§6167 Extension of Time for Payment of Tax Attributable to Recovery of Foreign Expropriation Losses

Summary

A corporation that gets money for a foreign government taking its property can choose to pay the tax on that recovery in 10 equal yearly payments if two things are true: the cash it actually received is less than 25% of the total recovery, and that cash is not more than the tax due on the recovery. Those 10 payments are due on the 15th day of the fourth month of each taxable year after the year the recovery happened. The corporation must make the election when and how the Secretary of the Treasury requires. If the election is made, the tax rules treat those payments as a valid extension. If no election is made, the Secretary may delay payment up to 9 years if paying on time would cause undue hardship. If an election was made but later noncash property received in the recovery (or property from its sale) is sold and the cash from those sales plus prior cash received goes over the allowed amount, the extra tax becomes due on the 15th day of the fourth month of the next taxable year and is applied to the next unpaid installment(s). Any assessed deficiency is spread across the installments; parts not yet due are collected with those installments and parts already due are collected on notice, except when the deficiency is caused by negligence, intentional disregard, or fraud. Interest on unpaid portions is paid each year with the installment. If any installment is not paid on time, the remaining unpaid tax is due on notice. "Tax attributable to the recovery" means the extra tax under 1351(d)(1) plus the increase in regular income tax from gain treated under 1351(e).