Page:United States Statutes at Large Volume 90 Part 2.djvu/398

 90 STAT. 1866

PUBLIC LAW 94-455—OCT. 4, 1976 the decedeiifs will, the applicable law of descent and distribution, or a t r u s t created by the decedent. " (2) UNDISTRIBUTED INCOME o r ESTATE.—

26 USC 643.

Ante, p. 1846.

" (A) I f a n 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 r e t u r n for such taxable year (including extensions thereof), p a y an amount equal to such undistributed net income i n 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 paragraph s (1) and (2) of section 661(a) (relating to deductions for distributions, e t c.); " ( i i) the amount of tax imposed for the taxable year on the estate under chapter 1; and " ( i i i) 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). " (3) F A I L U R E TO PAY INSTALLMENT.—If any installment under

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this section is not paid on or before the date fixed for ment by this section (including any extension of time payment of such installment), the unpaid portion of payable in installments shall be paid upon notice and from the Secretary.

its payfor the the tax demand

" (h) ELECTION I N CASE OF CERTAIN D E F I C I E N C I E S. — " (1) IN GENERAL.—If—

" (A) a deficiency i n 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) 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 for the payment of the deficiency, and shall be made in such manner as the Secretary shall by regulations prescribe. " (3) E F F E C To r ELECTION ON P A Y M E N T. — I f an election is m a d e

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 h a d been timely made under subsection (a) a t 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 p a i d at the time of the making of the election under this subsection. The portion of the deficiency so prorated to installments the date

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