Castle Estate Planning: irs estate tax code 2100e
IRS Estate Tax Code: 26 USCS 2056-2059
26 USCS § 2056A (2005)
§ 2056A. Qualified domestic trust [Caution: See prospective amendment note below.].
(a) Qualified domestic trust defined. For purposes of this section and section 2056(d) [26 USCS § 2056(d)], the term 'qualified domestic trust' means, with respect to any decedent, any trust if--
(1) the trust instrument--
(A) except as provided in regulations prescribed by the Secretary, requires that at least 1 trustee of the trust be an individual citizen of the United States or a domestic corporation, and
(B) provides that no distribution (other than a distribution of income) may be made from the trust unless a trustee who is an individual citizen of the United States or a domestic corporation has the right to withhold from such distribution the tax imposed by this section on such distribution,
(2) such trust meets such requirements as the Secretary may by regulations prescribe to ensure the collection of any tax imposed by subsection (b), and
(3) an election under this section by the executor of the decedent applies to such trust.
(b) Tax treatment of trust.
(1) Imposition of estate tax. There is hereby imposed an estate tax on--
(A) any distribution before the date of the death of the surviving spouse from a qualified domestic trust, and
(B) the value of the property remaining in a qualified domestic trust on the date of the death of the surviving spouse.
(2) Amount of tax.
(A) In general. In the case of any taxable event, the amount of the estate tax imposed by paragraph (1) shall be the amount equal to--
(i) the tax which would have been imposed under section 2001 [26 USCS § 2001] on the estate of the decedent if the taxable estate of the decedent had been increased by the sum of--
(I) the amount involved in such taxable event, plus
(II) the aggregate amount involved in previous taxable events with respect to qualified domestic trusts of such decedent, reduced by
(ii) the tax which would have been imposed under section 2001 [26 USCS § 2001] on the estate of the decedent if the taxable estate of the decedent had been increased by the amount referred to in clause (i)(II).
(B) Tentative tax where tax of decedent not finally determined.
(i) In general. If the tax imposed on the estate of the decedent under section 2001 [26 USCS § 2001] is not finally determined before the taxable event, the amount of the tax imposed by paragraph (1) on such event shall be determined by using the highest rate of tax in effect under section 2001 [26 USCS § 2001] as of the date of the decedent's death.
(ii) Refund of excess when tax finally determined. If--
(I) the amount of the tax determined under clause (i), exceeds
(II) the tax determined under subparagraph (A) on the basis of the final determination of the tax imposed by section 2001 [26 USCS § 2001] on the estate of the decedent,
such excess shall be allowed as a credit or refund (with interest) if claim therefor is filed not later than 1 year after the date of such final determination.
(C) Special rule where decedent has more than 1 qualified domestic trust. If there is more than 1 qualified domestic trust with respect to any decedent, the amount of the tax imposed by paragraph (1) with respect to such trusts shall be determined by using the highest rate of tax in effect under section 2001 [26 USCS § 2001] as of the date of the decedent's death (and the provisions of paragraph (3)(B) shall not apply) unless, pursuant to a designation made by the decedent's executor, there is 1 person--
(i) who is an individual citizen of the United States or a domestic corporation and is responsible for filing all returns of tax imposed under paragraph (1) with respect to such trusts and for paying all tax so imposed, and
(ii) who meets such requirements as the Secretary may by regulations prescribe.
(3) Certain lifetime distributions exempt from tax.
(A) Income distributions. No tax shall be imposed by paragraph (1)(A) on any distribution of income to the surviving spouse.
(B) Hardship exemption. No tax shall be imposed by paragraph (1)(A) on any distribution to the surviving spouse on account of hardship.
(4) Tax where trust ceases to qualify. If any qualified domestic trust ceases to meet the requirements of paragraphs (1) and (2) of subsection (a), the tax imposed by paragraph (1) shall apply as if the surviving spouse died on the date of such cessation.
(5) Due date.
(A) Tax on distributions. The estate tax imposed by paragraph (1)(A) shall be due and payable on the 15th day of the 4th month following the calendar year in which the taxable event occurs; except that the estate tax imposed by paragraph (1)(A) on distributions during the calendar year in which the surviving spouse dies shall be due and payable not later than the date on which the estate tax imposed by paragraph (1)(B) is due and payable.
(B) Tax at death of spouse. The estate tax imposed by paragraph (1)(B) shall be due and payable on the date 9 months after the date of such death.
(6) Liability for tax. Each trustee shall be personally liable for the amount of the tax imposed by paragraph (1). Rules similar to the rules of section 2204 [26 USCS § 2204] shall apply for purposes of the preceding sentence.
(7) Treatment of tax. For purposes of section 2056(d) [26 USCS § 2056(d)], any tax paid under paragraph (1) shall be treated as a tax paid under section 2001 [26 USCS § 2001] with respect to the estate of the decedent.
(8) Lien for tax. For purposes of section 6324 [26 USCS § 6324], any tax imposed by paragraph (1) shall be treated as an estate tax imposed under this chapter [26 USCS § § 2001 et seq.] with respect to a decedent dying on the date of the taxable event (and the property involved shall be treated as the gross estate of such decedent).
(9) Taxable event. The term 'taxable event' means the event resulting in tax being imposed under paragraph (1).
(10) Certain benefits allowed.
(A) In general. If any property remaining in the qualified domestic trust on the date of the death of the surviving spouse is includible in the gross estate of such spouse for purposes of this chapter [26 USCS § § 2001 et seq.] (or would be includible if such spouse were a citizen or resident of the United States), any benefit which is allowable (or would be allowable if such spouse were a citizen or resident of the United States) with respect to such property to the estate of such spouse under section 2014, 2032, 2032A, 2055, 2056, 2058, or 6166 [26 USCS § 2014, 2032, 2032A, 2055, 2056, 2058, or 6166] shall be allowed for purposes of the tax imposed by paragraph (1)(B).
(B) Section 303. If the estate of the surviving spouse meets the requirements of section 303 [26 USCS § 303] with respect to any property described in subparagraph (A), for purposes of section 303 [26 USCS § 303], the tax imposed by paragraph (1)(B) with respect to such property shall be treated as a Federal estate tax payable with respect to the estate of the surviving spouse.
(C) Section 6161(a)(2). The provisions of section 6161(a)(2) [26 USCS § 6161(a)(2)] shall apply with respect to the tax imposed by paragraph (1)(B), and the reference in such section to the executor shall be treated as a reference to the trustees of the trust.
(11) Special rule where distribution tax paid out of trust. For purposes of this subsection, if any portion of the tax imposed by paragraph (1)(A) with respect to any distribution is paid out of the trust, an amount equal to the portion so paid shall be treated as a distribution described in paragraph (1)(A).
(12) Special rule where spouse becomes citizen. If the surviving spouse of the decedent becomes a citizen of the United States and if--
(A) such spouse was a resident of the United States at all times after the date of the death of the decedent and before such spouse becomes a citizen of the United States,
(B) no tax was imposed by paragraph (1)(A) with respect to any distribution before such spouse becomes such a citizen, or
(C) such spouse elects--
(i) to treat any distribution on which tax was imposed by paragraph (1)(A) as a taxable gift made by such spouse for purposes of--
(I) section 2001 [26 USCS § 2001], and
(II) determining the amount of the tax imposed by section 2501 [26 USCS § 2501] on actual taxable gifts made by such spouse during the year in which the spouse becomes a citizen or any subsequent year, and
(ii) to treat any reduction in the tax imposed by paragraph (1)(A) by reason of the credit allowable under section 2010 [26 USCS § 2010] with respect to the decedent as a credit allowable to such surviving spouse under section 2505 [26 USCS § 2505] for purposes of determining the amount of the credit allowable under section 2505 [26 USCS § 2505] with respect to taxable gifts made by the surviving spouse during the year in which the spouse becomes a citizen or any subsequent year,
paragraph (1)(A) shall not apply to any distributions after such spouse becomes such a citizen (and paragraph (1)(B) shall not apply).
(13) Coordination with section 1015. For purposes of section 1015 [26 USCS § 1015], any distribution on which tax is imposed by paragraph (1)(A) shall be treated as a transfer by gift, and any tax paid under paragraph (1)(A) shall be treated as a gift tax.
(14) Coordination with terminable interest rules. Any interest in a qualified domestic trust shall not be treated as failing to meet the requirements of paragraph (5) or (7) of section 2056(b) [26 USCS § 2056(b)] merely by reason of any provision of the trust instrument permitting the withholding from any distribution of an amount to pay the tax imposed by paragraph (1) on such distribution.
(15) No tax on certain distributions. No tax shall be imposed by paragraph (1) on any distribution to the surviving spouse to the extent such distribution is to reimburse such surviving spouse for any tax imposed by subtitle A [26 USCS § § 1 et seq.] on any item of income of the trust to which such surviving spouse is not entitled under the terms of the trust.
(c) Definitions. For purposes of this section--
(1) Property includes interest therein. The term 'property' includes an interest in property.
(2) Income. Except as provided in regulations, the term 'income' has the meaning given to such term by section 643(b) [26 USCS § 643(b)].
(3) Trust. To the extent provided in regulations prescribed by the Secretary, the term 'trust' includes other arrangements which have substantially the same effect as a trust.
(d) Election. An election under this section with respect to any trust shall be made by the executor on the return of the tax imposed by section 2001 [26 USCS § 2001]. Such an election, once made, shall be irrevocable. No election may be made under this section on any return if such return is filed more than one year after the time prescribed by law (including extensions) for filing such return.
(e) Regulations. The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations under which there may be treated as a qualified domestic trust any annuity or other payment which is includible in the decedent's gross estate and is by its terms payable for life or a term of years.
26 USCS § 2057 (2005)
§ 2057. Family-owned business interests [Caution: This section does not apply to estates of decedents dying after December 31, 2003, as provided by subsec. (j) of this section. See also prospective amendment note below.].
(a) General rule.
(1) Allowance of deduction. For purposes of the tax imposed by section 2001 [26 USCS § 2001], in the case of an estate of a decedent to which this section applies, the value of the taxable estate shall be determined by deducting from the value of the gross estate the adjusted value of the qualified family-owned business interests of the decedent which are described in subsection (b)(2).
(2) Maximum deduction. The deduction allowed by this section shall not exceed $ 675,000.
(3) Coordination with unified credit.
(A) In general. Except as provided in subparagraph (B), if this section applies to an estate, the applicable exclusion amount under section 2010 [26 USCS § 2010] shall be $ 625,000.
(B) Increase in unified credit if deduction is less than $ 675,000. If the deduction allowed by this section is less than $ 675,000, the amount of the applicable exclusion amount under section 2010 [26 USCS § 2010] shall be increased (but not above the amount which would apply to the estate without regard to this section) by the excess of $ 675,000 over the amount of the deduction allowed.
(b) Estates to which section applies.
(1) In general. This section shall apply to an estate if--
(A) the decedent was (at the date of the decedent's death) a citizen or resident of the United States,
(B) the executor elects the application of this section and files the agreement referred to in subsection (h),
(C) the sum of--
(i) the adjusted value of the qualified family-owned business interests described in paragraph (2), plus
(ii) the amount of the gifts of such interests determined under paragraph (3),
exceeds 50 percent of the adjusted gross estate, and
(D) during the 8-year period ending on the date of the decedent's death there have been periods aggregating 5 years or more during which--
(i) such interests were owned by the decedent or a member of the decedent's family, and
(ii) there was material participation (within the meaning of section 2032A(e)(6) [26 USCS § 2032A(e)(6)]) by the decedent or a member of the decedent's family in the operation of the business to which such interests relate.
(2) Includible qualified family-owned business interests. The qualified family-owned business interests described in this paragraph are the interests which--
(A) are included in determining the value of the gross estate, and
(B) are acquired by any qualified heir from, or passed to any qualified heir from, the decedent (within the meaning of section 2032A(e)(9) [26 USCS § 2032A(e)(9)]).
(3) Includible gifts of interests. The amount of the gifts of qualified family-owned business interests determined under this paragraph is the sum of--
(A) the amount of such gifts from the decedent to members of the decedent's family taken into account under section 2001(b)(1)(B) [26 USCS § 2001(b)(1)(B)], plus
(B) the amount of such gifts otherwise excluded under section 2503(b) [26 USCS § 2503(b)],
to the extent such interests are continuously held by members of such family (other than the decedent's spouse) between the date of the gift and the date of the decedent's death.
(c) Adjusted gross estate. For purposes of this section, the term "adjusted gross estate" means the value of the gross estate--
(1) reduced by any amount deductible under paragraph (3) or (4) of section 2053(a) [26 USCS § 2053(a)], and
(2) increased by the excess of--
(A) the sum of--
(i) the amount of gifts determined under subsection (b)(3), plus
(ii) the amount (if more than de minimis) of other transfers from the decedent to the decedent's spouse (at the time of the transfer) within 10 years of the date of the decedent's death, plus
(iii) the amount of other gifts (not included under clause (i) or (ii)) from the decedent within 3 years of such date, other than gifts to members of the decedent's family otherwise excluded under section 2503(b) [26 USCS § 2503(b)], over
(B) the sum of the amounts described in clauses (i), (ii), and (iii) of subparagraph (A) which are otherwise includible in the gross estate.
For purposes of the preceding sentence, the Secretary may provide that de minimis gifts to persons other than members of the decedent's family shall not be taken into account.
(d) Adjusted value of the qualified family-owned business interests. For purposes of this section, the adjusted value of any qualified family-owned business interest is the value of such interest for purposes of this chapter [26 USCS § § 2001 et seq.] (determined without regard to this section), reduced by the excess of--
(1) any amount deductible under paragraph (3) or (4) of section 2053(a) [26 USCS § 2053(a)], over
(2) the sum of--
(A) any indebtedness on any qualified residence of the decedent the interest on which is deductible under section 163(h)(3) [26 USCS § 163(h)(3)], plus
(B) any indebtedness to the extent the taxpayer establishes that the proceeds of such indebtedness were used for the payment of educational and medical expenses of the decedent, the decedent's spouse, or the decedent's dependents (within the meaning of section 152 [26 USCS § 152], determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof), plus
(C) any indebtedness not described in subparagraph (A) or (B), to the extent such indebtedness does not exceed $ 10,000.
(e) Qualified family-owned business interest.
(1) In general. For purposes of this section, the term "qualified family-owned business interest" means--
(A) an interest as a proprietor in a trade or business carried on as a proprietorship, or
(B) an interest in an entity carrying on a trade or business, if--
(i) at least--
(I) 50 percent of such entity is owned (directly or indirectly) by the decedent and members of the decedent's family,
(II) 70 percent of such entity is so owned by members of 2 families, or
(III) 90 percent of such entity is so owned by members of 3 families, and
(ii) for purposes of subclause (II) or (III) of clause (i), at least 30 percent of such entity is so owned by the decedent and members of the decedent's family.
For purposes of the preceding sentence, a decedent shall be treated as engaged in a trade or business if any member of the decedent's family is engaged in such trade or business.
(2) Limitation. Such term shall not include--
(A) any interest in a trade or business the principal place of business of which is not located in the United States,
(B) any interest in an entity, if the stock or debt of such entity or a controlled group (as defined in section 267(f)(1) [26 USCS § 267(f)(1)]) of which such entity was a member was readily tradable on an established securities market or secondary market (as defined by the Secretary) at any time within 3 years of the date of the decedent's death,
(C) any interest in a trade or business not described in section 542(c)(2) [26 USCS § 542(c)(2)], if more than 35 percent of the adjusted ordinary gross income of such trade or business for the taxable year which includes the date of the decedent's death would qualify as personal holding company income (as defined in section 543(a) [26 USCS § 543(a)] without regard to paragraph (2)(B) thereof) if such trade or business were a corporation,
(D) that portion of an interest in a trade or business that is attributable to--
(i) cash or marketable securities, or both, in excess of the reasonably expected day-to-day working capital needs of such trade or business, and
(ii) any other assets of the trade or business (other than assets used in the active conduct of a trade or business described in section 542(c)(2) [26 USCS § 542(c)(2)]), which produce, or are held for the production of, personal holding company income (as defined in subparagraph (C)) or income described in section 954(c)(1) [26 USCS § 954(c)(1)] (determined without regard to subparagraph (A) thereof and by substituting "trade or business" for controlled foreign corporation").
In the case of a lease of property on a net cash basis by the decedent to a member of the decedent's family, income from such lease shall not be treated as personal holding company income for purposes of subparagraph (C), and such property shall not be treated as an asset described in subparagraph (D)(ii), if such income and property would not be so treated if the lessor had engaged directly in the activities engaged in by the lessee with respect to such property.
(3) Rules regarding ownership.
(A) Ownership of entities. For purposes of paragraph (1)(B)--
(i) Corporations. Ownership of a corporation shall be determined by the holding of stock possessing the appropriate percentage of the total combined voting power of all classes of stock entitled to vote and the appropriate percentage of the total value of shares of all classes of stock.
(ii) Partnerships. Ownership of a partnership shall be determined by the owning of the appropriate percentage of the capital interest in such partnership.
(B) Ownership of tiered entities. For purposes of this section, if by reason of holding an interest in a trade or business, a decedent, any member of the decedent's family, any qualified heir, or any member of any qualified heir's family is treated as holding an interest in any other trade or business--
(i) such ownership interest in the other trade or business shall be disregarded in determining if the ownership interest in the first trade or business is a qualified family-owned business interest, and
(ii) this section shall be applied separately in determining if such interest in any other trade or business is a qualified family-owned business interest.
(C) Individual ownership rules. For purposes of this section, an interest owned, directly or indirectly, by or for an entity described in paragraph (1)(B) shall be considered as being owned proportionately by or for the entity's shareholders, partners, or beneficiaries. A person shall be treated as a beneficiary of any trust only if such person has a present interest in such trust.
(f) Tax treatment of failure to materially participate in business or dispositions of interests.
(1) In general. There is imposed an additional estate tax if, within 10 years after the date of the decedent's death and before the date of the qualified heir's death--
(A) the material participation requirements described in section 2032A(c)(6)(B) [26 USCS § 2032A(c)(6)(B)] are not met with respect to the qualified family-owned business interest which was acquired (or passed) from the decedent,
(B) the qualified heir disposes of any portion of a qualified family-owned business interest (other than by a disposition to a member of the qualified heir's family or through a qualified conservation contribution under section 170(h) [26 USCS § 170(h)]),
(C) the qualified heir loses United States citizenship (within the meaning of section 877 [26 USCS § 877]) or with respect to whom an event described in subparagraph (A) or (B) of section 877(e)(1) [26 USCS § 877(e)(1)] occurs, and such heir does not comply with the requirements of subsection (g), or
(D) the principal place of business of a trade or business of the qualified family-owned business interest ceases to be located in the United States.
(2) Additional estate tax.
(A) In general. The amount of the additional estate tax imposed by paragraph (1) shall be equal to--
(i) the applicable percentage of the adjusted tax difference attributable to the qualified family-owned business interest, plus
(ii) interest on the amount determined under clause (i) at the underpayment rate established under section 6621 [26 USCS § 6621] for the period beginning on the date the estate tax liability was due under this chapter [26 USCS § § 2001 et seq.] and ending on the date such additional estate tax is due.
(B) Applicable percentage. For purposes of this paragraph, the applicable percentage shall be determined under the following table:
If the event described in
paragraph (1) occurs in
the following year of The applicable
material participation: percentage is:
1 through 6 ................... 100
7........................ 80
8........................ 60
9........................ 40
10........................ 20.
(C) Adjusted tax difference. For purposes of subparagraph (A)--
(i) In general. The adjusted tax difference attributable to a qualified family-owned business interest is the amount which bears the same ratio to the adjusted tax difference with respect to the estate (determined under clause (ii)) as the value of such interest bears to the value of all qualified family-owned business interests described in subsection (b)(2).
(ii) Adjusted tax difference with respect to the estate. For purposes of clause (i), the term "adjusted tax difference with respect to the estate" means the excess of what would have been the estate tax liability but for the election under this section over the estate tax liability. For purposes of this clause, the term "estate tax liability" means the tax imposed by section 2001 [26 USCS § 2001] reduced by the credits allowable against such tax.
(3) Use in trade or business by family members. A qualified heir shall not be treated as disposing of an interest described in subsection (e)(1)(A) by reason of ceasing to be engaged in a trade or business so long as the property to which such interest relates is used in a trade or business by any member of such individual's family.
(g) Security requirements for noncitizen qualified heirs.
(1) In general. Except upon the application of subparagraph (F) of subsection (i)(3), if a qualified heir is not a citizen of the United States, any interest under this section passing to or acquired by such heir (including any interest held by such heir at a time described in subsection (f)(1)(C)) shall be treated as a qualified family-owned business interest only if the interest passes or is acquired (or is held) in a qualified trust.
(2) Qualified trust. The term "qualified trust" means a trust--
(A) which is organized under, and governed by, the laws of the United States or a State, and
(B) except as otherwise provided in regulations, with respect to which the trust instrument requires that at least 1 trustee of the trust be an individual citizen of the United States or a domestic corporation.
(h) Agreement. The agreement referred to in this subsection is a written agreement signed by each person in being who has an interest (whether or not in possession) in any property designated in such agreement consenting to the application of subsection (f) with respect to such property.
(i) Other definitions and applicable rules. For purposes of this section--
(1) Qualified heir. The term "qualified heir"--
(A) has the meaning given to such term by section 2032A(e)(1) [26 USCS § 2032A(e)(1)], and
(B) includes any active employee of the trade or business to which the qualified family-owned business interest relates if such employee has been employed by such trade or business for a period of at least 10 years before the date of the decedent's death.
(2) Member of the family. The term "member of the family" has the meaning given to such term by section 2032A(e)(2) [26 USCS § 2032A(e)(2)].
(3) Applicable rules. Rules similar to the following rules shall apply:
(A) Section 2032A(b)(4) [26 USCS § 2032A(b)(4)] (relating to decedents who are retired or disabled).
(B) Section 2032A(b)(5) [26 USCS § 2032A(b)(5)] (relating to special rules for surviving spouses).
(C) Section 2032A(c)(2)(D) [26 USCS § 2032A(c)(2)(D)] (relating to partial dispositions).
(D) Section 2032A(c)(3) [26 USCS § 2032A(c)(3)] (relating to only 1 additional tax imposed with respect to any 1 portion).
(E) Section 2032A(c)(4) [26 USCS § 2032A(c)(4)] (relating to due date).
(F) Section 2032A(c)(5) [26 USCS § 2032A(c)(5)] (relating to liability for tax; furnishing of bond).
(G) Section 2032A(c)(7) [26 USCS § 2032A(c)(7)] (relating to no tax if use begins within 2 years; active management by eligible qualified heir treated as material participation).
(H) Paragraphs (1) and (3) of section 2032A(d) [26 USCS § 2032A(d)] (relating to election; agreement).
(I) Section 2032A(e)(10) [26 USCS § 2032A(e)(10)] (relating to community property).
(J) Section 2032A(e)(14) [26 USCS § 2032A(e)(14)] (relating to treatment of replacement property acquired in section 1031 or 1033 [26 USCS § 1031 or 1033] transactions).
(K) Section 2032A(f) [26 USCS § 2032A(f)] (relating to statute of limitations).
(L) Section 2032A(g) [26 USCS § 2032A(g)] (relating to application to interests in partnerships, corporations, and trusts).
(M) Subsections (h) and (i) of section 2032A [26 USCS § 2032A].
(N) Section 6166(b)(3) [26 USCS § 6166(b)(3)] (relating to farmhouses and certain other structures taken into account).
(O) Subparagraphs (B), (C), and (D) of section 6166(g)(1) [26 USCS § 6166(g)(1)] (relating to acceleration of payment).
(P) Section 6324B [26 USCS § 6324B] (relating to special lien for additional estate tax).
(j) Termination. This section shall not apply to the estates of decedents dying after December 31, 2003.
26 USCS § 2058 (2005)
§ 2058. State death taxes [Caution: See prospective amendment note below.].
(a) Allowance of deduction. For purposes of the tax imposed by section 2001 [26 USCS § 2001], the value of the taxable estate shall be determined by deducting from the value of the gross estate the amount of any estate, inheritance, legacy, or succession taxes actually paid to any State or the District of Columbia, in respect of any property included in the gross estate (not including any such taxes paid with respect to the estate of a person other than the decedent).
(b) Period of limitations. The deduction allowed by this section shall include only such taxes as were actually paid and deduction therefor claimed before the later of--
(1) 4 years after the filing of the return required by section 6018 [26 USCS § 6018], or
(2) if--
(A) a petition for redetermination of a deficiency has been filed with the Tax Court within the time prescribed in section 6213(a) [26 USCS § 6213(a)], the expiration of 60 days after the decision of the Tax Court becomes final,
(B) an extension of time has been granted under section 6161 or 6166 [26 USCS § 6161 or 6166] for payment of the tax shown on the return, or of a deficiency, the date of the expiration of the period of the extension, or
(C) a claim for refund or credit of an overpayment of tax imposed by this chapter [26 USCS § § 2001 et seq.] has been filed within the time prescribed in section 6511 [26 USCS § 6511], the latest of the expiration of--
(i) 60 days from the date of mailing by certified mail or registered mail by the Secretary to the taxpayer of a notice of the disallowance of any part of such claim,
(ii) 60 days after a decision by any court of competent jurisdiction becomes final with respect to a timely suit instituted upon such claim, or
(iii) 2 years after a notice of the waiver of disallowance is filed under section 6532(a)(3) [26 USCS § 6532(a)(3)].
Notwithstanding sections 6511 and 6512 [26 USCS § § 6511 and 6512], refund based on the deduction may be made if the claim for refund is filed within the period provided in the preceding sentence. Any such refund shall be made without interest.
26 USCS § 2059 (2005)
§ 2059--2100. [Reserved for future use.]