NY Tax L § 997 (2021)
2021 New York Laws TAX - Tax Article 26 - Estate Tax Part 4 - 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), (2) and (3) 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.