-CITE-
26 USC CHAPTER 62 - TIME AND PLACE FOR PAYING TAX 01/19/04
-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-
-CITE-
26 USC Subchapter A - Place and Due Date for Payment of
Tax 01/19/04
-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-
SUBCHAPTER A - PLACE AND DUE DATE FOR PAYMENT OF TAX
-MISC1-
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 Repealed.]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 Repealed.]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-
-CITE-
26 USC Sec. 6151 01/19/04
-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. 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.)
-MISC1-
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-
-CITE-
26 USC Sec. 6152 01/19/04
-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. 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-
-CITE-
26 USC Sec. 6153 01/19/04
-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. 6153. Repealed. Pub. L. 98-369, div. A, title IV, Sec.
412(a)(3), July 18, 1984, 98 Stat. 792]
-MISC1-
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-
-CITE-
26 USC Sec. 6154 01/19/04
-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. 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-
-CITE-
26 USC Sec. 6155 01/19/04
-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. 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-
-CITE-
26 USC Sec. 6156 01/19/04
-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. 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-
-CITE-
26 USC Sec. 6157 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 01/19/04
-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 i |
