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SEC. 6166(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. Bond Requirement
Section 6166(d) provides that “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
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Last modified: November 10, 2007