§6324A Special Lien for Estate Tax Deferred Under Section 6166

Summary

Creates a legal claim by the United States on certain estate property when the estate’s executor chooses the special estate-tax deferral under section 6166 and files a written agreement. The claim covers the total tax amount deferred plus interest and related charges. The property covered must be likely to survive the deferral period and must be named in the agreement. The government can require that the value of that property be no more than the deferred amount plus the interest due for the first 4 years. If the named property is worth less, the Treasury may accept a bond for the shortfall. The written agreement must be signed by everyone who has an interest in the named property and must name one person to deal with the Treasury about the claim. The claim is not effective against buyers or certain creditors until the Treasury files a required notice. The claim starts when the executor is released from liability (or when notice is filed, if earlier) and stays until the tax is paid or can no longer be enforced. If the property’s value falls below the unpaid amount, the Treasury can demand more security and give 90 days to comply or the deferred payments may be accelerated. Definitions: deferred amount (total deferred tax), required interest amount (interest over the first 4 years), deferral period (the time payments are delayed), and a rule for deficiencies.