2012 New York Consolidated Laws
TAX - Tax
Article 26 - ESTATE TAX
Part 4 - (990 - 999) PROCEDURE AND ADMINISTRATION
997 - Extensions of time for payment of estate tax where estate consists largely of interest in closely held businesses.

 
    §  997.  Extensions  of  time  for  payment of estate tax where estate
  consists largely of interest in closely held businesses. The  provisions
  of section 6166 of the internal revenue code shall apply to this section
  to the same extent as if such section of such code were contained in and
  made part of this section (whether or not a federal estate tax return is
  required to be filed) except as provided herein:
    (a)  The  phrase  "adjusted  gross  estate" shall be read as "adjusted
  federal gross estate determined without reference to paragraphs (1)  and
  (2)  of  subsection  (a)  of  section  nine  hundred fifty-four" of this
  article.
    (b) The phrase "section 2001" shall be read as "section  nine  hundred
  fifty-two or section nine hundred sixty" of this article.
    (c)  The phrase "the date prescribed by section 6151(a) for payment of
  the tax" shall be read as "the date prescribed by this article  for  the
  payment of the tax (without regard to any extension of time)".
    (d)  The  term  "secretary" shall be read as "commissioner of taxation
  and finance".
    (e) Election. The election under this section  shall  not  be  allowed
  unless  a  similar  election  was  made  and allowed with respect to the
  federal estate tax return required to be filed under the  provisions  of
  the internal revenue code. If such election was made for the purposes of
  the  federal  estate  tax,  the  time for making the election under this
  article shall be the same as is required under the federal  estate  tax.
  Where no federal estate tax return is required to be filed, the election
  with  respect  to  the  tax  imposed under this article shall be made no
  later than the date prescribed for the filing of the return  under  this
  article  (including  extensions  thereof)  or any time thereafter as the
  commissioner of taxation and finance may by regulation prescribe.
    (f) The commissioner of taxation and finance may, at any time, require
  a bond to be filed with him, which bond has  been  issued  by  a  surety
  company  approved  by  the  superintendent  of  financial services as to
  solvency and responsibility and authorized to transact business in  this
  state  or  other  security acceptable to such commissioner, in an amount
  not exceeding twice the amount for which the time for payment  has  been
  extended under this section, to secure the payment of the estate tax and
  interest,  the  time  for  payment of which has been extended under this
  section.
    (g) If an acceleration of payment  occurs  with  respect  to  the  tax
  imposed  by  this  article, the extension of time for payment of the tax
  imposed by this article shall cease to apply and any unpaid  portion  of
  the  tax  payable  in  installments shall be paid upon notice and demand
  from the commissioner of taxation and finance. If any such  acceleration
  of  payment  is  avoided  by a payment within six months of the due date
  thereof, then the provisions of subsection  (j)  of  this  section  with
  respect  to  a  two  percent  rate  of  interest shall not apply to said
  payment and there is imposed a penalty of five percent of the amount  of
  such  payment  multiplied by the number of months, or fractions thereof,
  after the due date of the payment  and  before  payment  is  made.  Such
  acceleration of payment shall occur if:
    (1)  any installment of estate tax imposed by this article is not paid
  on or before the date fixed for its payment (including any extension  of
  time for the payment of such installment), or
    (2) the executor has been notified by the commissioner of taxation and
  finance  that  a bond or other security is required, but no such bond or
  other security has been filed  within  thirty  days  from  the  date  of
  mailing of such notification, or
    (3)  an  acceleration  of  payment  has  occurred  with respect to the
  election by the executor to pay part or all of the federal estate tax in

  installments or, where no federal estate tax return is  required  to  be
  filed,  an  acceleration  of  payment  has  occurred  by  virtue  of the
  provisions of subsection (g) of section 6166  of  the  internal  revenue
  code.
    (h) The commissioner of taxation and finance may, for reasonable cause
  and  if  his interests would not be jeopardized thereby, extend the time
  for payment of any  part  of  any  installment  under  this  subsection,
  including  any  part  of  a deficiency prorated to any installment under
  this subsection, for a reasonable period (1) not in excess of ten  years
  from the date prescribed for the filing of the return under this article
  (without  regard  to  any  extension of time to file) or (2) if the date
  prescribed for such filing is earlier than  the  date  which  is  twelve
  months after the due date of the last installment, such later date.
    (i)  If  the  time  for payment of any amount of tax has been extended
  under this subsection, interest shall be paid annually together with the
  installment of tax on any unpaid portion of such amount  (including  the
  amount  of  any deficiency), at the rate prescribed in subsection (b) of
  section nine  hundred  seventy-six  of  this  article  with  respect  to
  extensions  of time for payment of estate tax (other than the extensions
  of time provided for in this section) or as otherwise  provided  for  in
  subsection (j) of this section.
    (j)  If  the  time  for payment of any amount of tax has been extended
  under this section, the provisions  of  section  6166  of  the  internal
  revenue  code  applicable  to  the  payment  of interest are modified as
  follows:
    (1) Interest on the two percent portion of such amount shall  be  paid
  at  the rate of two percent per annum. For purposes of this section, the
  amount of any deficiency which is prorated to installments payable under
  this  section,  shall  be  treated  as  an  amount  of  tax  payable  in
  installments under such section.
    (2)  For  purposes  of  this paragraph, the term "two percent portion"
  means the lesser of fifty-four thousand dollars or the amount of the tax
  imposed by this article which is extended as provided in this section.
    (3) If the amount of tax imposed by this  article  which  is  extended
  exceeds the two percent portion, any payment of a portion of such amount
  shall,  for  purposes  of  computing  interest  for  periods  after such
  payment, be treated as reducing the two percent  portion  by  an  amount
  which  bears  the same ratio to the amount of such payment as the amount
  of the two percent portion (determined without regard to this paragraph)
  bears to the amount of tax which is extended.
    (4) Interest on any  portion  of  the  amount  of  tax  which  is  not
  includible in the two percent portion of such amount shall be payable at
  the rate provided for in subsection (i) of this section.
    (5)  (A)  Interest  payable on any unpaid portion of the amount of tax
  due attributable to the first five years after the date  prescribed  for
  payment of the tax shall be paid annually;
    (B)  interest  payable  on  any  unpaid  portion of such amount of tax
  attributable to any period after the five year  period  referred  to  in
  subparagraph  (A)  of  this paragraph shall be paid annually at the same
  time as and as part of, each installment payment of the tax;
    (C) in the case of a deficiency to which  subsection  (e)  of  section
  6166  of the internal revenue code applies is determined after the close
  of the five  year  period  referred  to  in  subparagraph  (A)  of  this
  paragraph,  interest attributable to such five year period, and interest
  assigned under subparagraph (B) of this paragraph  to  any  installment,
  the  date  of payment of which has arrived on or before the date of such
  determination,  shall  be  paid  upon  notice  and   demand   from   the
  commissioner of taxation and finance; and

    (D)  if  the  executor  has selected a period shorter than five years,
  such shorter period shall be substituted for five years in subparagraphs
  (A), (B) and (C) of this paragraph. Any period of time selected for  the
  purposes of the tax under this article shall in no event be greater than
  the period of time selected for the purpose of the estate tax imposed by
  the internal revenue code.
    (k)  The  lien  of  the  tax  provided  for  in  section  nine hundred
  eighty-two of this article shall be applicable to the same extent as  if
  no  election  had been made to extend the time for payment of estate tax
  under this section.