Sec. 30544. Extension of time for payment of tax
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Subpart B of chapter 62 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: In the case of any gain with respect to an eligible capital asset that is recognized under section 1261 by reason of the death of the taxpayer, the taxpayer may elect to pay part or all of tax imposed on such gain in 2 or more (but not exceeding 15) equal installments. If an election is made under paragraph (1), the first installment shall be paid not later than the date on which the tax for the taxable year in which the gain described in paragraph
(1)occurs is due, 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. For purposes of this section, the term eligible capital asset means any capital asset other than personal property of a type which is actively traded (within the meaning of section 1092(d)(1)). The amount of tax to which this section applies shall not exceed the excess of— the tax computed under chapter 1 (determined after application of section 1261), over the tax computed under chapter 1 (determined without regard to section 1261). Any election under subsection
(a)shall be made not later than the time prescribed by section 6072 for filing the return of tax imposed under chapter 1 (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. If an election is made under subsection
(a)to pay any part of the tax imposed under chapter 1 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. If the time for payment of any amount of tax has been extended under this section, interest payable under section 6601 on any unpaid portion shall be paid annually at the same time as, and as part of, each installment payment of the tax. The Secretary shall prescribe such regulations as may be necessary to the application of this section. For authority of the Secretary to require security in the case of an extension under this section, see section 6165. For provisions relating to interest on tax payable in installments under this section, see subsection
(k)of section 6601. . The table of sections for subpart B of chapter 62 is amended by adding at the end the following new item: Sec. 6168. Extension of time for payment of capital gains on certain assets realized by reason of death. . Section 6601 of the Internal Revenue Code of 1986 is amended by redesignating subsection
(k)as subsection
(l)and by inserting after subsection
(j)the following new subsection: If the time for payment of an amount of tax imposed by chapter 11 is extended as provided in section 6168, in lieu of the annual rate provided by subsection (a), interest shall be paid at a rate equal to 45 percent of the annual rate provided by subsection (a). For purposes of this subsection, the amount of any deficiency which is prorated to installments payable under section 6168 shall be treated as an amount of tax payable in installments under such section. .