26 U.S.C. § 6167 — Extension of time for payment of tax at-

Page 3513 TITLE 26—INTERNAL REVENUE CODE § 6167 section and sections 303, 2011, 2204, 2621, 6161, 6324A, 6503, and 7403 of this title and repealing section 6166A of this title] shall apply to the estates of decedents dying after December 31, 1981. ‘‘(2) ACCELERATION BY REASON OF SUBSEQUENT DEATH.—The amendment made by subsection (c)(3) [amending this section] shall apply to transfers after December 31, 1981.’’ EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95–600, title V, § 512(c), Nov. 6, 1978, 92 Stat. 2883, provided that: ‘‘The amendments made by this section [amending this section] shall apply with re- spect to the estates of decedents dying after the date of the enactment of this Act [Nov. 6, 1978].’’ EFFECTIVE DATE Pub. L. 94–455, title XX, § 2004(g), Oct. 4, 1976, 90 Stat. 1872, provided that: ‘‘The amendments made by this section [enacting this section and section 6324A of this title and amending sections 303, 2011, 2204, 6136, 6161, 6503, 6601, and 7403 of this title] shall apply to the es- tates of decedents dying after December 31, 1976.’’ LAND DIVERTED UNDER 1983 PAYMENT-IN-KIND PROGRAM Land diverted from production of agricultural com- modities under a 1983 payment-in-kind program to be treated, for purposes of this section, as used during the 1983 crop year by qualified taxpayers in the active con- duct of the trade or business of farming, with qualified taxpayers who materially participate in the diversion and devotion to conservation uses under a 1983 pay- ment-in-kind program to be treated as materially par- ticipating in the operation of such land during the 1983 crop year, see section 3 of Pub. L. 98–4, set out as a note under section 61 of this title. [§ 6166A. Repealed. Pub. L. 97–34, title IV, § 422(d), Aug. 13, 1981, 95 Stat. 315] Section, added Pub. L. 85–866, title II, § 206(a), Sept. 2, 1958, 72 Stat. 1681, § 6166; amended Pub. L. 93–625, § 7(d)(2), (3), Jan. 3, 1975, 88 Stat. 2115; renumbered § 6166A and amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), title XX, § 2004(a), Oct. 4, 1976, 90 Stat. 1834, 1862, provided for an extension of time for pay- ment of estate tax where estate consists largely of in- terest in closely held business. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to estates of decedents dying after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97–34, set out as an Effective Date of 1981 Amendment note under section 6166 of this title. § 6167. Extension of time for payment of tax at- tributable to recovery of foreign expropria- tion losses (a) Extension allowed by election If— (1) a corporation has a recovery of a foreign expropriation loss to which section 1351 ap- plies, and (2) the portion of the recovery received in money is less than 25 percent of the amount of such recovery (as defined in section 1351(c)) and is not greater than the tax attributable to such recovery, the tax attributable to such recovery shall, at the election of the taxpayer, be payable in 10 equal installments on the 15th day of the fourth month of each of the taxable years following the taxable year of the recovery. Such election shall be made at such time and in such manner as the Secretary may prescribe by regulations. If an election is made under this subsection, the pro- visions of this subtitle shall apply as though the Secretary were extending the time for payment of such tax. (b) Extension permitted by Secretary If a corporation has a recovery of a foreign ex- propriation loss to which section 1351 applies and if an election is not made under subsection (a), the Secretary may, upon finding that the payment of the tax attributable to such recov- ery at the time otherwise provided in this sub- title would result in undue hardship, extend the time for payment of such tax for a reasonable period or periods not in excess of 9 years from the date on which such tax is otherwise payable. (c) Acceleration of payments If— (1) an election is made under subsection (a), (2) during any taxable year before the tax at- tributable to such recovery is paid in full— (A) any property (other than money) re- ceived on such recovery is sold or exchanged, or (B) any property (other than money) re- ceived on any sale or exchange described in subparagraph (A) is sold or exchanged, and (3) the amount of money received on such sale or exchange (reduced by the amount of the tax imposed under chapter 1 with respect to such sale or exchange), when added to the amount of money— (A) received on such recovery, and (B) received on previous sales or exchanges described in subparagraphs (A) and (B) of paragraph (2) (as so reduced), exceeds the amount of money which may be received under subsection (a)(2), an amount of the tax attributable to such recov- ery equal to such excess shall be payable on the 15th day of the fourth month of the taxable year following the taxable year in which such sale or exchange occurs. The amount of such tax so paid shall be treated, for purposes of this section, as a payment of the first unpaid installment or in- stallments (or portion thereof) which become payable under subsection (a) following such tax- able year. (d) Proration of deficiency to installments If an election is made under subsection (a), and a deficiency attributable to the recovery of a foreign expropriation loss has been assessed, the deficiency shall be prorated to such install- ments. 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 part of, such installment. The part of the deficiency so prorated to any install- ment 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. (e) Time for payment of interest If the time for payment for any amount of tax has been extended under this section, interest Page 3514 TITLE 26—INTERNAL REVENUE CODE § 6167 1 Section numbers editorially supplied. payable under section 6601 on any unpaid por- tion of such amount shall be paid annually at the same time as, and as part of, each install- ment payment of the tax. Interest, on that part of a deficiency prorated under this section to any installment the date for payment of which has not arrived, for the period before the date fixed for the last installment preceding the as- sessment of the deficiency, shall be paid upon notice and demand from the Secretary. (f) Tax attributable to recovery of foreign expro- priation loss For purposes of this section, the tax attrib- utable to a recovery of a foreign expropriation loss is the sum of— (1) the additional tax imposed by section 1351(d)(1) on such recovery, and (2) the amount by which the tax imposed under subtitle A is increased by reason of the gain on such recovery which under section 1351(e) is considered as gain on the involun- tary conversion of property. (g) Failure to pay installment If any installment under this section is not paid on or before the date fixed for its payment by this section (including any extension of time for the payment of such installment), the unpaid portion of the tax payable in installments shall be paid upon notice and demand from the Sec- retary. (h) Cross-references (1) Security.—For authority of the Secretary to re- quire security in the case of an extension under this section, see section 6165. (2) Period of limitation.—For extension of the pe- riod of limitation in the case of an extension under this section, see section 6503(e). (Added Pub. L. 89–384, § 1(d), Apr. 8, 1966, 80 Stat. 102; amended Pub. L. 93–625, § 7(d)(2), (3), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94–455, title XIX, §§ 1902(b)(2)(B), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1806, 1834; Pub. L. 114–41, title II, § 2006(a)(2)(D), July 31, 2015, 129 Stat. 457.) Editorial Notes AMENDMENTS 2015—Subsecs. (a), (c). Pub. L. 114–41 substituted ‘‘fourth month’’ for ‘‘third month’’ in concluding provi- sions. 1976—Subsecs. (a), (b), (d), (e), (g). Pub. L. 94–455, § 1906(b)(13)(A), struck out ‘‘or his delegate’’ after ‘‘Sec- retary’’. Subsec. (h). Pub. L. 94–455, §§ 1902(b)(2)(B), 1906(b)(13)(A), substituted ‘‘section 6503(e)’’ for ‘‘section 6503(f)’’, and struck out ‘‘or his delegate’’ after ‘‘Sec- retary’’. 1975—Subsec. (e). Pub. L. 93–625, § 7(d)(2), struck out provision that in applying section 6601(j) (relating to the application of the 4-percent interest rate in the case of recoveries of foreign expropriation losses to which this section applies) in the case of a deficiency, the entire amount which was prorated to installments under this section shall be treated as an amount of tax the payment of which was extended under this section. Subsec. (h). Pub. L. 93–625, § 7(d)(3), struck out par. (1) providing a cross reference for payment of interest at 4 percent per annum for period of an extension under section 6601(j) of this title, and redesignated pars. (2) and (3) as (1) and (2), respectively. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2015 AMENDMENT Amendment by Pub. L. 114–41 applicable to returns for taxable years beginning after Dec. 31, 2015, with spe- cial rule for certain C corporations, see section 2006(a)(3) of Pub. L. 114–41, set out as a note under sec- tion 170 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by section 1902(b)(2)(B) of Pub. L. 94–455 applicable to estates of decedents dying after Oct. 4, 1976, see section 1902(c)(1) of Pub. L. 94–455, set out as a note under section 2012 of this title. EFFECTIVE DATE OF 1975 AMENDMENT Amendment by Pub. L. 93–625 effective 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 Section applicable with respect to amounts received after Dec. 31, 1964, in respect of foreign expropriation losses (as defined in section 1351(b) of this title) sus- tained after Dec. 31, 1958, see section 2 of Pub. L. 89–384, set out as a note under section 1351 of this title. CHAPTER 63—ASSESSMENT Subchapter Sec.1 A. In general .............................................. 6201 B. Deficiency procedures in the case of in- come, estate, gift, and certain excise taxes ................................................... 6211 C. Treatment of partnerships .................... 6221 [D. Repealed] ............................................... Editorial Notes AMENDMENTS 2015—Pub. L. 114–74, title XI, § 1101(a), (b)(2), (c)(2), Nov. 2, 2015, 129 Stat. 625, 637, added item for subchapter C and struck out former items for subchapter C ‘‘Tax treatment of partnership items’’ and subchapter D ‘‘Treatment of electing large partnerships’’. 1997—Pub. L. 105–34, title XII, § 1222(c), Aug. 5, 1997, 111 Stat. 1019, added item for subchapter D. 1996—Pub. L. 104–188, title I, § 1307(c)(3)(C), Aug. 20, 1996, 110 Stat. 1782, struck out item for subchapter D ‘‘Tax treatment of subchapter S items’’. 1982—Pub. L. 97–354, § 4(b), Oct. 19, 1982, 96 Stat. 1692, added item for subchapter D. Pub. L. 97–248, title IV, § 402(b), Sept. 3, 1982, 96 Stat. 667, added item for subchapter C. 1969—Pub. L. 91–172, title I, § 101(j)(63), Dec. 30, 1969, 83 Stat. 532, inserted reference to certain excise taxes in item for subchapter B. Subchapter A—In General Sec. 6201. Assessment authority. 6202. Establishment by regulations of mode or time of assessment. 6203. Method of assessment. 6204. Supplemental assessments. 6205. Special rules applicable to certain employ- ment taxes. 6206. Special rules applicable to excessive claims under certain sections. 6207. Cross references. Editorial Notes AMENDMENTS 2005—Pub. L. 109–59, title XI, § 11163(d)(4), Aug. 10, 2005, 119 Stat. 1975, substituted ‘‘certain sections’’ for ‘‘sections 6420, 6421, and 6427’’ in item 6206.