
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: 26USC6324A]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 64--COLLECTION
 
                      Subchapter C--Lien for Taxes
 
                             PART II--LIENS
 
Sec. 6324A. Special lien for estate tax deferred under section 
        6166
        

(a) General rule

    In the case of any estate with respect to which an election has been 
made under section 6166, if the executor makes an election under this 
section (at such time and in such manner as the Secretary shall by 
regulations prescribe) and files the agreement referred to in subsection 
(c), the deferred amount (plus any interest, additional amount, addition 
to tax, assessable penalty, and costs attributable to the deferred 
amount) shall be a lien in favor of the United States on the section 
6166 lien property.

(b) Section 6166 lien property

                           (1) In general

        For purposes of this section, the term ``section 6166 lien 
    property'' means interests in real and other property to the extent 
    such interests--
            (A) can be expected to survive the deferral period, and
            (B) are designated in the agreement referred to in 
        subsection (c).

               (2) Maximum value of required property

        The maximum value of the property which the Secretary may 
    require as section 6166 lien property with respect to any estate 
    shall be a value which is not greater than the sum of--
            (A) the deferred amount, and
            (B) the required interest amount.

    For purposes of the preceding sentence, the value of any property 
    shall be determined as of the date prescribed by section 6151(a) for 
    payment of the tax imposed by chapter 11 and shall be determined by 
    taking into account any encumbrance such as a lien under section 
    6324B.

              (3) Partial substitution of bond for lien

        If the value required as section 6166 lien property pursuant to 
    paragraph (2) exceeds the value of the interests in property covered 
    by the agreement referred to in subsection (c), the Secretary may 
    accept bond in an amount equal to such excess conditioned on the 
    payment of the amount extended in accordance with the terms of such 
    extension.

(c) 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--
        (1) consenting to the creation of the lien under this section 
    with respect to such property, and
        (2) designating a responsible person who shall be the agent for 
    the beneficiaries of the estate and for the persons who have 
    consented to the creation of the lien in dealings with the Secretary 
    on matters arising under section 6166 or this section.

(d) Special rules

                 (1) Requirement that lien be filed

        The lien imposed by this section shall not be valid as against 
    any purchaser, holder of a security interest, mechanic's lien, or 
    judgment lien creditor until notice thereof which meets the 
    requirements of section 6323(f) has been filed by the Secretary. 
    Such notice shall not be required to be refiled.

                         (2) Period of lien

        The lien imposed by this section shall arise at the time the 
    executor is discharged from liability under section 2204 (or, if 
    earlier, at the time notice is filed pursuant to paragraph (1)) and 
    shall continue until the liability for the deferred amount is 
    satisfied or becomes unenforceable by reason of lapse of time.

                           (3) Priorities

        Even though notice of a lien imposed by this section has been 
    filed as provided in paragraph (1), such lien shall not be valid--

        (A) Real property tax and special assessment liens

            To the extent provided in section 6323(b)(6).

        (B) Real property subject to a mechanic's lien for repairs and 
                improvement

            In the case of any real property subject to a lien for 
        repair or improvement, as against a mechanic's lienor.

        (C) Real property construction or improvement financing 
                agreement

            As against any security interest set forth in paragraph (3) 
        of section 6323(c) (whether such security interest came into 
        existence before or after tax lien filing).

    Subparagraphs (B) and (C) shall not apply to any security interest 
    which came into existence after the date on which the Secretary 
    filed notice (in a manner similar to notice filed under section 
    6323(f)) that payment of the deferred amount has been accelerated 
    under section 6166(g).

             (4) Lien to be in lieu of section 6324 lien

        If there is a lien under this section on any property with 
    respect to any estate, there shall not be any lien under section 
    6324 on such property with respect to the same estate.

       (5) Additional lien property required in certain cases

        If at any time the value of the property covered by the 
    agreement is less than the unpaid portion of the deferred amount and 
    the required interest amount, the Secretary may require the addition 
    of property to the agreement (but he may not require under this 
    paragraph that the value of the property covered by the agreement 
    exceed such unpaid portion). If property having the required value 
    is not added to the property covered by the agreement (or if other 
    security equal to the required value is not furnished) within 90 
    days after notice and demand therefor by the Secretary, the failure 
    to comply with the preceding sentence shall be treated as an act 
    accelerating payment of the installments under section 6166(g).

                   (6) Lien to be in lieu of bond

        The Secretary may not require under section 6165 the furnishing 
    of any bond for the payment of any tax to which an agreement which 
    meets the requirements of subsection (c) applies.

(e) Definitions

    For purposes of this section--

                         (1) Deferred amount

        The term ``deferred amount'' means the aggregate amount deferred 
    under section 6166 (determined as of the date prescribed by section 
    6151(a) for payment of the tax imposed by chapter 11).

                    (2) Required interest amount

        The term ``required interest amount'' means the aggregate amount 
    of interest which will be payable over the first 4 years of the 
    deferral period with respect to the deferred amount (determined as 
    of the date prescribed by section 6151(a) for the payment of the tax 
    imposed by chapter 11).

                         (3) Deferral period

        The term ``deferral period'' means the period for which the 
    payment of tax is deferred pursuant to the election under section 
    6166.

       (4) Application of definitions in case of deficiencies

        In the case of a deficiency, a separate deferred amount, 
    required interest amount, and deferral period shall be determined as 
    of the due date of the first installment after the deficiency is 
    prorated to installments under section 6166.

(Added Pub. L. 94-455, title XX, Sec. 2004(d)(1), Oct. 4, 1976, 90 Stat. 
1868; amended Pub. L. 95-600, title VII, Sec. 702(e)(1), Nov. 6, 1978, 
92 Stat. 2929; Pub. L. 97-34, title IV, Sec. 422(e)(6)(A)-(C), Aug. 13, 
1981, 95 Stat. 316.)


                               Amendments

    1981--Pub. L. 97-34, Sec. 422(e)(6)(C), struck out ``or 6166A'' 
after ``section 6166'' in section catchline.
    Subsecs. (a), (c)(2). Pub. L. 97-34, Sec. 422(e)(6)(A), struck out 
``or 6166A'' after ``section 6166''.
    Subsec. (d)(3), (5). Pub. L. 97-34, Sec. 422(e)(6)(B), struck out 
``or 6166A(h)'' after ``section 6166(g)''.
    Subsec. (e)(1), (3), (4). Pub. L. 97-34, Sec. 422(e)(6)(A), struck 
out ``or 6166A'' after ``section 6166''.
    1978--Subsec. (b)(2)(B). Pub. L. 95-600, Sec. 702(e)(1)(B), 
substituted ``required interest amount'' for ``aggregate interest 
amount''.
    Subsec. (d)(5). Pub. L. 95-600, Sec. 702(e)(1)(C), substituted 
``required interest amount'' for ``aggregate interest amount''.
    Subsec. (e)(2). Pub. L. 95-600, Sec. 702(e)(1)(A), substituted 
``Required interest amount'' for ``Aggregate interest amount'' in 
heading and in text ``required interest amount'', ``over the first 4 
years of the deferral period'' and ``for the payment'' for ``aggregate 
interest amount'', ``over the deferral period'' and ``for payment'', 
respectively.
    Subsec. (e)(4). Pub. L. 95-600, Sec. 702(e)(1)(D), substituted 
``required interest amount'' for ``aggregate interest amount''.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-34 applicable to estates of decedents dying 
after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97-34, set out as 
a note under section 6166 of this title.


                    Effective Date of 1978 Amendment

    Section 702(e)(2) of Pub. L. 95-600 provided that: ``The amendments 
made by this section [amending this section] shall apply to the estates 
of decedents dying after December 31, 1976.''

                  Section Referred to in Other Sections

    This section is referred to in sections 2204, 6324B, 6166 of this 
title.
