N.Y. Tax Law 976 – Extensions of time
§ 976. Extensions of time. (a) General. (1) The commissioner of taxation and finance may grant a reasonable extension of time for payment of tax (or any installment), or for filing any return, statement or other document required pursuant to this article, on such terms and conditions as he may require. Except in the case of executors who are outside the United States, no such extension for filing any return, statement or other document shall exceed six months. Except as otherwise provided in this article, no such extension for payment shall exceed twelve months from the date fixed for payment.
Terms Used In N.Y. Tax Law 976
- Decedent: A deceased person.
- executor: means the executor or administrator of the estate of the decedent, or, if there is no executor or administrator appointed, qualified and acting, then any person or entity in actual or constructive possession of any property of the decedent. See N.Y. Tax Law 951-A
- Executor: A male person named in a will to carry out the decedent
- Gross estate: The total fair market value of all property and property interests, real and personal, tangible and intangible, of which a decedent had beneficial ownership at the time of death before subtractions for deductions, debts, administrative expenses, and casualty losses suffered during estate administration.
- person: includes an individual, a trustee, a corporation, an association, a joint-stock company, a partnership, a limited liability company and a bank. See N.Y. Tax Law 951-A
- Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- taxpayer: means the estate of the decedent and any other person subject to or liable for any tax imposed by this article. See N.Y. Tax Law 951-A
(2) Where there is included in the value of the gross estate the value of a reversionary or remainder interest in property, the payment of the part of the tax imposed by this article attributable to such interest may, at the election of the executor, be postponed until six months after the termination of the precedent interest or interests in the property, and the amount the payment of which is so postponed shall then be payable, together with interest thereon. If the commissioner of taxation and finance finds that the payment of the tax within such six months would result in undue hardship to the estate and said commissioner has approved payment in respect of such tax over a longer period, he may extend the time for a payment for a reasonable period not in excess of three years from the expiration of such six months. The postponement of the payment of any such amount shall be under such regulations as the commissioner of taxation and finance may prescribe, and shall be upon condition that the executor, or any other person liable for the tax, shall comply with subsection (c) of this section (relating to furnishing of security).
(3) If the commissioner of taxation and finance finds that the payment on the due date of any part of the amount of the tax imposed by this article would result in undue hardship to the estate, he may extend the time for payment for such period as he may deem reasonable, but not to exceed four years from the date of death, and may require payment to be made in annual installments.
(b) Whenever the commissioner extends the time for the payment of tax under this section, that portion of the tax as to which an extension is granted shall bear interest from the date the tax is required to be paid, to the date of payment without regard to any extension of time for the payment of the tax or filing of the return, at the rate prescribed in subsection (a) of section six hundred eighty-four of this chapter.
(c) Furnishing of security. If any extension of time is granted for payment of any amount of tax, the commissioner of taxation and finance may require the taxpayer to furnish a bond 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 extension of time for payment is granted, on such terms and conditions as such commissioner may require.
(d) Cross reference. For extensions of time for payment of estate tax where an estate consists largely of interest in closely held businesses, see section nine hundred ninety-seven of this article.
(e) If the decedent has a cause of action pending at the time of death, or a cause of action arises which is related to the decedent's death, and any recovery under the cause of action is to be taxable under this article, the commissioner shall waive any penalty and interest associated with such cause of action which accrues from the date that the return disclosing such cause of action is filed, provided that such penalty and interest may not be waived for periods beyond one year after the date of final judgment or settlement of the cause of action.