109 HR 5488 IH: To amend the Internal Revenue Code of 1986 to extend the U.S. House of Representatives 2006-05-25 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 5488 IN THE HOUSE OF REPRESENTATIVES May 25, 2006 Mr. Aderholt introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to extend the period of limitation for filing a claim for credit or refund of an estate tax overpayment attributable to litigation continuing after the return for the estate is filed.

1.

Short title

This Act may be cited as the Estate Litigation Fairness Act.

2.

Extending period of limitation on filing claim for credit or refund of estate tax overpayments attributable to litigation continuing after the return for the estate is filed

(a)

In general

Section 6511 of the Internal Revenue Code of 1986 (relating to limitations on credit or refund) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: (i)

Special rule for estate tax overpayments attributable to litigation continuing after the return for the estate is filed

(1)

Extension of period of limitation

If the claim for credit or refund relates to an overpayment of tax imposed by chapter 11 by reason of an expense— (A)which is paid or incurred after the return for the estate is filed, and (B)which would not have been so paid or incurred but for litigation continuing after the filing of such return, then the 3-year period of limitation described in subsections (a) and (b) shall not expire before the end of the 4-year period beginning on the first date such litigation is no longer subject to judicial review.(2)

Amount of credit or refund

In the case of a claim described in paragraph (1), the amount of the credit or refund may exceed the portion of the tax paid within the period prescribed in subsection (b)(2). (3)

Termination

This subsection shall not apply to estates of decedents dying after the last day of the 1-year period beginning on the date of the enactment of this subsection. . (b)

Effective date

(1)

In general

The amendments made by this section shall apply to estates of decedents dying after October 1, 1998. (2)

Waiver of statute of limitations

If the credit or refund of any overpayment of tax resulting from the amendments made by subsection (a) is prevented at any time before the close of the 1-year period beginning on the date of the enactment of this Act by the operation of any law or rule of law (including res judicata), refund or credit of such overpayment (to the extent attributable to such amendments) may, nevertheless, be made or allowed if claim therefor is filed before the close of such 1-year period.