9 0 STAT. 1862
PUBLIC LAW 94-455—OCT. 4, 1976 " (d) SUBSTITUTION OF SECURITY FOR L I E N. — To the extent provided
in regulations prescribed by the Secretary, the furnishing of security may be substituted for the lien imposed by t h i s section." 26 USC 2013.
(c) CREDIT FOR T A X ON PRIOR TRANSFERS.—Section 2013 ( r e l a t i n g
to credit for tax on prior transfers) is amended by a d d i n g at the end thereof the following new subsection: "(f)
TREATMENT OF ADDITIONAL T A X IMPOSED U N D E R
SECTION
2032A.—If section 2032A applies to any property included in the gross estate of the transferor and an additional tax is imposed with respect to such property under section 2032A(c) before the date which is 2 years after the date of the decedent's death, for purposes of this section— " (1) the additional tax imposed by section 2032A(c) shall be treated as a Federal estate tax payable with respect to the estate of the transfer o r; and " (2) the value of such property and the amount of the taxable estate of the transferor shall be determined as if section 2032A d i d not apply with respect to such property. " (d)
26 USC 2032A note.
CLERICAL AMENDMENTS. —
(1) The table of sections for part III of subchapter A of chapter 11 is amended by inserting after the item relating to section 2032 the following new item: "Sec. 2032A. Valuation of certain farm, etc., real property." (2) The table of sections for subchapter C of chapter 64 is amended by inserting after the item relating to section 6324A the following new item: "Sec. 6324B. Special lien for additional estate tax attributable to farm, etc., valuation." (e) EFFECTIVE D A T E. — The amendments made by this section shall apply to the estates of decedents dying after December 31, 1976. SEC. 2004. EXTENSION OF TIME FOR PAYMENT OF ESTATE TAX. (a) GENERAL RULE. — Subchapter B of chapter
26 USC 6166.
62
(relating
to
extensions of time for payment of tax) is amended by redesignating section 6166 as section 6166A and by inserting after section 6165 the following new section: "SEC. 6166. ALTERNATE EXTENSION OF TIME FOR PAYMENT OF ESTATE TAX WHERE ESTATE CONSISTS LARGELY OF INTEREST IN CLOSELY HELD BUSINESS. " (a) 5-YEAR DEFERRAL; 10-YEAR INSTALLMENT P A Y M E N T. —
" (1) IN GENERAL.—If the value of an interest in a closely held business which is included in determining the gross estate of a decedent who was (at the date of his death) a citizen or resident of the United States exceeds 65 percent of the adjusted gross estate, the executor may elect to p a y part or all of the tax imposed by section 2001 in 2 or more ( b u t not exceeding 10) equal installments. " (2) L I M I T A T I O N. — The maximum amount of tax which may be paid in installments under this subsection shall be an amount which bears the same ratio to the tax imposed by section 2001 (reduced by the credits against such tax) as— " (A) the closely held business amount, bears to " (B) the amount of the adjusted gross estate. "(3)
D A T E FOR PAYMENT OF INSTALLMENTS.—If a n election is
made under paragraph (1), the first installment shall be paid on or before the date selected by the executor which is not more than
�
