Amended 1969, 1975
- 1975 Pub. L. 93-625 Pub. L. 93–625, § 7(b)(1), struck out subsec. (b) relating to extensions of time for payment of estate tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively, struck out subsec. (j) relating to extensions of time for payment of tax attributable to recoveries of foreign expropriation losses, and redesignated subsecs. (k) and (l) as (i) and (j), respectively.
- 1969 Pub. L. 91-53 Pub. L. 91–53 added subsec. (k) and redesignated former subsec. (k) as (l).
Cases: Baptiste v. Commissioner, 29 F.3d 1533 (11th Cir. 1994)
Final rules 1
(a) General rule If any amount of tax imposed by this title (whether required to be shown on a return, or to be paid by stamp or by some other method) is not paid on or before the last date prescribed for payment, interest on such amount at the underpayment rate established under section 6621 shall be paid for the period from such last date to the date paid.
Amended 1975, 1986
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1511(c)(11), substituted “the underpayment rate established under section 6621” for “an annual rate established under section 6621”.
- 1975 Pub. L. 93-625 Pub. L. 93–625, § 7(a)(2)(A), substituted “an annual rate established under section 6621” for “the rate of 6 percent per annum”.
Cited by 10
(b) Last date prescribed for payment For purposes of this section, the last date prescribed for payment of the tax shall be determined under chapter 62 with the application of the following rules:
Amended 1958, 1975, 1986, 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141 redesignated pars. (3) to (5) as (2) to (4), respectively, and struck out former par. (2) which related to dates prescribed for installment payments.
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1512(a), added par. (4) and redesignated former par. (4) as (5).
- 1975 Pub. L. 93-625 Pub. L. 93–625, § 7(b)(1), struck out subsec. (b) relating to extensions of time for payment of estate tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively, struck out subsec. (j) relating to extensions of time for payment of tax attributable to recoveries of foreign expropriation losses, and redesignated subsecs. (k) and (l) as (i) and (j), respectively.
- 1958 Pub. L. 85-866 Pub. L. 85–866, §§ 66(c), 206(e), inserted reference to section 6166, and substituted “if the time for payment of an amount of such tax is postponed or extended as provided by section 6163” for “if postponement of the payment of an amount of such tax is permitted by section 6163(a)”.
Cited by 5
(1) Extensions of time disregarded The last date prescribed for payment shall be determined without regard to any extension of time for payment or any installment agreement entered into under section 6159.
Amended 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 6234(b)(1), inserted “or any installment agreement entered into under section 6159” after “time for payment”.
Cited by 1
(2) Jeopardy The last date prescribed for payment shall be determined without regard to any notice and demand for payment issued, by reason of jeopardy (as provided in chapter 70), prior to the last date otherwise prescribed for such payment.
Amended 1976, 1986, 1988, 1990, 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141 redesignated pars. (3) to (5) as (2) to (4), respectively, and struck out former par. (2) which related to dates prescribed for installment payments.
- 1990 Pub. L. 101-508 Pub. L. 101–508 struck out “or 6158(a)” after “6156(a)” in introductory provisions, struck out “or 6158(a), as the case may be” after “6156(a)” in subpar. (A), and struck out at end “For purposes of subparagraph (A), section 6158(a) shall be treated as providing that the date prescribed for payment of each installment shall not be later than the date prescribed for payment of the 1985 installment.”
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1018(u)(42), made technical correction to directory language of Pub. L. 99–514, § 1404(c)(3), see 1986 Amendment note below.
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1404(c)(3), as amended by Pub. L. 100–647, § 1018(u)(42), substituted “6156(a) or 6158(a)” for “6152(a), 6156(a), or 6158(a)” in introductory provisions and “6156(b) or 6158(a)” for “6152(b), 6156(b), or 6158(a)” in subpar. (A).
- 1976 Pub. L. 94-452 Pub. L. 94–452 substituted “, 6156(a), or 6158(a)” for “or 6156(a)” and “, 6156(b), or 6158(a)” for “or 6156(b)” and inserted requirement that for purposes of subparagraph (A), section 6158(a) of this title shall be treated as providing that the date prescribed for payment of each installment shall not be later than the date prescribed for payment of the 1985 installment.
(3) Accumulated earnings tax In the case of the tax imposed by section 531 for any taxable year, the last date prescribed for payment shall be deemed to be the due date (without regard to extensions) for the return of tax imposed by subtitle A for such taxable year.
Amended 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141 redesignated pars. (3) to (5) as (2) to (4), respectively, and struck out former par. (2) which related to dates prescribed for installment payments.
(4) Last date for payment not otherwise prescribed In the case of taxes payable by stamp and in all other cases in which the last date for payment is not otherwise prescribed, the last date for payment shall be deemed to be the date the liability for tax arises (and in no event shall be later than the date notice and demand for the tax is made by the Secretary).
Amended 1976, 1986, 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141 redesignated pars. (3) to (5) as (2) to (4), respectively, and struck out former par. (2) which related to dates prescribed for installment payments.
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1512(a), added par. (4) and redesignated former par. (4) as (5).
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
(c) Suspension of interest in certain income, estate, gift, and certain excise tax cases In the case of a deficiency as defined in section 6211 (relating to income, estate, gift, and certain excise taxes), if a waiver of restrictions under section 6213(d) on the assessment of such deficiency has been filed, and if notice and demand by the Secretary for payment of such deficiency is not made within 30 days after the filing of such waiver, interest shall not be imposed on such deficiency for the period beginning immediately after such 30th day and ending with the date of notice and demand and interest shall not be imposed during such period on any interest with respect to such deficiency for any prior period.
Amended 1961, 1975, 1976, 1980, 1986, 1997, 2015
- 2015 Pub. L. 114-74 Pub. L. 114–74 struck out at end “In the case of a settlement under section 6224(c) which results in the conversion of partnership items to nonpartnership items pursuant to section 6231(b)(1)(C), the preceding sentence shall apply to a computational adjustment resulting from such settlement in the same manner as if such adjustment were a deficiency and such settlement were a waiver referred to in the preceding sentence.”
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1242(a), inserted at end “In the case of a settlement under section 6224(c) which results in the conversion of partnership items to nonpartnership items pursuant to section 6231(b)(1)(C), the preceding sentence shall apply to a computational adjustment resulting from such settlement in the same manner as if such adjustment were a deficiency and such settlement were a waiver referred to in the preceding sentence.”
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1564(a), inserted “and interest shall not be imposed during such period on any interest with respect to such deficiency for any prior period”.
- 1980 Pub. L. 96-223 Pub. L. 96–223 substituted “certain excise tax cases” for “chapter 41, 42, 43, or 44 tax cases” in heading.
- 1976 Pub. L. 94-455 Pub. L. 94–455, §§ 1307(d)(2)(H), 1605(b)(10), substituted in heading “chapter 41, 42” for “chapter 42” and “43, or 44” for “or 43”.
- 1975 Pub. L. 93-625 Pub. L. 93–625, § 7(b)(1), struck out subsec. (b) relating to extensions of time for payment of estate tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively, struck out subsec. (j) relating to extensions of time for payment of tax attributable to recoveries of foreign expropriation losses, and redesignated subsecs. (k) and (l) as (i) and (j), respectively.
- 1961 Pub. L. 87-61 Pub. L. 87–61 substituted “6152(a) or 6156(a)” for “6152(a)” in introductory provisions, and “6152(b) or 6156(b), as the case may be” for “6152(b)” in subpar. (A).
(d) Income tax reduced by carryback or adjustment for certain unused deductions
Amended 1969, 1974, 1975, 1977, 1978
- 1978 Pub. L. 95-628 Pub. L. 95–628, § 8(c)(2)(B), struck out pars. (4) and (5) which provided for work incentive program credit carrybacks and new employee credit carrybacks, respectively.
- 1977 Pub. L. 95-30 Pub. L. 95–30 added par. (5).
- 1975 Pub. L. 93-625 Pub. L. 93–625, § 7(b)(1), struck out subsec. (b) relating to extensions of time for payment of estate tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively, struck out subsec. (j) relating to extensions of time for payment of tax attributable to recoveries of foreign expropriation losses, and redesignated subsecs. (k) and (l) as (i) and (j), respectively.
- 1974 Pub. L. 93-406 Pub. L. 93–406 inserted reference to chapter 43 in heading, and substituted “certain excise” for “chapter 42” in text.
- 1969 Pub. L. 91-172 Pub. L. 91–172, § 101(j)(49), inserted reference to chapter 42 both in subsec. heading and in text.
(1) Net operating loss or capital loss carryback If the amount of any tax imposed by subtitle A is reduced by reason of a carryback of a net operating loss or net capital loss, such reduction in tax shall not affect the computation of interest under this section for the period ending with the filing date for the taxable year in which the net operating loss or net capital loss arises.
Amended 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 346(c)(2)(A), substituted “the filing date for the taxable year” for “the last day of the taxable year”.
(2) Foreign tax credit carrybacks If any credit allowed for any taxable year is increased by reason of a carryback of tax paid or accrued to foreign countries or possessions of the United States, such increase shall not affect the computation of interest under this section for the period ending with the filing date for the taxable year in which such taxes were in fact paid or accrued, or, with respect to any portion of such credit carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback from a subsequent taxable year, such increase shall not affect the computation of interest under this section for the period ending with the filing date for such subsequent taxable year.
Amended 1978, 1982, 1984, 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1055(a), added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), respectively.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 714(n)(1), made technical correction to directory language of Pub. L. 97–248, § 346(c)(2)(B). See 1982 Amendment note below.
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 346(c)(2)(B), as amended by Pub. L. 98–369, § 346(c)(2)(B), substituted “the filing date for” for “the last day of” in two places.
- 1978 Pub. L. 95-628 Pub. L. 95–628, § 8(c)(2)(A), substituted in heading “Certain credit carrybacks” for “Investment credit carryback”, designated existing provision as subpar. (A), and in subpar. (A) as so designated, inserted heading “In general” and in text extended the application of the provision to credit carrybacks, previously limited to investment credit carrybacks, included other credit carrybacks, and added subpar. (B).
(3) Certain credit carrybacks
Amended 1984, 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1055(a), added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), respectively.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 211(b)(26), redesignated par. (4) as (3) and struck out former par. (3) which had provided that if the amount of any tax imposed by subtitle A was reduced by operation of section 815(d)(5) (relating to reduction of policyholders surplus account of life insurance companies for certain unused deductions), such reduction in tax would not affect the computation of interest under this section for the period ending with the last day of the last taxable year to which the loss described in section 815(d)(5)(A) was carried under section 812(b)(2).
(A) In general If any credit allowed for any taxable year is increased by reason of a credit carryback, such increase shall not affect the computation of interest under this section for the period ending with the filing date for the taxable year in which the credit carryback arises, or, with respect to any portion of a credit carryback from a taxable year attributable to a net operating loss carryback, capital loss carryback, or other credit carryback from a subsequent taxable year, such increase shall not affect the computation of interest under this section for the period ending with the filing date for such subsequent taxable year.
(B) Credit carryback defined For purposes of this paragraph, the term “credit carryback” has the meaning given such term by section 6511(d)(4)(C).
(4) Filing date For purposes of this subsection, the term “filing date” has the meaning given to such term by section 6611(f)(4)(A).
Amended 1976, 1978, 1982, 1984, 1997, 2005
- 2005 Pub. L. 109-135 Pub. L. 109–135 substituted “6611(f)(4)(A)” for “6611(f)(3)(A)”.
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1055(a), added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), respectively.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 211(b)(26), redesignated par. (4) as (3) and struck out former par. (3) which had provided that if the amount of any tax imposed by subtitle A was reduced by operation of section 815(d)(5) (relating to reduction of policyholders surplus account of life insurance companies for certain unused deductions), such reduction in tax would not affect the computation of interest under this section for the period ending with the last day of the last taxable year to which the loss described in section 815(d)(5)(A) was carried under section 812(b)(2).
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 346(c)(2)(C), added par. (4).
- 1978 Pub. L. 95-628 Pub. L. 95–628, § 8(c)(2)(B), struck out pars. (4) and (5) which provided for work incentive program credit carrybacks and new employee credit carrybacks, respectively.
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 2107(g)(2)(C), inserted “, an investment credit carryback,” after “net operating loss carryback”.
(e) Applicable rules Except as otherwise provided in this title—
Amended 1962, 1964, 1971, 1975, 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 344(b)(1), struck out par. (2) which had provided that no interest under this section was to be imposed on the interest provided by this section, and redesignated pars. (3) and (4) as (2) and (3), respectively.
- 1975 Pub. L. 93-625 Pub. L. 93–625, § 7(b)(1), struck out subsec. (b) relating to extensions of time for payment of estate tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively, struck out subsec. (j) relating to extensions of time for payment of tax attributable to recoveries of foreign expropriation losses, and redesignated subsecs. (k) and (l) as (i) and (j), respectively.
- 1971 Pub. L. 92-178 Pub. L. 92–178 added par. (4).
- 1964 Pub. L. 88-571 Pub. L. 88–571 added par. (3) and inserted “or adjustment for certain unused deductions” in heading.
- 1962 Pub. L. 87-834 Pub. L. 87–834 designated existing provisions as par. (1) and added par. (2).
Cited by 1
(1) Interest treated as tax Interest prescribed under this section on any tax shall be paid upon notice and demand, and shall be assessed, collected, and paid in the same manner as taxes. Any reference to this title (except subchapter B of chapter 63, relating to deficiency procedures) to any tax imposed by this title shall be deemed also to refer to interest imposed by this section on such tax.
Amended 1969
- 1969 Pub. L. 91-172 Pub. L. 91–172, § 512(e)(3)(A), (B), substituted “loss or capital loss carryback” for “loss carryback” in heading, and “net operating loss or net capital loss” for “net operating loss” wherever it appears in text.
(2) Interest on penalties, additional amounts, or additions to the tax
Amended 1967, 1969, 1984, 1989
- 1989 Pub. L. 101-239 Pub. L. 101–239 substituted “section 6651(a)(1) or 6653 or under part II of subchapter A of chapter 68” for “section 6651(a)(1), 6653, 6659, 6660, or 6661” in subpars. (A) and (B).
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 158(a), in amending par. (2) generally, inserted “(other than an addition to tax imposed under section 6651(a)(1), 6659, 6660, or 6661)”, and added subpar. (B).
- 1969 Pub. L. 91-172 Pub. L. 91–172, § 512(e)(3)(C), substituted “loss carryback or a capital loss carryback” for “loss carryback”.
- 1967 Pub. L. 90-225 Pub. L. 90–225 inserted “, or with respect to any portion of an investment credit carryback from a taxable year attributable to a net operating loss carryback from a subsequent taxable year, such increase shall not affect the computation of interest under this section for the period ending with the last day of such subsequent taxable year,” after “the investment credit carryback arises”.
Cited by 1
(A) In general Interest shall be imposed under subsection (a) in respect of any assessable penalty, additional amount, or addition to the tax (other than an addition to tax imposed under section 6651(a)(1) or 6653 or under part II of subchapter A of chapter 68) only if such assessable penalty, additional amount, or addition to the tax is not paid within 21 calendar days from the date of notice and demand therefor (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000), and in such case interest shall be imposed only for the period from the date of the notice and demand to the date of payment.
Amended 1988, 1996
- 1996 Pub. L. 104-168 Pub. L. 104–168, § 303(b)(1), substituted “21 calendar days from the date of notice and demand therefor (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000)” for “10 days from the date of notice and demand therefor”.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1015(b)(2)(C), substituted “6653, 6659” for “6659”.
(B) Interest on certain additions to tax Interest shall be imposed under this section with respect to any addition to tax imposed by section 6651(a)(1) or 6653 or under part II of subchapter A of chapter 68 for the period which—
Amended 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1015(b)(2)(C), substituted “6653, 6659” for “6659”.
Cited by 1
(i) begins on the date on which the return of the tax with respect to which such addition to tax is imposed is required to be filed (including any extensions), and
(ii) ends on the date of payment of such addition to tax.
(3) Payments made within specified period after notice and demand If notice and demand is made for payment of any amount and if such amount is paid within 21 calendar days (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000) after the date of such notice and demand, interest under this section on the amount so paid shall not be imposed for the period after the date of such notice and demand.
Amended 1996
- 1996 Pub. L. 104-168 Pub. L. 104–168, § 303(a), substituted “specified period” for “10 days” in heading and amended text generally. Prior to amendment, text read as follows: “If notice and demand is made for payment of any amount, and if such amount is paid within 10 days after the date of such notice and demand interest under this section on the amount so paid shall not be imposed for the period after the date of such notice and demand.”
(f) Satisfaction by credits If any portion of a tax is satisfied by credit of an overpayment, then no interest shall be imposed under this section on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowable with respect to such overpayment. The preceding sentence shall not apply to the extent that section 6621(d) applies.
Amended 1975, 1998
- 1998 Pub. L. 105-206 Pub. L. 105–206 inserted at end “The preceding sentence shall not apply to the extent that section 6621(d) applies.”
- 1975 Pub. L. 93-625 Pub. L. 93–625, § 7(b)(1), struck out subsec. (b) relating to extensions of time for payment of estate tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively, struck out subsec. (j) relating to extensions of time for payment of tax attributable to recoveries of foreign expropriation losses, and redesignated subsecs. (k) and (l) as (i) and (j), respectively.
Cases: Northern States Power Co. v. United States, 73 F.3d 764 (8th Cir. 1996)
(g) Limitation on assessment and collection Interest prescribed under this section on any tax may be assessed and collected at any time during the period within which the tax to which such interest relates may be collected.
Amended 1958, 1975
- 1975 Pub. L. 93-625 Pub. L. 93–625, § 7(b)(1), struck out subsec. (b) relating to extensions of time for payment of estate tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively, struck out subsec. (j) relating to extensions of time for payment of tax attributable to recoveries of foreign expropriation losses, and redesignated subsecs. (k) and (l) as (i) and (j), respectively.
- 1958 Pub. L. 85-866 Pub. L. 85–866, §§ 83(a)(1), 84(a), added subsecs. (g) and (h) and redesignated former subsecs. (g) and (h) as (h) and (i), respectively.
Cited by 1
(h) Exception as to estimated tax This section shall not apply to any failure to pay any estimated tax required to be paid by section 6654 or 6655.
Amended 1958, 1975, 1976, 1984, 1987
- 1987 Pub. L. 100-203 Pub. L. 100–203 substituted “section 6654 or 6655” for “section 6154 or 6654”.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 412(b)(7), amended subsec. (h) generally, substituting “any estimated tax required to be paid by section 6154 or 6654” for “estimated tax required by section 6153 or section 6154”.
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(a)(34), struck out “(or section 59 of the Internal Revenue Code of 1939)”.
- 1975 Pub. L. 93-625 Pub. L. 93–625, § 7(b)(1), struck out subsec. (b) relating to extensions of time for payment of estate tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively, struck out subsec. (j) relating to extensions of time for payment of tax attributable to recoveries of foreign expropriation losses, and redesignated subsecs. (k) and (l) as (i) and (j), respectively.
- 1958 Pub. L. 85-866 Pub. L. 85–866, §§ 83(a)(1), 84(a), added subsecs. (g) and (h) and redesignated former subsecs. (g) and (h) as (h) and (i), respectively.
(i) Exception as to Federal unemployment tax This section shall not apply to any failure to make a payment of tax imposed by section 3301 for a calendar quarter or other period within a taxable year required under authority of section 6157.
Amended 1958, 1975, 1983, 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 7106(c)(5), struck out “or 3321” after “3301”.
- 1983 Pub. L. 98-76 Pub. L. 98–76 inserted “or 3321” after “3301”.
- 1975 Pub. L. 93-625 Pub. L. 93–625, § 7(b)(1), struck out subsec. (b) relating to extensions of time for payment of estate tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively, struck out subsec. (j) relating to extensions of time for payment of tax attributable to recoveries of foreign expropriation losses, and redesignated subsecs. (k) and (l) as (i) and (j), respectively.
- 1958 Pub. L. 85-866 Pub. L. 85–866, §§ 83(a)(1), 84(a), added subsecs. (g) and (h) and redesignated former subsecs. (g) and (h) as (h) and (i), respectively.
(j) 2-percent rate on certain portion of estate tax extended under section 6166
Amended 1958, 1966, 1975, 1976, 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 503(c)(3), substituted “2-percent” for “4-percent” in heading.
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 2004(b), added subsec. (j) and redesignated former subsec. (j) as (k).
- 1975 Pub. L. 93-625 Pub. L. 93–625, § 7(b)(1), struck out subsec. (b) relating to extensions of time for payment of estate tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively, struck out subsec. (j) relating to extensions of time for payment of tax attributable to recoveries of foreign expropriation losses, and redesignated subsecs. (k) and (l) as (i) and (j), respectively.
- 1966 Pub. L. 89-384 Pub. L. 89–384 added subsec. (j) and redesignated former subsec. (j) as (k).
- 1958 Pub. L. 85-866 Pub. L. 85–866, §§ 83(a)(1), 84(a), added subsecs. (g) and (h) and redesignated former subsecs. (g) and (h) as (h) and (i), respectively.
Cited by 7
(1) In general If the time for payment of an amount of tax imposed by chapter 11 is extended as provided in section 6166, then in lieu of the annual rate provided by subsection (a)—
Amended 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 503(a), reenacted par. heading without change and amended text generally. Prior to amendment, text read as follows: “If the time for payment of an amount of tax imposed by chapter 11 is extended as provided in section 6166, interest on the 4-percent portion of such amount shall (in lieu of the annual rate provided by subsection (a)) be paid at the rate of 4 percent. For purposes of this subsection, the amount of any deficiency which is prorated to installments payable under section 6166 shall be treated as an amount of tax payable in installments under such section.”
(A) interest on the 2-percent portion of such amount shall be paid at the rate of 2 percent, and
(B) interest on so much of such amount as exceeds the 2-percent portion 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 6166 shall be treated as an amount of tax payable in installments under such section.
(2) 2-percent portion For purposes of this subsection, the term “2-percent portion” means the lesser of—
Amended 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 503(a), amended heading and text generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘4-percent portion’ means the lesser of—
“(A) $345,800 reduced by the amount of the credit allowable under section 2010(a); or
“(B) the amount of the tax imposed by chapter 11 which is extended as provided in section 6166.”
Cited by 1
Cited by 1
(i) the amount of the tentative tax which would be determined under the rate schedule set forth in section 2001(c) if the amount with respect to which such tentative tax is to be computed were the sum of $1,000,000 and the applicable exclusion amount in effect under section 2010(c), reduced by
(ii) the applicable credit amount in effect under section 2010(c), or
(B) the amount of the tax imposed by chapter 11 which is extended as provided in section 6166.
(3) Inflation adjustment In the case of estates of decedents dying in a calendar year after 1998, the $1,000,000 amount contained in paragraph (2)(A) shall be increased by an amount equal to—
Amended 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 501(e), added par. (3). Former par. (3) redesignated (4).
(A) $1,000,000, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “calendar year 1997” for “calendar year 2016” in subparagraph (A)(ii) thereof.
Amended 2017
- 2017 Pub. L. 115-97 Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount shall be rounded to the next lowest multiple of $10,000.
(4) Treatment of payments If the amount of tax imposed by chapter 11 which is extended as provided in section 6166 exceeds the 2-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 2-percent portion by an amount which bears the same ratio to the amount of such payment as the amount of the 2-percent portion (determined without regard to this paragraph) bears to the amount of the tax which is extended as provided in section 6166.
Amended 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 503(c)(2), substituted “2-percent” for “4-percent” wherever appearing.
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 501(e), redesignated par. (3) as (4).
(k) No interest on certain adjustments For provisions prohibiting interest on certain adjustments in tax, see section 6205(a).
Amended 1966, 1969, 1975, 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 2004(b), added subsec. (j) and redesignated former subsec. (j) as (k).
- 1975 Pub. L. 93-625 Pub. L. 93–625, § 7(b)(1), struck out subsec. (b) relating to extensions of time for payment of estate tax, redesignated subsecs. (c) to (i) as (b) to (h), respectively, struck out subsec. (j) relating to extensions of time for payment of tax attributable to recoveries of foreign expropriation losses, and redesignated subsecs. (k) and (l) as (i) and (j), respectively.
- 1969 Pub. L. 91-53 Pub. L. 91–53 added subsec. (k) and redesignated former subsec. (k) as (l).
- 1966 Pub. L. 89-384 Pub. L. 89–384 added subsec. (j) and redesignated former subsec. (j) as (k).