26 U.S.C. § 7479 — Declaratory judgments relating to eligibility of estate with respect to installment payments under section 6166
submitted 29 years ago by Pub. L. 105-34 to r/title-26-INTERNAL-REVENUE-CODE · 426 words · no verdicts yet
The Tax Court can rule on whether an estate can pay its taxes in installments under section 6166, or whether that right has ended. Only the estate's executor, or someone who agreed to make the payments, can bring this case. Filing this case also pauses the two-year deadline for a related tax refund suit.
(a) Creation of remedy: If there is a real dispute over the IRS's decision (or failure to decide) on (1) whether an estate can choose installment payments under section 6166 for its estate tax, or (2) whether that installment right has already ended under section 6166(a), the Tax Court* can declare the answer once the right paperwork is filed. This declaration works like, and can be reviewed like, a regular Tax Court decision.
(b) Limitations:
(1) Petitioner: this case can only be filed (A) by the estate's executor, or (B) by anyone who agreed to make the installment payments - but only if every other such person joins the case too.
(2) Exhaustion of administrative remedies: the Tax Court cannot rule unless the petitioner has used up all available IRS appeal options. For an IRS failure to decide, the petitioner counts as exhausted 180 days after asking, as long as they took reasonable, timely steps to get an answer.
(3) Time for bringing action: if the IRS mails its decision by certified or registered mail, the case must be filed before the 91st day after that mailing.
(c) Extension of time to file refund suit: the normal two-year deadline in section 6532(a)(1) for filing a refund lawsuit is paused for 90 days after the IRS mails its notice, and - if a Tax Court case was filed - stays paused until the Tax Court's decision becomes final.
In a case of actual controversy involving a determination by the Secretary* of (or a failure by the Secretary to make a determination with respect to)—
whether an election may be made under section 6166 (relating to extension of time for payment of estate tax where estate consists largely of interest in closely held business) with respect to an estate (or with respect to any property included therein), or
whether the extension of time for payment of tax provided in section 6166(a) has ceased to apply with respect to an estate (or with respect to any property included therein),
upon the filing of an appropriate pleading, the Tax Court* may make a declaration with respect to whether such election may be made or whether such extension has ceased to apply. Any such declaration shall have the force and effect of a decision of the Tax Court and shall be reviewable as such.
A pleading may be filed under this section, with respect to any estate, only—
by the executor of such estate, or
by any person who has assumed an obligation to make payments under section 6166 with respect to such estate (but only if each other such person is joined as a party).
The court shall not issue a declaratory judgment or decree under this section in any proceeding unless it determines that the petitioner has exhausted all available administrative remedies within the Internal Revenue Service. A petitioner shall be deemed to have exhausted its administrative remedies with respect to a failure of the Secretary to make a determination at the expiration of 180 days after the date on which the request for such determination was made if the petitioner has taken, in a timely manner, all reasonable steps to secure such determination.
If the Secretary sends by certified or registered mail notice of his determination as described in subsection (a) to the petitioner, no proceeding may be initiated under this section unless the pleading is filed before the 91st day after the date of such mailing.
The 2-year period in section 6532(a)(1) for filing suit for refund after disallowance of a claim shall be suspended during the 90-day period after the mailing of the notice referred to in subsection (b)(3) and, if a pleading has been filed with the Tax Court under this section, until the decision of the Tax Court has become final.
Source credit: (Added Pub. L. 105–34, title V, § 505(a), Aug. 5, 1997, 111 Stat. 854; amended Pub. L. 105–206, title III, § 3104(b), title VI, § 6007(d), July 22, 1998, 112 Stat. 732, 809.)
- 1997Enacted · Pub. L. 105-34 · 111 Stat. 854
- 1998Amended · Pub. L. 105-206 · 112 Stat. 732, 809
A history note hasn’t been published yet. The record shows enactment by Pub. L. 105-34 on 1997-08-05.
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