Page:United States Statutes at Large Volume 72 Part 1.djvu/1726

 1884

PUBLIC LAW 86-886H9EPT. 3, 1968

[72 S T A T.

"(2) T I M E OF ELECTION.—An election under this subsection shall be made not later than 60 days after issuance of notice and demand by the Secretary or his delegate for the payment of the deficiency, and shall be made in such manner as the Secretary or his delegate 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 (b)) be prorated to the installments which would have been due if an election had been timely made under this section 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. "(4) APPLICATION OF SUBSECTION (h)(2).—In the case of an election under this subsection, subsection (h)(2) shall not apply with respect to undistributed net income for any taxable year ending before January 1, 1960. "(]) REGULATIONS.—The Secretary or his delegate shall prescribe such regulations as may be necessary to the application of this section. " (k) CROSS REFERENCES.— "(1) INTEREST.—

"For provisions requiring the payment of interest at the rate of 4 percent per annum for the period of an extension, see section 6601 (b). "(2)

SECURITY.—

"For authority of the Secretary or his delegate to require security in the case of an extension under this section, see section 6165. "(3)

26 USC 6161.

26 USC 6151.

PERIOD OF LIMITATION.—

"For extension of the period of limitation in the case of an extension under this section, see section 6503(d)." (b) CLERICAL AMENDMENT.—The table of sections for subchapter B of chapter 62 of the Internal Revenue Code of 1954 is amended by adding at the end thereof the following: "Sec. 6166. Extension of time for payment of estate tax where estate consists largely of interest in closely held business." (c) HARDSHIP EXTENSION.—Section 6161(a)(2) of such Code (relating to extension of time for paying estate tax in the case of undue hardship) is amended to read as follows: "(2) ESTATE TAX.—If the Secretary or his delegate finds— " (A) that the payment, on the due date, of any part of the amount determined by the executor as the tax imposed by chapter 11, " (B) that the payment, on the date fixed for the payment of any installment under section 6166, of any part of such installment (including any part of a deficiency prorated to an installment the date for payment of which had not arrived), or " (C) that the payment upon notice and demand of any part of a deficiency prorated under the provisions of section 6166 to installments the date for payment of which had arrived, would result in undue hardship to the estate, he may extend the time for payment for a reasonable period not in excess of 10 years from the date prescribed by section 6151(a) for payment of the tax."

�