Section 6166: After 40 Years in the Wilderness, Is It Finally Ready to Enter the Promised Land?

[...]the non-deferred portion of the estate tax must be paid under the normal payment rules. Since its inception as part of the Small Business Tax Revision Act of 1958, Section 6166 has had a somewhat convoluted history. [...]related to the lien issues, fiduciaries involved in estates making 6166 el...

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Bibliographic Details
Published inEstate Planning Vol. 48; no. 7; pp. 37 - 42
Main Author Sloan, David E
Format Journal Article Trade Publication Article
LanguageEnglish
Published New York Warren, Gorham & Lamont, Inc 01.07.2021
Thomson Reuters (Tax & Accounting) Inc
Subjects
Close corporations
Committees
Elections
Estate planning
Estate tax
Estate taxes
Installment payments
Laws, regulations and rules
Liability
Limited liability companies
Management
Task forces
Tax elections
Tax exemptions
Tax returns
Taxation
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ISSN0094-1794

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Summary:[...]the non-deferred portion of the estate tax must be paid under the normal payment rules. Since its inception as part of the Small Business Tax Revision Act of 1958, Section 6166 has had a somewhat convoluted history. [...]related to the lien issues, fiduciaries involved in estates making 6166 elections may unwittingly subject themselves to sometimes draconian personal liability under statutes like Section 6324(a)(2) and 31 U.S.C. section 3713.9 As suggested by the Joint Committee, another problem with current Section 6166 is that the statute is significantly out of date. [...]limited liability companies were generally unavailable when current Section 6166 was enacted. According to a study of estate tax returns for decedents who died in 2001 when the estate tax exemption was $675,000, "many estates that claimed benefits under Sections 2032A, 2057, or 6166 held liquid assets nearly sufficient to meet all debts against the estate and ... only 2.4 percent of estates that reported closely held business assets and agricultural assets elected the deferral of tax under Section 6166.
ISSN:0094-1794