
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6167]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                CHAPTER 62--TIME AND PLACE FOR PAYING TAX
 
              Subchapter B--Extensions of Time for Payment
 
Sec. 6167. Extension of time for payment of tax attributable to 
        recovery of foreign expropriation losses
        

(a) Extension allowed by election

    If--
        (1) a corporation has a recovery of a foreign expropriation loss 
    to which section 1351 applies, and
        (2) the portion of the recovery received in money is less than 
    25 percent of the amount of such recovery (as defined in section 
    1351(c)) and is not greater than the tax attributable to such 
    recovery,

the tax attributable to such recovery shall, at the election of the 
taxpayer, be payable in 10 equal installments on the 15th day of the 
third month of each of the taxable years following the taxable year of 
the recovery. Such election shall be made at such time and in such 
manner as the Secretary may prescribe by regulations. If an election is 
made under this subsection, the provisions of this subtitle shall apply 
as though the Secretary were extending the time for payment of such tax.

(b) Extension permitted by Secretary

    If a corporation has a recovery of a foreign expropriation loss to 
which section 1351 applies and if an election is not made under 
subsection (a), the Secretary may, upon finding that the payment of the 
tax attributable to such recovery at the time otherwise provided in this 
subtitle would result in undue hardship, extend the time for payment of 
such tax for a reasonable period or periods not in excess of 9 years 
from the date on which such tax is otherwise payable.

(c) Acceleration of payments

    If--
        (1) an election is made under subsection (a),
        (2) during any taxable year before the tax attributable to such 
    recovery is paid in full--
            (A) any property (other than money) received on such 
        recovery is sold or exchanged, or
            (B) any property (other than money) received on any sale or 
        exchange described in subparagraph (A) is sold or exchanged, and

        (3) the amount of money received on such sale or exchange 
    (reduced by the amount of the tax imposed under chapter 1 with 
    respect to such sale or exchange), when added to the amount of 
    money--
            (A) received on such recovery, and
            (B) received on previous sales or exchanges described in 
        subparagraphs (A) and (B) of paragraph (2) (as so reduced),

    exceeds the amount of money which may be received under subsection 
    (a)(2),

an amount of the tax attributable to such recovery equal to such excess 
shall be payable on the 15th day of the third month of the taxable year 
following the taxable year in which such sale or exchange occurs. The 
amount of such tax so paid shall be treated, for purposes of this 
section, as a payment of the first unpaid installment or installments 
(or portion thereof) which become payable under subsection (a) following 
such taxable year.

(d) Proration of deficiency to installments

    If an election is made under subsection (a), and a deficiency 
attributable to the recovery of a foreign expropriation loss has been 
assessed, the deficiency shall be prorated to such installments. The 
part of the deficiency so prorated to any installment the date for 
payment of which has not arrived shall be collected at the same time as, 
and as part of, such installment. The part of the deficiency so prorated 
to any installment the date for payment of which has arrived shall be 
paid upon notice and demand from the Secretary. This subsection shall 
not apply if the deficiency is due to negligence, to intentional 
disregard of rules and regulations, or to fraud with intent to evade 
tax.

(e) Time for payment of interest

    If the time for payment for any amount of tax has been extended 
under this section, interest payable under section 6601 on any unpaid 
portion of such amount shall be paid annually at the same time as, and 
as part of, each installment payment of the tax. Interest, on that part 
of a deficiency prorated under this section to any installment the date 
for payment of which has not arrived, for the period before the date 
fixed for the last installment preceding the assessment of the 
deficiency, shall be paid upon notice and demand from the Secretary.

(f) Tax attributable to recovery of foreign expropriation loss

    For purposes of this section, the tax attributable to a recovery of 
a foreign expropriation loss is the sum of--
        (1) the additional tax imposed by section 1351(d)(1) on such 
    recovery, and
        (2) the amount by which the tax imposed under subtitle A is 
    increased by reason of the gain on such recovery which under section 
    1351(e) is considered as gain on the involuntary conversion of 
    property.

(g) Failure to pay installment

    If any installment under this section is not paid on or before the 
date fixed for its payment by this section (including any extension of 
time for the payment of such installment), the unpaid portion of the tax 
payable in installments shall be paid upon notice and demand from the 
Secretary.

(h) Cross-references

            (1) Security.--For authority of the Secretary to require 
        security in the case of an extension under this section, see 
        section 6165.
            (2) Period of limitation.--For extension of the period of 
        limitation in the case of an extension under this section, see 
        section 6503(e).

(Added Pub. L. 89-384, Sec. 1(d), Apr. 8, 1966, 80 Stat. 102; amended 
Pub. L. 93-625, Sec. 7(d)(2), (3), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 
94-455, title XIX, Secs. 1902(b)(2)(B), 1906(b)(13)(A), Oct. 4, 1976, 90 
Stat. 1806, 1834.)


                               Amendments

    1976--Subsecs. (a), (b), (d), (e), (g). Pub. L. 94-455, 
Sec. 1906(b)(13)(A), struck out ``or his delegate'' after ``Secretary''.
    Subsec. (h). Pub. L. 94-455, Secs. 1902(b)(2)(B), 1906(b)(13)(A), 
substituted ``section 6503(e)'' for ``section 6503(f)'', and struck out 
``or his delegate'' after ``Secretary''.
    1975--Subsec. (e). Pub. L. 93-625, Sec. 7(d)(2), struck out 
provision that in applying section 6601(j) (relating to the application 
of the 4-percent interest rate in the case of recoveries of foreign 
expropriation losses to which this section applies) in the case of a 
deficiency, the entire amount which was prorated to installments under 
this section shall be treated as an amount of tax the payment of which 
was extended under this section.
    Subsec. (h). Pub. L. 93-625, Sec. 7(d)(3), struck out par. (1) 
providing a cross reference for payment of interest at 4 percent per 
annum for period of an extension under section 6601(j) of this title, 
and redesignated pars. (2) and (3) as (1) and (2), respectively.


                    Effective Date of 1976 Amendment

    Amendment by section 1902(b)(2)(B) of Pub. L. 94-455 applicable to 
estates of decedents dying after Oct. 4, 1976, see section 1902(c)(1) of 
Pub. L. 94-455, set out as a note under section 2011 of this title.


                    Effective Date of 1975 Amendment

    Amendment by Pub. L. 93-625 effective July 1, 1975, and applicable 
to amounts outstanding on such date or arising thereafter, see section 
7(e) of Pub. L. 93-625, set out as an Effective Date note under section 
6621 of this title.


                             Effective Date

    Section applicable with respect to amounts received after Dec. 31, 
1964, in respect of foreign expropriation losses (as defined in section 
1351(b) of this title) sustained after Dec. 31, 1958, see section 2 of 
Pub. L. 89-384, set out as a note under section 1351 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 6503 of this title.
