[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1370 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1370

   To amend the Internal Revenue Code of 1986 to extend the time for 
          payment of the estate tax on certain timber stands.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 14, 1999

  Mr. Shelby introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to extend the time for 
          payment of the estate tax on certain timber stands.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXTENSION OF TIME FOR PAYMENT OF ESTATE TAX ON CERTAIN 
              TIMBER STANDS.

    (a) In General.--Subchapter B of chapter 62 of the Internal Revenue 
Code of 1986 (relating to extensions of time for payment) is amended by 
adding at the end the following:

``SEC. 6168. EXTENSION OF TIME FOR PAYMENT OF ESTATE TAX ON CERTAIN 
              TIMBER STANDS.

    ``(a) In General.--In the case of an interest in a qualified timber 
property which is included in determining the gross estate of a 
decedent who was (at the date of his death) a citizen or resident of 
the United States, the executor may elect to pay part or all of the tax 
imposed by section 2001 on or before the date which is the earliest 
of--
            ``(1) the date the property is no longer qualified timber 
        property,
            ``(2) the date the individual who inherited the interest in 
        the qualified timber property either transfers the interest or 
        dies, or
            ``(3) the date which is 25 years after the date of death of 
        the decedent.
    ``(b) Limitation.--The maximum amount of tax which may be paid 
under this subsection shall be an amount which bears the same ratio to 
the tax imposed by section 2001 (reduced by the credits against such 
tax) as--
            ``(1) the fair market value of the interest in the 
        qualified timber property, bears to
            ``(2) the adjusted gross estate of the decedent.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualified timber property.--The term `qualified 
        timber property' means trees and any real property on which 
        such trees are growing which is--
                    ``(A) located in the United States, and
                    ``(B) used in timber operations (as defined in 
                section 2032A(e)(13)(C)).
            ``(2) Adjusted gross estate.--The term, `adjusted gross 
        estate' means the value of the gross estate reduced by the sum 
        of the amounts allowable as a deduction under section 2053 or 
        2054. Such sum shall be determined on the basis of the facts 
        and circumstances in existence on the date (including 
        extensions) for filing the return of tax imposed by section 
        2001 (or, if earlier, the date on which such return is filed).
            ``(3) Certain transfers at death of heir disregarded.--
        Subsection (a)(2) shall not apply to any transfer by reason of 
        death so long as such transfer is to a member of the family 
        (within the meaning of section 267(c)(4)) of the transferor in 
        such transfer.
    ``(d) Election.--Any election under subsection (a) shall be made 
not later than the time prescribed by section 6075(a) for filing the 
return of tax imposed by section 2001 (including extensions thereof), 
and shall be made in such manner as the Secretary shall by regulations 
prescribe. If an election under subsection (a) is made, the provisions 
of this subtitle shall apply as though the Secretary were extending the 
time for payment of the tax.
    ``(e) Time for Payment of Interest.--If the time for payment of 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 
at the time of the payment of the tax.
    ``(f) Special Rule for Certain Direct Skips.--To the extent that an 
interest in a qualified timber property is the subject of a direct skip 
(within the meaning of section 2612(c)) occurring at the same time as 
and as a result of the decedent's death, then for purposes of this 
section any tax imposed by section 2601 on the transfer of such 
interest shall be treated as if it were additional tax imposed by 
section 2001.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to the application of this section.
    ``(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) Lien.--For special lien (in lieu of bond) in the case 
        of an extension under this section, see section 6324A.
            ``(3) Period of limitation.--For extension of the period of 
        limitation in the case of an extension under this section, see 
        section 6503(d).
            ``(4) Interest.--For provisions relating to interest on tax 
        payable under this section, see subsection (j) of section 
        6601.''.
    (b) Conforming Amendments.--
            (1) Section 163(k) of the Internal Revenue Code of 1986 is 
        amended by striking ``6166'' in the heading and the text and 
        inserting ``6166 or 6168''.
            (2) Section 2053(c)(1)(D) of such Code is amended--
                    (A) by striking ``6166'' and inserting ``6166 or 
                6168'', and
                    (B) by striking ``6166'' in the heading and 
                inserting ``6166 or 6168''.
            (3) The following provisions of such Code are amended by 
        striking ``or 6166'' each place it appears and inserting 
        ``6166, or 6168'':
                    (A) Section 2056A(b)(10)(A).
                    (B) Section 2204(a).
                    (C) Section 2204(b).
                    (D) Section 6503(d).
            (4) Section 2011(c)(2) of such Code is amended by striking 
        ``or 6166'' and inserting ``, 6166, or 6168'':
            (5) The following provisions of such Code are amended by 
        inserting ``or 6168'' after ``6166'' each place it appears:
                    (A) Section 2204(c).
                    (B) Section 6601(j) (except the second sentence of 
                paragraph (1)).
                    (C) Section 7481(d).
            (6) Section 6161(a)(2) of such Code is amended--
                    (A) in subparagraph (A), by striking ``or'' at the 
                end,
                    (B) in subparagraph (B), by adding ``or'' at the 
                end,
                    (C) in the matter following subparagraph (B)--
                            (i) by striking ``subparagraph (B)'' and 
                        inserting ``subparagraph (B) or (C)'', and
                            (ii) by inserting ``or payment'' after 
                        ``installment'', and
                    (D) by inserting after subparagraph (B) the 
                following:
                    ``(C) any part of the payment determined under 
                section 6168,''.
            (7) Section 6324A of such Code is amended--
                    (A) by adding at the end the following:
    ``(f) Application of Section to Deferred Tax Under Section 6168.--
Rules similar to the rules of this section shall apply to the amount of 
tax and interest deferred under section 6168 (determined as of the date 
prescribed by section 6151(a) for payment of the tax imposed by chapter 
11).'', and
                    (B) in the title, by striking ``estate tax deferred 
                under section 6166'' and inserting ``deferred estate 
                tax''.
            (8) The table of sections for subchapter B of chapter 62 of 
        such Code is amended by adding at the end the following:

        ``Sec. 6168. Extension of time for payment of estate tax on 
                            certain timber stands.''.
            (9) The item relating to section 6324A in the table of 
        sections for subchapter C of chapter 64 of such Code is amended 
        by striking ``estate tax deferred under section 6166'' and 
        inserting ``deferred estate tax''.
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying after the date of enactment of this 
Act.
                                 <all>