Page:United States Statutes at Large Volume 95.djvu/341

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 315

(c) ACCELERATION OF PAYMENT.—

(1) AMOUNT OF DISPOSITION.—Subparagraph (A) of section

6166(g)(1) (relating to acceleration of payment in the case of 26 USC 6166. disposition of interest or withdrawal of funds from business) is amended to read as follows: "(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sold, exchanged, or otherwise disposed of, or "(II) money and other property attributable to such an interest is withdrawn from such trade or business, and "(ii) the aggregate of such distributions, sales, exchanges, or other dispositions and withdrawals equals or exceeds 50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." (2) FAILURE TO MAKE PAYMENTS.—Paragraph (3) of section

6166(g) (relating to failure to pay installments) is amended to read as follows: "(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." 26 USC 6671. (3) N o DISQUAUFICATION IN CASE OF SUBSEQUENT DEATHS.—

Subparagraph (D) of section 6166(g)(l) is amended by adding at the end thereof the following new sentence: "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." (d) REPEAL OF SECTION 6166A.—Section 6166A (relating to exten- Repeal. sion of time for payment of estate tax where estate consists largely of 26 USC 6166A. interest in a closely held business) is hereby repealed. (e) TECHNICAL AMENDMENTS.—

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