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| Revenue Ruling | Description | Illustration |
|---|---|---|
| IRS interest rates increase for the fourth quarter of 2022 beginning October 1. The regular non-corporate underpayment and overpayment interest rates will be 6%. | ||
| If a section 2032A qualified heir disposes of a portion of qualified property to an unrelated person, neither interest on the recapture tax nor sales expenses are deductible under section 2053(a)(2) on the decedent's estate tax return. | ||
| Sale of 6166 assets to allay foreclosure did not trigger 6166(g)(1)(A) acceleration, but did trigger 2032A recapture tax. | ||
| Sec. 6166(e) prorated deficiency amounts draw interest at the special 6601(j) rates until each anniversary payment due date occurs, after which interest accrues at regular rates under 6601(a) until paid. Rev. Rul. 67-161 clarified and amplified. | ||
| Estate cannot deduct estimated amounts of future interest accruals upon funds borrowed to pay Federal estate tax if the loan repayment can be accelerated. | ||
| Interest paid on late-paid foreign tax is deductible under section 2053(a)(2) to the extent it is allowable under local law. | ||
| Examples illustrate the amount due when 6166 installment payments are recomputed because of deficiencies, overpayments, and changes in the 6166(a)(2) ratio of deferred tax. | Rev. Rul. 81-294 Illustrated | |
| Rev. Rul. 81-256: Interest incurred on deferral of state death taxes is deductible under 2053(a)(2) to the extent allowable under local law, regardless of the reason for the interest charge. Rev. Rul. 81-287: Section 6166 interest was deducted on closed-year 1041s without 642(g) waivers. Estate tax claim for refund offset by equitable recoupment of 1041 interest deductions. | ||
| Sec. 6651(a)(1) and (a)(2) penalties are not deductible under 2053(a)(2) even if allowable under local law. However, interest on the late payments is deductible under 2053(a)(2) to the extent allowable under local law. | ||
| Interest charged on the extended payment of Federal estate tax is deductible under 2053(a)(2) when it accrues. Estimates of future interest expenses are not deductible. | ||
Payment of the first installment of deferred tax was due 9 months after date of death. The estate obtained a 6-month extension of time to file but not an extension of time to pay. The estate tax return was filed 15 months after date of death together with the 6166 election and payment of the first installment. Payment of the first installment within the 6081 extended filing period at the time of filing the return and making the 6166 election will be considered a timely 6161(a)(2) request to extend the time to pay the first installment. Rev. Rul. 74-499 amplified. | Rev. Rul. 76-51, amplifying Rev. Rul. 74-499, Illustrated | |
Payment of first installment of deferred tax, and all non-deferred tax, was due 9 months after date of death. The estate obtained a 6-month extension of time to file but not an extension of time to pay. The return was timely filed 15 months after date of death together with the 6166 election, payment of first installment, payment of all non-deferred tax, and a 6161 request for extension of time to pay the first installment and non-deferred tax. The extension of time to pay was granted under the exception in Reg. 20.6161-1(b). | ||
| Deficiency is prorated to installments even when the prior tax was paid in full | ||
| 1st and 2nd limitation credits under sections 2012 and 2013 |