18, 1991, 105 Stat. 2203; Pub. L. 105-178, title

IX, Sec. 9002(a)(2)(B), June 9, 1998, 112 Stat. 500.)

-MISC1-

PRIOR PROVISIONS

A prior section 6156 was renumbered section 6157 of this title

and later repealed by Pub. L. 91-53, Sec. 2(a), Aug. 7, 1969, 83

Stat. 91.

AMENDMENTS

1998 - Subsec. (e)(2). Pub. L. 105-178 substituted "2005" for

"1999".

1991 - Subsec. (e)(2). Pub. L. 102-240 substituted "1999" for

"1995".

1990 - Subsec. (e)(2). Pub. L. 101-508 substituted "1995" for

"1993".

1987 - Subsec. (e)(2). Pub. L. 100-17 substituted "1993" for

"1988".

1983 - Subsec. (e)(2). Pub. L. 97-424 substituted "1988" for

"1984".

1982 - Pub. L. 97-248, Sec. 280(c)(2)(E), struck out "and civil

aircraft" after "motor vehicles" in section catchline.

Subsec. (a). Pub. L. 97-248, Sec. 280(c)(2)(C), struck out "or

4491" after "section 4481".

Subsec. (e)(2). Pub. L. 97-248, Sec. 280(c)(2)(D), struck out "in

the case of the tax imposed by section 4481" at end.

1978 - Subsec. (e)(2). Pub. L. 95-599 substituted "1984" for

"1979".

1976 - Subsecs. (c), (d). Pub. L. 94-455 struck out "or his

delegate" after "Secretary".

Subsec. (e)(2). Pub. L. 94-280 substituted "1979" for "1977".

1970 - Pub. L. 91-258, Sec. 206(d)(2), inserted "civil aircraft"

in section catchline.

Subsec. (a). Pub. L. 91-258, Sec. 206(b)(1), inserted reference

to section 4491.

Subsec. (e)(2). Pub. L. 91-605 substituted "1977" for "1972".

Pub. L. 91-258, Sec. 206(b)(2), inserted ", in the case of the

tax imposed by section 4481".

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-248 applicable with respect to

transportation beginning after Aug. 31, 1982, but inapplicable to

amounts paid on or before such date, see section 280(d) of Pub. L.

97-248, set out as a note under section 4261 of this title.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-258 effective July 1, 1970, see section

211(a) of Pub. L. 91-258, set out as a note under section 4041 of

this title.

EFFECTIVE DATE

Section effective July 1, 1961, see section 208 of Pub. L. 87-61,

set out as an Effective Date of 1961 Amendment note under section

4041 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4481, 6601 of this title.

-FOOTNOTE-

(!1) So in original.

-End-

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26 USC Sec. 6157 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter A - Place and Due Date for Payment of Tax

-HEAD-

Sec. 6157. Payment of Federal unemployment tax on quarterly or

other time period basis

-STATUTE-

(a) General rule

Every person who for the calendar year is an employer (as defined

in section 3306(a)) shall -

(1) if the person is such an employer for the preceding

calendar year (determined by only taking into account wages paid

and employment during such preceding calendar year), compute the

tax imposed by section 3301 for each of the first 3 calendar

quarters in the calendar year on wages paid for services which

respect to which the person is such an employer for such

preceding calendar year (as so determined), and

(2) if the person is not such an employer for the preceding

calendar year with respect to any services (as so determined),

compute the tax imposed by section 3301 on wages paid for

services with respect to which the person is not such an employer

for the preceding calendar year (as so determined) -

(A) for the period beginning with the first day of the

calendar year and ending with the last day of the calendar

quarter (excluding the last calendar quarter) in which such

person becomes such an employer with respect to such services,

and

(B) for the third calendar quarter of such year, if the

period specified in subparagraph (A) includes only the first

two calendar quarters of the calendar year.

The tax for any calendar quarter or other period shall be

computed as provided in subsection (b) and the tax as so computed

shall, except as otherwise provided in subsection (c), be paid in

such manner and at such time as may be provided in regulations

prescribed by the Secretary.

(b) Computation of tax

The tax for any calendar quarter or other period referred to in

paragraph (1) or (2) of subsection (a) shall be computed by

multiplying the amount of wages (as defined in section 3306(b))

paid in such calendar quarter or other period by 0.6 percent. In

the case of wages paid in any calendar quarter or other period

during a calendar year to which paragraph (1) of section 3301

applies, the amount of such wages shall be multiplied by 0.8

percent in lieu of 0.6 percent.

(c) Special rule where accumulated amount does not exceed $100

Nothing in this section shall require the payment of tax with

respect to any calendar quarter or other period if the tax under

section 3301 for such period, plus any unpaid amounts for prior

periods in the calendar year, does not exceed $100.

-SOURCE-

(Added Pub. L. 91-53, Sec. 2(a), Aug. 7, 1969, 83 Stat. 91; amended

Pub. L. 91-373, title I, Sec. 101(b)(1), (2), Aug. 10, 1970, 84

Stat. 696; Pub. L. 92-329, Sec. 2(b), June 30, 1972, 86 Stat. 398;

Pub. L. 94-455, title XIX, Sec. 1906(a)(11), (b)(13)(A), Oct. 4,

1976, 90 Stat. 1825, 1834; Pub. L. 94-566, title I, Sec. 114(b),

title II, Sec. 211(e)(3) [(c)(3)], Oct. 20, 1976, 90 Stat. 2669,

2677; Pub. L. 97-248, title II, Sec. 271(b)(2)(C), (c)(3)(C), Sept.

3, 1982, 96 Stat. 555; Pub. L. 98-76, title II, Sec. 231(b)(1),

Aug. 12, 1983, 97 Stat. 428; Pub. L. 100-647, title VII, Sec.

7106(c)(1), Nov. 10, 1988, 102 Stat. 3773; Pub. L. 101-239, title

VII, Sec. 7841(d)(12), Dec. 19, 1989, 103 Stat. 2428.)

-MISC1-

PRIOR PROVISIONS

A prior section 6157, act Aug. 16, 1954, ch. 736, 68A Stat. 761,

Sec. 6156; renumbered Sec. 6157, June 29, 1961, Pub. L. 87-61,

title II, Sec. 203(c)(1), 75 Stat. 125, made a cross reference

provision for payment of taxes under provisions of the Tariff Act,

prior to repeal by Pub. L. 91-53, Sec. 2(a), Aug. 7, 1969, 83 Stat.

91.

AMENDMENTS

1989 - Subsec. (a). Pub. L. 101-239 substituted "subsection (c)"

for "subsections (c) and (d)" in last sentence.

1988 - Subsec. (d). Pub. L. 100-647 struck out subsec. (d) which

related to quarterly payment of railroad unemployment repayment

tax.

1983 - Subsec. (d). Pub. L. 98-76 added subsec. (d).

1982 - Subsec. (b). Pub. L. 97-248, Sec. 271(c)(3)(C),

substituted "0.6" for "0.5" in two places.

Pub. L. 97-248, Sec. 271(b)(2)(C), substituted "0.8" for "0.7".

1976 - Subsec. (a). Pub. L. 94-566, Sec. 114(b), amended subsec.

(a) generally, changing the general rule covering payment of

Federal unemployment tax on a quarterly or other time period basis

to conform to the altered definitions of employment and wages

pertaining to domestic and agricultural service in section 3306 of

this title.

Pub. L. 94-455, Sec. 1906(a)(11)(B), (b)(13)(A), substituted

"subsection (c)" for "subsections (c) and (d)" and struck out "or

his delegate" after "Secretary".

Subsec. (b). Pub. L. 94-566, Sec. 211(e)(3) [(c)(3)], substituted

"In the case of wages paid in any calendar quarter or other period

during a calendar year to which paragraph (1) of section 3301

applies, the amount of such wages shall be multiplied by 0.7

percent in lieu of 0.5 percent" for "In the case of wages paid in

any calendar quarter or other period during 1973, the amount of

such wages shall be multiplied by 0.58 percent in lieu of 0.5

percent".

Subsecs. (c), (d). Pub. L. 94-455, Sec. 1906(a)(11)(A),

redesignated subsec. (d) as (c). Former subsec. (c), which related

to the percentage reduction for 1970 and 1971 of the tax computed

in subsec. (b), was struck out.

1972 - Subsec. (b). Pub. L. 92-329 inserted provisions setting

forth the computation of tax in the case of wages paid in any

calendar quarter or other period during 1973.

1970 - Subsec. (a)(1). Pub. L. 91-373, Sec. 101(b)(1), reduced

from 4 to 1 the number of individuals which a person had to employ

on each of some 20 days during the preceding calendar year and

inserted provision covering persons who, during any calendar

quarter in the preceding calendar year, paid wages of $1,500 or

more.

Subsec. (b). Pub. L. 91-373, Sec. 101(b)(2), substituted "0.5

percent" for "the number of percentage points (including fractional

points) by which the rate of tax specified in section 3301 exceeds

.7 percent". be the date on which payment would have been required

if such remainder had been the tax.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-647 applicable to remuneration paid

after Dec. 31, 1988, see section 7106(d) of Pub. L. 100-647, set

out as a note under section 3321 of this title.

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-76 applicable to remuneration paid after

June 30, 1986, see section 231(d) of Pub. L. 98-76, set out as an

Effective Date note under section 3321 of this title.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by section 271(b)(2)(C) of Pub. L. 97-248 applicable to

remuneration paid after Dec. 31, 1982, see section 271(d)(1) of

Pub. L. 97-248, as amended, set out as a note under section 3301 of

this title.

Amendment by section 271(c)(3)(C) of Pub. L. 97-248 applicable to

remuneration paid after Dec. 31, 1984, see section 271(d)(2) of

Pub. L. 97-248, as amended, set out as a note under section 3301 of

this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 114(b) of Pub. L. 94-566 effective with

respect to remuneration paid after Dec. 31, 1977, for services

performed after that date, see section 114(c) of Pub. L. 94-566 set

out as a note under section 3306 of this title.

Amendment by section 211(e)(3) of Pub. L. 94-566 effective Oct.

20, 1976, see section 211(d)(3) of Pub. L. 94-566, set out as a

note under section 1101 of Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by section 101(b)(1) of Pub. L. 91-373 applicable with

respect to calendar years beginning after Dec. 31, 1971, see

section 101(c)(1) of Pub. L. 91-373, set out as a note under

section 3306 of this title.

Section 101(c)(2) of Pub. L. 91-373 provided that: "The amendment

made by subsection (b)(2) [amending this section] shall apply with

respect to calendar years beginning after December 31, 1969."

EFFECTIVE DATE

Section 4(a) of Pub. L. 91-53 provided that: "The amendments made

by the first two sections of this Act [enacting section 6317 and

amending this section and sections 3306, 6201, 6513, and 6601 of

this title] shall apply with respect to calendar years beginning

after December 31, 1969."

EXTENSION OF TIME FOR PAYMENT OF ADDITIONAL FUTA TAXES

Pub. L. 102-244, Sec. 4, Feb. 7, 1992, 106 Stat. 4, provided

that:

"(a) In General. - Notwithstanding any other provision of law, if

a qualified taxpayer is required to pay additional taxes for

taxable years beginning in 1991 with respect to any employment in

any State by reason of such State being declared a credit reduction

State, such taxpayer may elect to defer the filing and payment of

such additional taxes to a date no later than June 30, 1992.

"(b) Interest. - Notwithstanding subsection (a), for purposes of

section 6601(a) of the Internal Revenue Code of 1986, the last date

prescribed for payment of any additional taxes for which an

election is made under subsection (a) shall be January 31, 1992.

"(c) Definitions. - For purposes of this section -

"(1) Qualified taxpayer. - The term 'qualified taxpayer' means

a taxpayer -

"(A) in a State which has been declared a credit reduction

State for taxable years beginning in 1991, and

"(B) who did not receive notice of such credit reduction

before December 1, 1991 from either the State unemployment

compensation agency or the Internal Revenue Service.

"(2) Credit reduction state. - The term 'credit reduction

State' means a State with respect to which the Internal Revenue

Service has determined that a reduction in credits is applicable

for taxable years beginning in 1991 pursuant to the provisions of

section 3302 of the Internal Revenue Code of 1986.

"(d) Time and Manner for Making Election. - An election under

this section shall be made at such time and in such manner as the

Secretary of the Treasury shall prescribe."

WAGES PAID IN 1970 CALENDAR QUARTERS ENDING BEFORE AUGUST 10, 1970

Section 301(b) of Pub. L. 91-373, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "For purposes

of section 6157 of the Internal Revenue Code of 1986 [formerly

I.R.C. 1954] (relating to payment of Federal unemployment tax on

quarterly or other time period basis), in computing tax as required

by subsections (a)(1) and (2) of such section, the percentage

contained in subsection (b) of such section applicable with respect

to wages paid in any calendar quarter in 1970 ending before the

date of the enactment of this Act [Aug. 10, 1970] shall be treated

as being 0.4 percent."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3510, 6201, 6317, 6513,

6601 of this title.

-End-

-CITE-

26 USC [Sec. 6158 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter A - Place and Due Date for Payment of Tax

-HEAD-

[Sec. 6158. Repealed. Pub. L. 101-508, title XI, Sec. 11801(a)(44),

Nov. 5, 1990, 104 Stat. 1388-521]

-MISC1-

Section, added Pub. L. 94-452, Sec. 3(a), Oct. 2, 1976, 90 Stat.

1512; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.

4, 1976, 90 Stat. 1834, related to installment payment of tax

attributable to divestitures pursuant to Bank Holding Company Act

Amendments of 1970.

SAVINGS PROVISION

For provisions that nothing in repeal by Pub. L. 101-508 be

construed to affect treatment of certain transactions occurring,

property acquired, or items of income, loss, deduction, or credit

taken into account prior to Nov. 5, 1990, for purposes of

determining liability for tax for periods ending after Nov. 5,

1990, see section 11821(b) of Pub. L. 101-508, set out as a note

under section 29 of this title.

-End-

-CITE-

26 USC Sec. 6159 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter A - Place and Due Date for Payment of Tax

-HEAD-

Sec. 6159. Agreements for payment of tax liability in installments

-STATUTE-

(a) Authorization of agreements

The Secretary is authorized to enter into written agreements with

any taxpayer under which such taxpayer is allowed to satisfy

liability for payment of any tax in installment payments if the

Secretary determines that such agreement will facilitate collection

of such liability.

(b) Extent to which agreements remain in effect

(1) In general

Except as otherwise provided in this subsection, any agreement

entered into by the Secretary under subsection (a) shall remain

in effect for the term of the agreement.

(2) Inadequate information or jeopardy

The Secretary may terminate any agreement entered into by the

Secretary under subsection (a) if -

(A) information which the taxpayer provided to the Secretary

prior to the date such agreement was entered into was

inaccurate or incomplete, or

(B) the Secretary believes that collection of any tax to

which an agreement under this section relates is in jeopardy.

(3) Subsequent change in financial conditions

If the Secretary makes a determination that the financial

condition of a taxpayer with whom the Secretary has entered into

an agreement under subsection (a) has significantly changed, the

Secretary may alter, modify, or terminate such agreement.

(4) Failure to pay an installment or any other tax liability when

due or to provide requested financial information

The Secretary may alter, modify, or terminate an agreement

entered into by the Secretary under subsection (a) in the case of

the failure of the taxpayer -

(A) to pay any installment at the time such installment

payment is due under such agreement,

(B) to pay any other tax liability at the time such liability

is due, or

(C) to provide a financial condition update as requested by

the Secretary.

(5) Notice requirements

The Secretary may not take any action under paragraph (2), (3),

or (4) unless -

(A) a notice of such action is provided to the taxpayer not

later than the day 30 days before the date of such action, and

(B) such notice includes an explanation why the Secretary

intends to take such action.

The preceding sentence shall not apply in any case in which the

Secretary believes that collection of any tax to which an

agreement under this section relates is in jeopardy.

(c) Secretary required to enter into installment agreements in

certain cases

In the case of a liability for tax of an individual under

subtitle A, the Secretary shall enter into an agreement to accept

the payment of such tax in installments if, as of the date the

individual offers to enter into the agreement -

(1) the aggregate amount of such liability (determined without

regard to interest, penalties, additions to the tax, and

additional amounts) does not exceed $10,000;

(2) the taxpayer (and, if such liability relates to a joint

return, the taxpayer's spouse) has not, during any of the

preceding 5 taxable years -

(A) failed to file any return of tax imposed by subtitle A;

(B) failed to pay any tax required to be shown on any such

return; or

(C) entered into an installment agreement under this section

for payment of any tax imposed by subtitle A,

(3) the Secretary determines that the taxpayer is financially

unable to pay such liability in full when due (and the taxpayer

submits such information as the Secretary may require to make

such determination);

(4) the agreement requires full payment of such liability

within 3 years; and

(5) the taxpayer agrees to comply with the provisions of this

title for the period such agreement is in effect.

(d) Administrative review

The Secretary shall establish procedures for an independent

administrative review of terminations of installment agreements

under this section for taxpayers who request such a review.

(e) Cross reference

For rights to administrative review and appeal, see section

7122(d).

-SOURCE-

(Added Pub. L. 100-647, title VI, Sec. 6234(a), Nov. 10, 1988, 102

Stat. 3735; amended Pub. L. 104-168, title II, Secs. 201(a), (b),

202(a), July 30, 1996, 110 Stat. 1456, 1457; Pub. L. 105-206, title

III, Secs. 3462(c)(2), 3467(a), July 22, 1998, 112 Stat. 766, 769;

Pub. L. 105-277, div. J, title IV, Sec. 4002(g), Oct. 21, 1998, 112

Stat. 2681-907.)

-MISC1-

AMENDMENTS

1998 - Subsec. (c). Pub. L. 105-206, Sec. 3467(a), added subsec.

(c). Former subsec. (c) redesignated (d).

Subsec. (d). Pub. L. 105-277 redesignated subsec. (d), relating

to cross reference, as (e).

Pub. L. 105-206, Sec. 3467(a), redesignated former subsec. (c),

relating to administrative review, as (d).

Pub. L. 105-206, Sec. 3462(c)(2), added subsec. (d), relating to

cross reference.

Subsec. (e). Pub. L. 105-277 redesignated subsec. (d), relating

to cross reference, as (e).

1996 - Subsec. (b)(3). Pub. L. 104-168, Sec. 201(b), amended par.

(3) generally. Prior to amendment, par. (3) read as follows:

"(A) In general. - If the Secretary makes a determination that

the financial condition of a taxpayer with whom the Secretary has

entered into an agreement under subsection (a) has significantly

changed, the Secretary may alter, modify, or terminate such

agreement.

"(B) Notice. - Action may be taken by the Secretary under

subparagraph (A) only if -

"(i) notice of such determination is provided to the taxpayer

no later than 30 days prior to the date of such action, and

"(ii) such notice includes the reasons why the Secretary

believes a significant change in the financial condition of the

taxpayer has occurred."

Subsec. (b)(5). Pub. L. 104-168, Sec. 201(a), added par. (5).

Subsec. (c). Pub. L. 104-168, Sec. 202(a), added subsec. (c).

EFFECTIVE DATE OF 1998 AMENDMENTS

Amendment by Pub. L. 105-277 effective as if included in the

provision of the Internal Revenue Service Restructuring and Reform

Act of 1998, Pub. L. 105-206, to which such amendment relates, see

section 4002(k) of Pub. L. 105-277, set out as a note under section

1 of this title.

Amendment by section 3462(c)(2) of Pub. L. 105-206 applicable to

proposed offers-in-compromise and installment agreements submitted

after July 22, 1998, see section 3462(e)(1) of Pub. L. 105-206, set

out as a note under section 6331 of this title.

Pub. L. 105-206, title III, Sec. 3467(b), July 22, 1998, 112

Stat. 770, provided that: "The amendment made by this section

[amending this section] shall take effect on the date of the

enactment of this Act [July 22, 1998]."

EFFECTIVE DATE OF 1996 AMENDMENT

Section 201(c) of Pub. L. 104-168 provided that: "The amendments

made by this section [amending this section] shall take effect on

the date 6 months after the date of the enactment of this Act [July

30, 1996]."

Section 202(b) of Pub. L. 104-168 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect on

January 1, 1997."

EFFECTIVE DATE

Section 6234(c) of Pub. L. 100-647 provided that: "The amendments

made by this section [enacting this section and amending section

6601 of this title] shall apply to agreements entered into after

the date of the enactment of this Act [Nov. 10, 1988]."

STATEMENTS REGARDING INSTALLMENT AGREEMENTS

Pub. L. 105-206, title III, Sec. 3506, July 22, 1998, 112 Stat.

771, as amended by Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec.

302(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A-632, provided that:

"The Secretary of the Treasury or the Secretary's delegate shall,

beginning not later than September 1, 2001, provide each taxpayer

who has an installment agreement in effect under section 6159 of

the Internal Revenue Code of 1986 an annual statement setting forth

the initial balance at the beginning of the year, the payments made

during the year, and the remaining balance as of the end of the

year."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6323, 6330, 6331, 6343,

6601, 6651, 7122 of this title.

-End-

-CITE-

26 USC Subchapter B - Extensions of Time for Payment 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter B - Extensions of Time for Payment

-HEAD-

SUBCHAPTER B - EXTENSIONS OF TIME FOR PAYMENT

-MISC1-

Sec.

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.

AMENDMENTS

1981 - Pub. L. 97-34, title IV, Sec. 422(e)(5)(C), Aug. 13, 1981,

95 Stat. 316, substituted in item 6166 "Extension of time" for

"Alternate extension of time" and struck out item 6166A "Extension

of time for payment of estate tax where estate consists largely of

interest in closely held business".

1976 - Pub. L. 94-455, title XIX, Sec. 1906(b)(4), title XX, Sec.

2004(f)(5), Oct. 4, 1976, 90 Stat. 1833, 1872, struck out item 6162

"Extension of time for payment of tax on gain attributable to

liquidation of personal holding companies", added item 6166, and

renumbered former item 6166 as 6166A.

1966 - Pub. L. 89-384, Sec. 1(g)(2), Apr. 8, 1966, 80 Stat. 104,

added item 6167.

1958 - Pub. L. 85-866, title II, Sec. 206(b), Sept. 2, 1958, 72

Stat. 1684, added item 6166.

-End-

-CITE-

26 USC Sec. 6161 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter B - Extensions of Time for Payment

-HEAD-

Sec. 6161. Extension of time for paying tax

-STATUTE-

(a) Amount determined by taxpayer on return

(1) General rule

The Secretary, except as otherwise provided in this title, may

extend the time for payment of the amount of the tax shown, or

required to be shown, on any return or declaration required under

authority of this title (or any installment thereof), for a

reasonable period not to exceed 6 months (12 months in the case

of estate tax) from the date fixed for payment thereof. Such

extension may exceed 6 months in the case of a taxpayer who is

abroad.

(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

Under regulations prescribed by the Secretary, the Secretary

may extend the time for the payment of the amount determined as a

deficiency of a tax imposed by chapter 1, 12, 41, 42, 43, or 44

for a period not to exceed 18 months from the date fixed for the

payment of the deficiency, and in exceptional cases, for a

further period not to exceed 12 months. An extension under this

paragraph may be granted only where it is shown to the

satisfaction of the Secretary that payment of a deficiency upon

the date fixed for the payment thereof will result in undue

hardship to the taxpayer in the case of a tax imposed by chapter

1, 41, 42, 43, or 44, or to the donor in the case of a tax

imposed by chapter 12.

(2) Estate tax

Under regulations prescribed by the Secretary, the Secretary

may, for reasonable cause, extend the time for the payment of any

deficiency of a tax imposed by chapter 11 for a reasonable period

not to exceed 4 years from the date otherwise fixed for the

payment of the deficiency.

(3) No extension for certain deficiencies

No extension shall be granted under this subsection for any

deficiency if the deficiency is due to negligence, to intentional

disregard of rules and regulations, or to fraud with intent to

evade tax.

(c) Claims in cases under title 11 of the United States Code or in

receivership proceedings

Extensions of time for payment of any portion of a claim for tax

under chapter 1 or chapter 12, allowed in cases under title 11 of

the United States Code or in receivership proceedings, which is

unpaid, may be had in the same manner and subject to the same

provisions and limitations as provided in subsection (b) in respect

of a deficiency in such tax.

(d) Cross references

(1) Period of limitation

For extension of the period of limitation in case of an

extension under subsection (a)(2) or subsection (b)(2), see

section 6503(d).

(2) Security

For authority of the Secretary to require security in case of

an extension under subsection (a)(2) or subsection (b), see

section 6165.

(3) Postponement of certain acts

For time for performing certain acts postponed by reason of

war, see section 7508, and by reason of Presidentially declared

disaster or terroristic or military action, see section 7508A.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 762; Pub. L. 85-866, title II,

Sec. 206(c), Sept. 2, 1958, 72 Stat. 1684; Pub. L. 91-172, title I,

Sec. 101(j)(37), Dec. 30, 1969, 83 Stat. 530; Pub. L. 91-614, title

I, Sec. 101(h), Dec. 31, 1970, 84 Stat. 1838; Pub. L. 93-406, title

II, Sec. 1016(a)(7), Sept. 2, 1974, 88 Stat. 929; Pub. L. 94-455,

title XIII, Sec. 1307(d)(2)(C), title XVI, Sec. 1605(b)(3), title

XIX, Sec. 1906(b)(13)(A), title XX, Sec. 2004(c)(1), (2), Oct. 4,

1976, 90 Stat. 1727, 1754, 1834, 1867, 1868; Pub. L. 96-223, title

I, Sec. 101(f)(1)(H), Apr. 2, 1980, 94 Stat. 252; Pub. L. 96-589,

Sec. 6(i)(8), Dec. 24, 1980, 94 Stat. 3410; Pub. L. 97-34, title

IV, Sec. 422(e)(1), Aug. 13, 1981, 95 Stat. 316; Pub. L. 100-418,

title I, Sec. 1941(b)(2)(B)(viii), Aug. 23, 1988, 102 Stat. 1323;

Pub. L. 107-134, title I, Sec. 112(d)(3), Jan. 23, 2002, 115 Stat.

2435.)

-MISC1-

AMENDMENTS

2002 - Subsec. (d)(3). Pub. L. 107-134 added par. (3).

1988 - Subsec. (b)(1). Pub. L. 100-418 substituted "or 44" for

"44, or 45" in two places.

1981 - Subsec. (a)(2)(B). Pub. L. 97-34 struck out reference to

section 6166A.

1980 - Subsec. (b)(1). Pub. L. 96-223 inserted references to

chapter 45.

Subsec. (c). Pub. L. 96-589 substituted "Claims in cases under

title 11 of the United States Code or in receivership proceedings"

for "Claims in bankruptcy or receivership proceedings" in heading,

and substituted reference to cases under title 11 of the United

States Code, for reference to bankruptcy proceedings in text.

1976 - Subsec. (a)(1). Pub. L. 94-455, Sec. 1906(b)(13)(A),

struck out "or his delegate" after "Secretary".

Subsec. (a)(2). Pub. L. 94-455, Sec. 2004(c)(1), struck out in

subpar. (A) "that the payment, on the due date, of" before "any

part of the amount", in subpar. (B) provisions relating to payment,

on the date fixed for payment of any installment, and subpar. (C)

which related to payment upon notice and demand of a deficiency

prorated under the provisions of section 6161, inserted in subpar.

(B) "or 6166A" after "section 6166", substituted in subpar. (B)

"under such section" for "the date for payment for which had not

arrived", and inserted in text following subpar. (B) provisions

relating to extension of time for payment in the case of an amount

referred to in subpar. (B).

Subsec. (b). Pub. L. 94-455, Secs. 1307(d)(2)(C), 1605(b)(3),

2004(c)(2), among other changes, inserted reference to chapter 41,

effective on or after Oct. 4, 1976, and reference to chapter 44,

applicable to taxable years of real estate investment trusts

beginning after Oct. 4, 1976, and struck out provisions relating to

grant of extensions with respect to hardships to taxpayers,

applicable to the estates of decedents dying after Dec. 31, 1976.

Subsec. (d)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out

"or his delegate" after "Secretary".

1974 - Subsec. (b). Pub. L. 93-406 inserted references to chapter

43.

1970 - Subsec. (a)(1). Pub. L. 91-614 substituted "6 months (12

months in the case of estate tax)" for "6 months".

1969 - Subsec. (b). Pub. L. 91-172 inserted references to chapter

42.

1958 - Subsec. (a)(2). Pub. L. 85-866 inserted provisions

allowing Secretary or his delegate to extend time for payment for

reasonable period, not exceeding 10 years from date prescribed by

section 6151(a), if he finds that payment on date fixed for payment

of any installment under section 6166, or any part of such

installment, or payment of any part of a deficiency prorated under

section 6166 to installments the date for payment of which had

arrived would result in undue hardship.

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-134 applicable to disasters and

terroristic or military actions occurring on or after Sept. 11,

2001, with respect to any action of the Secretary of the Treasury,

the Secretary of Labor, or the Pension Benefit Guaranty Corporation

occurring on or after Jan. 23, 2002, see section 112(f) of Pub. L.

107-134, set out as a note under section 6081 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-418 applicable to crude oil removed from

the premises on or after Aug. 23, 1988, see section 1941(c) of Pub.

L. 100-418, set out as a note under section 164 of this title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-34 applicable to estates of decedents

dying after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97-34,

set out as a note under section 6166 of this title.

EFFECTIVE DATE OF 1980 AMENDMENTS

Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not

applicable to proceedings under Title 11, Bankruptcy, commenced

before Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as

a note under section 108 of this title.

Section 101(i) of Pub. L. 96-223, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(1) In general. - The amendments made by this section [enacting

sections 4986 to 4998, 6050C, 6076, and 7241 of this title and

amending this section and sections 164, 6211, 6212, 6213, 6214,

6302, 6344, 6501, 6511, 6512, 6601, 6611, 6652, 6653, 6862, 7422,

and 7512 of this title] shall apply to periods after February 29,

1980.

"(2) Transitional rules. - For the period ending June 30, 1980,

the Secretary of the Treasury or his delegate shall prescribe rules

relating to the administration of chapter 45 of the Internal

Revenue Code of 1986 [formerly I.R.C. 1954]. To the extent provided

in such rules, such rules shall supplement or supplant for such

period the administrative provisions contained in chapter 45 of

such Code (or in so much of subtitle F of such Code [section 6001

et seq. of this title] as relates to such chapter 45)."

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1307(d)(2)(C) of Pub. L. 94-455 effective on

and after Oct. 4, 1976, see section 1307(e)(6) of Pub. L. 94-455,

set out as a note under section 501 of this title.

For effective date of amendment by section 1605(b)(3) of Pub. L.

94-455, see section 1608(d) of Pub. L. 94-455, set out as a note

under section 856 of this title.

Amendment by section 2004(c)(1), (2) of Pub. L. 94-455 applicable

to estates of decedents dying after Dec. 31, 1976, see section

2004(g) of Pub. L. 94-455, set out as an Effective Date note under

section 6166 of this title.

EFFECTIVE DATE OF 1974 AMENDMENT

Amendment by Pub. L. 93-406 applicable, except as otherwise

provided in section 1017(c) through (i) of Pub. L. 93-406, for plan

years beginning after Sept. 2, 1974, but, in the case of plans in

existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable

for plan years beginning after Dec. 31, 1975, see section 1017 of

Pub. L. 93-406, set out as an Effective Date; Transitional Rules

note under section 410 of this title.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-614 applicable with respect to decedents

dying after Dec. 31, 1970, see section 101(j) of Pub. L. 91-614,

set out as a note under section 2032 of this title.

EFFECTIVE DATE OF 1969 AMENDMENT

Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section

101(k)(1) of Pub. L. 91-172, set out as an Effective Date note

under section 4940 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Section 206(f) of Pub. L. 85-866, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The

amendments made by this section [enacting section 6166 of this

title and amending this section and sections 6503 and 6601 of this

title] shall apply to estates of decedents with respect to which

the date for the filing of the estate tax return (including

extensions thereof) prescribed by section 6075(a) of the Internal

Revenue Code of 1986 [formerly I.R.C. 1954] is after the date of

the enactment of this Act [Sept. 2, 1958]; except that (1) section

6166(i) of such Code as added by this section shall apply to

estates of decedents dying after August 16, 1954, but only if the

date for the filing of the estate tax return (including extensions

thereof) expired on or before the date of the enactment of this Act

[Sept. 2, 1958], and (2) notwithstanding section 6166(a) of such

Code, if an election under such section is required to be made

before the sixtieth day after the date of the enactment of this Act

[Sept. 2, 1958] such an election shall be considered timely if made

on or before such sixtieth day."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2011, 2014, 2056A, 2058,

2204, 6215, 6503, 6873 of this title.

-End-

-CITE-

26 USC [Sec. 6162 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter B - Extensions of Time for Payment

-HEAD-

[Sec. 6162. Repealed. Pub. L. 94-455, title XIX, Sec. 1906(a)(12),

Oct. 4, 1976, 90 Stat. 1825]

-MISC1-

Section, act Aug. 16, 1954, ch. 736, 68A Stat. 763, provided for

an extension of time for payment of tax on gain attributable to

liquidation of personal holding companies.

EFFECTIVE DATE OF REPEAL

Repeal effective on first day of month which begins more than 90

days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94-455,

set out as an Effective Date of 1976 Amendment note under section

6013 of this title.

-End-

-CITE-

26 USC Sec. 6163 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter B - Extensions of Time for Payment

-HEAD-

Sec. 6163. Extension of time for payment of estate tax on value of

reversionary or remainder interest in property

-STATUTE-

(a) Extension permitted

If the value of a reversionary or remainder interest in property

is included under chapter 11 in the value of the gross estate, the

payment of the part of the tax under chapter 11 attributable to

such interest may, at the election of the executor, be postponed

until 6 months after the termination of the precedent interest or

interests in the property, under such regulations as the Secretary

may prescribe.

(b) Extension for reasonable cause

At the expiration of the period of postponement provided for in

subsection (a), the Secretary may, for reasonable cause, extend the

time for payment for a reasonable period or periods not in excess

of 3 years from the expiration of the period of postponement

provided in subsection (a).

(c) Cross reference

For authority of the Secretary to require security in the

case of an extension under this section, see section 6165.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 763; Pub. L. 85-866, title I,

Sec. 66(b)(1), Sept. 2, 1958, 72 Stat. 1658; Pub. L. 88-272, title

II, Sec. 240(a), Feb. 26, 1964, 78 Stat. 129; Pub. L. 93-625, Sec.

7(d)(1), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), title XX, Sec. 2004(c)(3), Oct. 4, 1976, 90

Stat. 1834, 1868.)

-MISC1-

AMENDMENTS

1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck

out "or his delegate" after "Secretary".

Subsec. (b). Pub. L. 94-455, Sec. 2004(c)(3), substituted

provisions relating to extension of time for payment for a

reasonable cause for provisions relating to extension of time for

payment for undue hardship to the estate.

Subsec. (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or

his delegate" after "Secretary".

1975 - Subsec. (c). Pub. L. 93-625 struck out par. (1) cross

reference to interest provisions of section 6601(b) of this title

and struck out par. (2) designation of cross reference to security,

now incorporated in present subsec. (c) provision.

1964 - Subsec. (b). Pub. L. 88-272 substituted "or periods not in

excess of 3" for "not in excess of 2".

1958 - Subsecs. (b), (c). Pub. L. 85-866 added subsec. (b) and

redesignated former subsec. (b) as (c).

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 2004(c)(3) of Pub. L. 94-455 applicable to

estates of decedents dying after Dec. 31, 1976, see section 2004(g)

of Pub. L. 94-455, set out as an Effective Date note under section

6166 of this title.

EFFECTIVE DATE OF 1975 AMENDMENT

Amendment by Pub. L. 93-625 effective on July 1, 1975, and

applicable to amounts outstanding on such date or arising

thereafter, see section 7(e) of Pub. L. 93-625, set out as an

Effective Date note under section 6621 of this title.

EFFECTIVE DATE OF 1964 AMENDMENT

Section 240(c) of Pub. L. 88-272, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(1) The amendment made by subsection (a) [amending this section]

shall apply in the case of any reversionary or remainder interest

only if the time for payment of the tax under chapter 11 of the

Internal Revenue Code of 1986 [formerly I.R.C. 1954] attributable

to such interest, including any extensions thereof, has not expired

on the date of the enactment of this Act [Feb. 26, 1964].

"(2) The amendment made by subsection (b) [amending section 925

of I.R.C. 1939] shall apply in the case of any reversionary or

remainder interest only if the time for payment of the tax under

chapter 3 of the Internal Revenue Code of 1939 attributable to such

interest, including any extensions thereof, has not expired on the

date of the enactment of this Act [Feb. 26, 1964]."

EFFECTIVE DATE OF 1958 AMENDMENT

Section 66(b)(3) of Pub. L. 85-866 provided that: "The amendments

made by paragraphs (1) and (2) [amending this section and sections

925 and 926 of I.R.C. 1939] shall apply in the case of any

reversionary or remainder interest only if the precedent interest

or interests in the property did not terminate before the beginning

of the 6-month period which ends on the date of the enactment of

this Act [Sept. 2, 1958]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 163, 2015, 2204, 6503 of

this title.

-End-

-CITE-

26 USC Sec. 6164 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter B - Extensions of Time for Payment

-HEAD-

Sec. 6164. Extension of time for payment of taxes by corporations

expecting carrybacks

-STATUTE-

(a) In general

If a corporation, in any taxable year, files with the Secretary a

statement, as provided in subsection (b), with respect to an

expected net operating loss carryback from such taxable year, the

time for payment of all or part of any tax imposed by subtitle A

for the taxable year immediately preceding such taxable year shall

be extended, to the extent and subject to the conditions and

limitations hereinafter provided in this section.

(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

The amount the time for payment of which may be extended under

subsection (a) with respect to any tax shall not exceed the amount

of such tax shown on the return, increased by any amount assessed

as a deficiency (or as interest or addition to the tax) prior to

the date of filing the statement and decreased by any amount paid

or required to be paid prior to the date of such filing, and the

total amount of the tax the time for payment of which may be

extended shall not exceed the amount stated under subsection

(b)(3). For purposes of this subsection, an amount shall not be

considered as required to be paid unless shown on the return or

assessed as a deficiency (or as interest or addition to the tax),

and an amount assessed as a deficiency (or as interest or addition

to the tax) shall be considered to be required to be paid prior to

the date of filing of the statement if the 10th day after notice

and demand for its payment occurs prior to such date. If an

extension of time under this section relates to only a part of the

tax, the time for payment of the remainder shall be the date on

which payment would have been required if such remainder had been

the tax.

(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

Each statement filed under subsection (a) with respect to any

taxable year shall be in lieu of the last statement previously

filed with respect to such year. If the amount the time for payment

of which is extended under a statement filed is less than the

amount under the last statement previously filed, the extension of

time shall be terminated as to the difference between the two

amounts.

(f) Termination

The Secretary is not required to make any examination of the

statement, but he may make such examination thereof as he deems

necessary and practicable. The Secretary shall terminate the

extension as to any part of the amount to which it relates which he

deems should be terminated because, upon such examination, he

believes that, as of the time such examination is made, all or any

part of the statement clearly is in a material respect erroneous or

unreasonable.

(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

If the Secretary believes that collection of the amount to which

an extension under this section relates is in jeopardy, he shall

immediately terminate such extension, and notice and demand shall

be made by him for payment of such amount.

(i) Consolidated returns

If the corporation seeking an extension of time under this

section made or was required to make a consolidated return, either

for the taxable year within which the net operating loss arises or

for the preceding taxable year affected by such loss, the

provisions of such section shall apply only to such extent and

subject to such conditions, limitations, and exceptions as the

Secretary may by regulations prescribe.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 764; Pub. L. 85-866, title I,

Sec. 89(b), Sept. 2, 1958, 72 Stat. 1665; Pub. L. 94-455, title

XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L.

97-248, title II, Sec. 234(b)(2)(C), Sept. 3, 1982, 96 Stat. 503.)

-MISC1-

AMENDMENTS

1982 - Subsec. (c). Pub. L. 97-248, Sec. 234(b)(2)(C)(i),

substituted "shall be the date on which payment would have been

required if such remainder had been the tax" for "shall be

considered to be the dates on which payments would have been

required if such remainder had been the tax and the taxpayer had

elected to pay the tax in installments as provided in section 6152"

in last sentence.

Subsec. (g)(2). Pub. L. 97-248, Sec. 234(b)(2)(C)(ii),

substituted "date on which payment would have been required if

there had been no extension with respect to such amount" for "dates

on which payments would have been required if there had been no

extension with respect to such amount and the taxpayer had elected

to pay the tax in installments as provided in section 6152".

1976 - Subsecs. (a), (b), (d), (f), (h), (i). Pub. L. 94-455

struck out "or his delegate" after "Secretary" wherever appearing.

1958 - Subsec. (d)(2). Pub. L. 85-866 inserted "certified mail

or" before "registered mail".

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-248 applicable to taxable years beginning

after Dec. 31, 1982, see section 234(e) of Pub. L. 97-248, set out

as a note under section 6655 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-866 applicable only if mailing occurs

after Sept. 2, 1958, see section 89(d) of Pub. L. 85-866, set out

as a note under section 7502 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 6040, 6411, 6864 of this

title.

-End-

-CITE-

26 USC Sec. 6165 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter B - Extensions of Time for Payment

-HEAD-

Sec. 6165. Bonds where time to pay tax or deficiency has been

extended

-STATUTE-

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.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 766; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" wherever appearing.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1294, 6163, 6166, 6167,

6324A, 7103 of this title.

-End-

-CITE-

26 USC Sec. 6166 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter B - Extensions of Time for Payment

-HEAD-

Sec. 6166. Extension of time for payment of estate tax where estate

consists largely of interest in closely held business

-STATUTE-

(a) 5-year deferral; 10-year installment payment

(1) In general

If the value of an interest in a closely held business which is

included in determining the gross estate of a decedent who was

(at the date of his death) a citizen or resident of the United

States exceeds 35 percent of the adjusted gross estate, the

executor may elect to pay part or all of the tax imposed by

section 2001 in 2 or more (but not exceeding 10) equal

installments.

(2) Limitation

The 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

If an election is made under paragraph (1), the first

installment shall be paid on or before the date selected by the

executor which is not more than 5 years after the date prescribed

by section 6151(a) for payment of the tax, and each succeeding

installment shall be paid on or before the date which is 1 year

after the date prescribed by this paragraph for payment of the

preceding installment.

(b) Definitions and special rules

(1) Interest in closely held business

For 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

Determinations shall be made as of the time immediately

before the decedent's death.

(B) Certain interests held by husband and wife

Stock 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

Property owned, directly or indirectly, by or for a

corporation, partnership, estate, or trust shall be considered

as being owned proportionately by or for its shareholders,

partners, or beneficiaries. For purposes of the preceding

sentence, a person shall be treated as a beneficiary of any

trust only if such person has a present interest in the trust.

(D) Certain interests held by members of decedent's family

All stock and all partnership interests held by the decedent

or by any member of his family (within the meaning of section

267(c)(4)) shall be treated as owned by the decedent.

(3) Farmhouses and certain other structures taken into account

For purposes of the 35-percent requirement of subsection

(a)(1), an interest in a closely held business which is the

business of farming includes an interest in residential buildings

and related improvements on the farm which are occupied on a

regular basis by the owner or lessee of the farm or by persons

employed by such owner or lessee for purposes of operating or

maintaining the farm.

(4) Value

For purposes of this section, value shall be value determined

for purposes of chapter 11 (relating to estate tax).

(5) Closely held business amount

For purposes of this section, the term "closely held business

amount" means the value of the interest in a closely held

business which qualifies under subsection (a)(1).

(6) Adjusted gross estate

For purposes of this section, the term, "adjusted gross estate"

means the value of the gross estate reduced by the sum of the

amounts allowable as a deduction under section 2053 or 2054. Such

sum shall be determined on the basis of the facts and

circumstances in existence on the date (including extensions) for

filing the return of tax imposed by section 2001 (or, if earlier,

the date on which such return is filed).

(7) Partnership interests and stock which is not readily tradable

(A) In general

If 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

For purposes of this paragraph, the term

"non-readily-tradable stock" means stock for which, at the time

of the decedent's death, there was no market on a stock

exchange or in an over-the-counter market.

(8) Stock in holding company treated as business company stock in

certain cases

(A) In general

If the executor elects the benefits of this paragraph, then -

(i) Holding company stock treated as business company stock

For purposes of this section, the portion of the stock of

any holding company which represents direct ownership (or

indirect ownership through 1 or more other holding companies)

by such company in a business company shall be deemed to be

stock in such business company.

(ii) 5-year deferral for principal not to apply

The executor shall be treated as having selected under

subsection (a)(3) the date prescribed by section 6151(a).

(iii) 2-percent interest rate not to apply

For purposes of applying section 6601(j), the 2-percent

portion (as defined in such section) shall be treated as

being zero.

(B) All stock must be non-readily-tradable stock

(i) In general

No stock shall be taken into account for purposes of

applying this paragraph unless it is non-readily-tradable

stock (within the meaning of paragraph (7)(B)).

(ii) Special application where only holding company stock is

non-readily-tradable stock

If the requirements of clause (i) are not met, but all of

the stock of each holding company taken into account is

non-readily-tradable, then this paragraph shall apply, but

subsection (a)(1) shall be applied by substituting "5" for

"10".

(C) Application of voting stock requirement of paragraph

(1)(C)(i)

For purposes of clause (i) of paragraph (1)(C), the deemed

stock resulting from the application of subparagraph (A) shall

be treated as voting stock to the extent that voting stock in

the holding company owns directly (or through the voting stock

of 1 or more other holding companies) voting stock in the

business company.

(D) Definitions

For purposes of this paragraph -

(i) Holding company

The term "holding company" means any corporation holding

stock in another corporation.

(ii) Business company

The term "business company" means any corporation carrying

on a trade or business.

(9) Deferral not available for passive assets

(A) In general

For purposes of subsection (a)(1) and determining the closely

held business amount (but not for purposes of subsection (g)),

the value of any interest in a closely held business shall not

include the value of that portion of such interest which is

attributable to passive assets held by the business.

(B) Passive asset defined

For purposes of this paragraph -

(i) In general

The term "passive asset" means any asset other than an

asset used in carrying on a trade or business.

(ii) Stock treated as passive asset

The 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 corporations

If -

(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 general

If 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

For purposes of this section, any asset used in a

qualifying lending and finance business shall be treated as

an asset which is used in carrying on a trade or business.

(ii) 5-year deferral for principal not to apply

The executor shall be treated as having selected under

subsection (a)(3) the date prescribed by section 6151(a).

(iii) 5 equal installments allowed

For purposes of applying subsection (a)(1), "5" shall be

substituted for "10".

(B) Definitions

For purposes of this paragraph -

(i) Qualifying lending and finance business

The 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 business

The 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

The term "qualifying lending and finance business" shall

not include any interest in an entity, if the stock or debt

of such entity or a controlled group (as defined in section

267(f)(1)) of which such entity was a member was readily

tradable on an established securities market or secondary

market (as defined by the Secretary) at any time within 3

years before the date of the decedent's death.

(c) Special rule for interest in 2 or more closely held businesses

For purposes of this section, interest in 2 or more closely held

businesses, with respect to each of which there is included in

determining the value of the decedent's gross estate 20 percent or

more of the total value of each such business, shall be treated as

an interest in a single closely held business. For purposes of the

20-percent requirement of the preceding sentence, an interest in a

closely held business which represents the surviving spouse's

interest in property held by the decedent and the surviving spouse

as community property or as joint tenants, tenants by the entirety,

or tenants in common shall be treated as having been included in

determining the value of the decedent's gross estate.

(d) Election

Any election under subsection (a) shall be made not later than

the time prescribed by section 6075(a) for filing the return of tax

imposed by section 2001 (including extensions thereof), and shall

be made in such manner as the Secretary shall by regulations

prescribe. If an election under subsection (a) is made, the

provisions of this subtitle shall apply as though the Secretary

were extending the time for payment of the tax.

(e) Proration of deficiency to installments

If an election is made under subsection (a) to pay any part of

the tax imposed by section 2001 in installments and a deficiency

has been assessed, the deficiency shall (subject to the limitation

provided by subsection (a)(2)) be prorated to the installments

payable under subsection (a). The part of the deficiency so

prorated to any installment the date for payment of which has not

arrived shall be collected at the same time as, and as a part of,

such installment. The part of the deficiency so prorated to any

installment the date for payment of which has arrived shall be paid

upon notice and demand from the Secretary. 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.

(f) Time for payment of interest

If the time for payment of any amount of tax has been extended

under this section -

(1) Interest for first 5 years

Interest payable under section 6601 of any unpaid portion of

such amount attributable to the first 5 years after the date

prescribed by section 6151(a) for payment of the tax shall be

paid annually.

(2) Interest for periods after first 5 years

Interest payable under section 6601 on any unpaid portion of

such amount attributable to any period after the 5-year period

referred to in paragraph (1) shall be paid annually at the same

time as, and as a part of, each installment payment of the tax.

(3) Interest in the case of certain deficiencies

In the case of a deficiency to which subsection (e) applies

which is assessed after the close of the 5-year period referred

to in paragraph (1), interest attributable to such 5-year period,

and interest assigned under paragraph (2) to any installment the

date for payment of which has arrived on or before the date of

the assessment of the deficiency, shall be paid upon notice and

demand from the Secretary.

(4) Selection of shorter period

If the executor has selected a period shorter than 5 years

under subsection (a)(3), such shorter period shall be substituted

for 5 years in paragraphs (1), (2), and (3) of this subsection.

(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 company

If 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 company

If 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

Except as provided in subparagraph (B), if any payment of

principal or interest under this section is not paid on or

before the date fixed for its payment by this section

(including any extension of time), the unpaid portion of the

tax payable in installments shall be paid upon notice and

demand from the Secretary.

(B) Payment within 6 months

If 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 general

If -

(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

An election under this subsection shall be made not later than

60 days after issuance of notice and demand by the Secretary for

the payment of the deficiency, and shall be made in such manner

as the Secretary shall by regulations prescribe.

(3) Effect of election on payment

If an election is made under this subsection, the deficiency

shall (subject to the limitation provided by subsection (a)(2))

be prorated to the installments which would have been due if an

election had been timely made under subsection (a) at the time

the estate tax return was filed. The part of the deficiency so

prorated to any installment the date for payment of which would

have arrived shall be paid at the time of the making of the

election under this subsection. The portion of the deficiency so

prorated to installments the date for payment of which would not

have so arrived shall be paid at the time such installments would

have been due if such an election had been made.

(i) Special rule for certain direct skips

To the extent that an interest in a closely held business is the

subject of a direct skip (within the meaning of section 2612(c))

occurring at the same time as and as a result of the decedent's

death, then for purposes of this section any tax imposed by section

2601 on the transfer of such interest shall be treated as if it

were additional tax imposed by section 2001.

(j) Regulations

The Secretary shall prescribe such regulations as may be

necessary to the application of this section.

(k) 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) Lien

For special lien (in lieu of bond) in the case of an

extension under this section, see section 6324A.

(3) Period of limitation

For extension of the period of limitation in the case of an

extension under this section, see section 6503(d).

(4) Interest

For provisions relating to interest on tax payable in

installments under this section, see subsection (j) of

section 6601.

(5) Transfers within 3 years of death

For special rule for qualifying an estate under this

section where property has been transferred within 3 years of

decedent's death, see section 2035(c)(2).

-SOURCE-

(Added Pub. L. 94-455, title XX, Sec. 2004(a), Oct. 4, 1976, 90

Stat. 1862; amended Pub. L. 95-600, title V, Sec. 512(a), (b), Nov.

6, 1978, 92 Stat. 2882, 2883; Pub. L. 97-34, title IV, Sec. 422(a),

(c), (e)(5)(A), (B), Aug. 13, 1981, 95 Stat. 314-316; Pub. L.

97-448, title I, Sec. 104(c), (d)(1)(B), Jan. 12, 1983, 96 Stat.

2382, 2383; Pub. L. 98-369, div. A, title V, Sec. 544(b)(4), title

X, Sec. 1021(a)-(d), July 18, 1984, 98 Stat. 894, 1024-1026; Pub.

L. 99-514, title XIV, Sec. 1432(e), Oct. 22, 1986, 100 Stat. 2730;

Pub. L. 104-188, title I, Sec. 1704(t)(15), Aug. 20, 1996, 110

Stat. 1888; Pub. L. 105-34, title V, Sec. 503(c)(1), Aug. 5, 1997,

111 Stat. 853; Pub. L. 105-206, title VI, Sec. 6007(c), July 22,

1998, 112 Stat. 809; Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec.

319(18)], Dec. 21, 2000, 114 Stat. 2763, 2763A-647; Pub. L. 107-16,

title V, Secs. 571(a), 572(a), 573(a), June 7, 2001, 115 Stat. 92,

93.)

-STATAMEND-

AMENDMENT OF SECTION

For termination of amendment by section 901 of Pub. L. 107-16,

see Effective and Termination Dates of 2001 Amendment note below.

-MISC1-

PRIOR PROVISIONS

A prior section 6166 was renumbered section 6166A of this title

and later repealed by Pub. L. 97-34, title IV, Sec. 422(d), Aug.

13, 1981, 95 Stat. 315.

AMENDMENTS

2001 - Subsec. (b)(1)(B)(ii), (C)(ii). Pub. L. 107-16, Secs.

571(a), 901, temporarily substituted "45" for "15". See Effective

and Termination Dates of 2001 Amendment note below.

Subsec. (b)(8)(B). Pub. L. 107-16, Secs. 573(a), 901, temporarily

reenacted heading without change and amended text of subpar. (B)

generally. Prior to amendment, text read as follows: "No stock

shall be taken into account for purposes of applying this paragraph

unless it is non-readily-tradable stock (within the meaning of

paragraph (7)(B))." See Effective and Termination Dates of 2001

Amendment note below.

Subsec. (b)(9)(B)(iii)(I). Pub. L. 107-16, Secs. 571(a), 901,

temporarily substituted "45" for "15". See Effective and

Termination Dates of 2001 Amendment note below.

Subsec. (b)(10). Pub. L. 107-16, Secs. 572(a), 901, temporarily

added par. (10). See Effective and Termination Dates of 2001

Amendment note below.

2000 - Subsec. (k)(5). Pub. L. 106-554 substituted "2035(c)(2)"

for "2035(d)(4)".

1998 - Subsec. (b)(7)(A)(iii). Pub. L. 105-206, Sec. 6007(c)(1),

amended cl. (iii) generally. Prior to amendment, cl. (iii) read as

follows: "section 6601(j) (relating to 2-percent rate of interest)

shall not apply."

Subsec. (b)(8)(A)(iii). Pub. L. 105-206, Sec. 6007(c)(2),

reenacted heading without change and amended text of cl. (iii)

generally. Prior to amendment, text read as follows: "Section

6601(j) (relating to 2-percent rate of interest) shall not apply."

1997 - Subsec. (b)(7)(A)(iii). Pub. L. 105-34 substituted

"2-percent" for "4-percent".

Subsec. (b)(8)(A)(iii). Pub. L. 105-34 substituted "2-percent"

for "4-percent" in heading and text.

1996 - Subsec. (k)(6). Pub. L. 104-188 struck out par. (6) which

provided cross reference to former section 2210(c) of this title

authorizing payment of certain portion of estate tax in

installments under provisions of this section.

1986 - Subsecs. (i) to (k). Pub. L. 99-514 added subsec. (i) and

redesignated former subsecs. (i) and (j) as (j) and (k),

respectively.

1984 - Subsec. (b)(8). Pub. L. 98-369, Sec. 1021(a), added par.

(8).

Subsec. (b)(9). Pub. L. 98-369, Sec. 1021(b), added par. (9).

Subsec. (g)(1)(E), (F). Pub. L. 98-369, Sec. 1021(c), added

subpars. (E) and (F).

Subsec. (g)(2)(C). Pub. L. 98-369, Sec. 1021(d), added subpar.

(C).

Subsec. (j)(6). Pub. L. 98-369, Sec. 544(b)(4), added par. (6).

1983 - Subsec. (b)(3). Pub. L. 97-448, Sec. 104(c)(1),

substituted "35-percent requirement" for "65-percent requirement".

Subsec. (g)(1)(B)(i). Pub. L. 97-448, Sec. 104(c)(2), substituted

"the redemption of such stock, and the withdrawal of money or other

property distributed in such redemption, shall not be treated as a

distribution or withdrawal for purposes of subparagraph (A), and"

for "subparagraph (A)(i) does not apply with respect to the stock

redeemed; and for purposes of such subparagraph the interest in the

closely held business shall be considered to be such interest

reduced by the value of the stock redeemed, and".

Subsec. (g)(1)(B)(ii). Pub. L. 97-448, Sec. 104(c)(2),

substituted "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" for

"subparagraph (A)(ii) does not apply with respect to withdrawals of

money and other property distributed; and for purposes of such

subparagraph the value of the trade or business shall be considered

to be such value reduced by the amount of money and other property

distributed".

Subsec. (j)(5). Pub. L. 97-448, Sec. 104(d)(1)(B), added par.

(5).

1981 - Pub. L. 97-34, Sec. 422(e)(5)(B), substituted "Extension

of time" for "Alternate extension of time" in section catchline.

Subsec. (a). Pub. L. 97-34, Sec. 422(a)(1), (e)(5)(A),

substituted in par. (1) "35 percent" for "65 percent" and struck

out par. (4) which provided that no election be made under this

section by the executor of the estate of any decedent if an

election under section 6166A applies with respect to the estate of

such decedent.

Subsec. (c). Pub. L. 97-34, Sec. 422(a)(2), substituted "20

percent or more" for "more than 20 percent".

Subsec. (g)(1)(A). Pub. L. 97-34, Sec. 422(c)(1), redesignated

cl. (i) as cl. (i)(I), substituted "any portion" for "one-third or

more in value", added cl. (i)(II), substituted in cl. (ii) "the

aggregate of such distributions, sales, exchanges, or other

dispositions and withdrawals equals or exceeds 50 percent of the

value of such interest" for "aggregate withdrawals of money and

other property from the trade or business, an interest in which

qualifies under subsection (a)(1), made with respect to such

interest, equal or exceed one-third of the value of such trade or

business" and in provision following cl. (ii) substituted "the

unpaid portion" for "any unpaid portion".

Subsec. (g)(1)(D). Pub. L. 97-34, Sec. 422(c)(3), inserted

provision for application of a similar rule 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 of the transferor in

such transfer.

Subsec. (g)(3). Pub. L. 97-34, Sec. 422(c)(2), substituted as

heading "Failure to make payment of principal or interest" for

"Failure to pay installment", designated existing provisions as

subpar. (A), and in subpar. (A) as so designated, substituted

"Except as provided in subparagraph (B), if any payment of

principal or interest" for "If any installment" and "extension of

time" for "extension of time for the payment of such installment",

and added subpar. (B).

1978 - Subsec. (b)(2)(D). Pub. L. 95-600, Sec. 512(a), added

subpar. (D).

Subsec. (b)(7). Pub. L. 95-600, Sec. 512(b), added par. (7).

EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT

Pub. L. 107-16, title V, Sec. 571(b), June 7, 2001, 115 Stat. 92,

provided that: "The amendments made by this section [amending this

section] shall apply to estates of decedents dying after December

31, 2001."

Pub. L. 107-16, title V, Sec. 572(b), June 7, 2001, 115 Stat. 93,

provided that: "The amendment made by this section [amending this

section] shall apply to estates of decedents dying after December

31, 2001."

Pub. L. 107-16, title V, Sec. 573(b), June 7, 2001, 115 Stat. 93,

provided that: "The amendment made by this section [amending this

section] shall apply to estates of decedents dying after December

31, 2001."

Amendment by Pub. L. 107-16 inapplicable to estates of decedents

dying, gifts made, or generation skipping transfers, after Dec. 31,

2010, and the Internal Revenue Code of 1986 to be applied and

administered to such estates, gifts, and transfers as if such

amendment had never been enacted, see section 901 of Pub. L.

107-16, set out as a note under section 1 of this title.

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-206 effective, except as otherwise

provided, as if included in the provisions of the Taxpayer Relief

Act of 1997, Pub. L. 105-34, to which such amendment relates, see

section 6024 of Pub. L. 105-206, set out as a note under section 1

of this title.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-34 applicable to estates of decedents

dying after Dec. 31, 1997, with special rule in case of estate of

any decedent dying before Jan. 1, 1998, with respect to which there

is an election under section 6166 of this title, see section 503(d)

of Pub. L. 105-34, set out as a note under section 163 of this

title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-514 applicable to generation-skipping

transfers (within the meaning of section 2611 of this title) made

after Oct. 22, 1986, except as otherwise provided, see section 1433

of Pub. L. 99-514, set out as an Effective Date note under section

2601 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by section 544(b)(4) of Pub. L. 98-369 applicable to

estates of decedents which are required to file returns on a date

(including any extensions) after July 18, 1984, see section 544(d)

of Pub. L. 98-369, set out as a note under section 2002 of this

title.

Section 1021(e) of Pub. L. 98-369, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(1) In general. - The amendments made by this section [amending

this section] shall apply with respect to estates of decedents

dying after the date of the enactment of this Act [July 18, 1984].

"(2) Special rule. -

"(A) In general. - At the election of the executor, if -

"(i) a corporation has 15 or fewer shareholders on June 22,

1984, and at all times thereafter before the date of the

decedent's death, and

"(ii) stock of such corporation is included in the gross

estate of the decedent,

then all other corporations all of the stock of which is owned

directly or indirectly by the corporation described in clauses

(i) and (ii) shall be treated as one corporation for purposes of

section 6166 of the Internal Revenue Code of 1986 [formerly

I.R.C. 1954].

"(B) Effect of election. - Any executor who elects the

application of this paragraph shall be treated as having made the

election under paragraph (8) of section 6166(b) of such Code."

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 97-448 effective, except as otherwise

provided, as if it had been included in the provision of the

Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such

amendment relates, see section 109 of Pub. L. 97-448, set out as a

note under section 1 of this title.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 422(f) of Pub. L. 97-34 provided that:

"(1) In general. - Except as provided in paragraph (2), the

amendments made by this section [amending this section and sections

303, 2011, 2204, 2621, 6161, 6324A, 6503, and 7403 of this title

and repealing section 6166A of this title] shall apply to the

estates of decedents dying after December 31, 1981.

"(2) Acceleration by reason of subsequent death. - The amendment

made by subsection (c)(3) [amending this section] shall apply to

transfers after December 31, 1981."

EFFECTIVE DATE OF 1978 AMENDMENT

Section 512(c) of Pub. L. 95-600 provided that: "The amendments

made by this section [amending this section] shall apply with

respect to the estates of decedents dying after the date of the

enactment of this Act [Nov. 6, 1978]."

EFFECTIVE DATE

Section 2004(g) of Pub. L. 94-455 provided that: "The amendments

made by this section [enacting this section and section 6324A of

this title and amending sections 303, 2011, 2204, 6136, 6161, 6503,

6601, and 7403 of this title] shall apply to the estates of

decedents dying after December 31, 1976."

LAND DIVERTED UNDER 1983 PAYMENT-IN-KIND PROGRAM

Land diverted from production of agricultural commodities under a

1983 payment-in-kind program to be treated, for purposes of this

section, as used during the 1983 crop year by qualified taxpayers

in the active conduct of the trade or business of farming, with

qualified taxpayers who materially participate in the diversion and

devotion to conservation uses under a 1983 payment-in-kind program

to be treated as materially participating in the operation of such

land during the 1983 crop year, see section 3 of Pub. L. 98-4, set

out as a note under section 61 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 163, 303, 2011, 2032A,

2035, 2053, 2056A, 2057, 2058, 6324A, 6503, 6601, 7403, 7422, 7479,

7481 of this title.

-End-

-CITE-

26 USC [Sec. 6166A 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter B - Extensions of Time for Payment

-HEAD-

[Sec. 6166A. Repealed. Pub. L. 97-34, title IV, Sec. 422(d), Aug.

13, 1981, 95 Stat. 315]

-MISC1-

Section, added Pub. L. 85-866, title II, Sec. 206(a), Sept. 2,

1958, 72 Stat. 1681, Sec. 6166; amended Pub. L. 93-625, Sec.

7(d)(2), (3), Jan. 3, 1975, 88 Stat. 2115; renumbered Sec. 6166A

and amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), title

XX, Sec. 2004(a), Oct. 4, 1976, 90 Stat. 1834, 1862, provided for

an extension of time for payment of estate tax where estate

consists largely of interest in closely held business.

EFFECTIVE DATE OF REPEAL

Repeal applicable to estates of decedents dying after Dec. 31,

1981, see section 422(f)(1) of Pub. L. 97-34, set out as an

Effective Date of 1981 Amendment note under section 6166 of this

title.

-End-

-CITE-

26 USC Sec. 6167 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle F - Procedure and Administration

CHAPTER 62 - TIME AND PLACE FOR PAYING TAX

Subchapter B - Extensions of Time for Payment

-HEAD-

Sec. 6167. Extension of time for payment of tax attributable to

recovery of foreign expropriation losses

-STATUTE-

(a) Extension allowed by election

If -

(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 third 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

If a corporation has a recovery of a foreign expropriation loss

to which section 1351 applies and if an election is not made under

subsection (a), the Secretary may, upon finding that the payment of

the tax attributable to such recovery at the time otherwise

provided in this subtitle would result in undue hardship, extend

the time for payment of such tax for a reasonable period or periods

not in excess of 9 years from the date on which such tax is

otherwise payable.

(c) Acceleration of payments

If -

(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 third 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

If an election is made under subsection (a), and a deficiency

attributable to the recovery of a foreign expropriation loss has

been assessed, the deficiency shall be prorated to such

installments. The part of the deficiency so prorated to any

installment the date for payment of which has not arrived shall be

collected at the same time as, and as part of, such installment.

The part of the deficiency so prorated to any installment the date

for payment of which has arrived shall be paid upon notice and

demand from the Secretary. 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.

(e) Time for payment of interest

If the time for payment for any amount of tax has been extended

under this section, interest payable under section 6601 on any

unpaid portion of such amount shall be paid annually at the same

time as, and as part of, each installment payment of the tax.

Interest, on that part of a deficiency prorated under this section

to any installment the date for payment of which has not arrived,

for the period before the date fixed for the last installment

preceding the assessment of the deficiency, shall be paid upon

notice and demand from the Secretary.

(f) Tax attributable to recovery of foreign expropriation loss

For 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

If any installment under this section is not paid on or before

the date fixed for its payment by this section (including any

extension of time for the payment of such installment), the unpaid

portion of the tax payable in installments shall be paid upon

notice and demand from the Secretary.

(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).

-SOURCE-

(Added Pub. L. 89-384, Sec. 1(d), Apr. 8, 1966, 80 Stat. 102;

amended Pub. L. 93-625, Sec. 7(d)(2), (3), Jan. 3, 1975, 88 Stat.

2115; Pub. L. 94-455, title XIX, Secs. 1902(b)(2)(B),

1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1806, 1834.)

-MISC1-

AMENDMENTS

1976 - Subsecs. (a), (b), (d), (e), (g). Pub. L. 94-455, Sec.

1906(b)(13)(A), struck out "or his delegate" after "Secretary".

Subsec. (h). Pub. L. 94-455, Secs. 1902(b)(2)(B), 1906(b)(13)(A),

substituted "section 6503(e)" for "section 6503(f)", and struck out

"or his delegate" after "Secretary".

1975 - Subsec. (e). Pub. L. 93-625, Sec. 7(d)(2), struck out

provision that in applying section 6601(j) (relating to the

application of the 4-percent interest rate in the case of

recoveries of foreign expropriation losses to which this section

applies) in the case of a deficiency, the entire amount which was

prorated to installments under this section shall be treated as an

amount of tax the payment of which was extended under this section.

Subsec. (h). Pub. L. 93-625, Sec. 7(d)(3), struck out par. (1)

providing a cross reference for payment of interest at 4 percent

per annum for period of an extension under section 6601(j) of this

title, and redesignated pars. (2) and (3) as (1) and (2),

respectively.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by section 1902(b)(2)(B) of Pub. L. 94-455 applicable

to estates of decedents dying after Oct. 4, 1976, see section

1902(c)(1) of Pub. L. 94-455, set out as a note under section 2011

of this title.

EFFECTIVE DATE OF 1975 AMENDMENT

Amendment by Pub. L. 93-625 effective July 1, 1975, and

applicable to amounts outstanding on such date or arising

thereafter, see section 7(e) of Pub. L. 93-625, set out as an

Effective Date note under section 6621 of this title.

EFFECTIVE DATE

Section applicable with respect to amounts received after Dec.

31, 1964, in respect of foreign expropriation losses (as defined in

section 1351(b) of this title) sustained after Dec. 31, 1958, see

section 2 of Pub. L. 89-384, set out as a note under section 1351

of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6503 of this title.

-End-