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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5488 Introduced in House (IH)]

109th CONGRESS
  2d Session
                                H. R. 5488

  To amend the Internal Revenue Code of 1986 to extend the period of 
  limitation for filing a claim for credit or refund of an estate tax 
overpayment attributable to litigation continuing after the return for 
                          the estate is filed.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 25, 2006

 Mr. Aderholt introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
  To amend the Internal Revenue Code of 1986 to extend the period of 
  limitation for filing a claim for credit or refund of an estate tax 
overpayment attributable to litigation continuing after the return for 
                          the estate is filed.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Estate Litigation Fairness Act''.

SEC. 2. EXTENDING PERIOD OF LIMITATION ON FILING CLAIM FOR CREDIT OR 
              REFUND OF ESTATE TAX OVERPAYMENTS ATTRIBUTABLE TO 
              LITIGATION CONTINUING AFTER THE RETURN FOR THE ESTATE IS 
              FILED.

    (a) In General.--Section 6511 of the Internal Revenue Code of 1986 
(relating to limitations on credit or refund) is amended by 
redesignating subsection (i) as subsection (j) and by inserting after 
subsection (h) the following new subsection:
    ``(i) Special Rule for Estate Tax Overpayments Attributable to 
Litigation Continuing After the Return for the Estate Is Filed.--
            ``(1) Extension of period of limitation.--If the claim for 
        credit or refund relates to an overpayment of tax imposed by 
        chapter 11 by reason of an expense--
                    ``(A) which is paid or incurred after the return 
                for the estate is filed, and
                    ``(B) which would not have been so paid or incurred 
                but for litigation continuing after the filing of such 
                return,
        then the 3-year period of limitation described in subsections 
        (a) and (b) shall not expire before the end of the 4-year 
        period beginning on the first date such litigation is no longer 
        subject to judicial review.
            ``(2) Amount of credit or refund.--In the case of a claim 
        described in paragraph (1), the amount of the credit or refund 
        may exceed the portion of the tax paid within the period 
        prescribed in subsection (b)(2).
            ``(3) Termination.--This subsection shall not apply to 
        estates of decedents dying after the last day of the 1-year 
        period beginning on the date of the enactment of this 
        subsection.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to estates of decedents dying after October 1, 1998.
            (2) Waiver of statute of limitations.--If the credit or 
        refund of any overpayment of tax resulting from the amendments 
        made by subsection (a) is prevented at any time before the 
        close of the 1-year period beginning on the date of the 
        enactment of this Act by the operation of any law or rule of 
        law (including res judicata), refund or credit of such 
        overpayment (to the extent attributable to such amendments) 
        may, nevertheless, be made or allowed if claim therefor is 
        filed before the close of such 1-year period.
                                 <all>
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