N.Y. Tax Law § 976: Extensions of time

§ 976. Extensions of time. (a) General. (1) The commissioner of

taxation and finance may grant a reasonable extension of time for

payment of tax (or any installment), or for filing any return, statement

or other document required pursuant to this article, on such terms and

conditions as he may require. Except in the case of executors who are

outside the United States, no such extension for filing any return,

statement or other document shall exceed six months. Except as otherwise

provided in this article, no such extension for payment shall exceed

twelve months from the date fixed for payment.

(2) Where there is included in the value of the gross estate the value

of a reversionary or remainder interest in property, the payment of the

part of the tax imposed by this article attributable to such interest

may, at the election of the executor, be postponed until six months

after the termination of the precedent interest or interests in the

property, and the amount the payment of which is so postponed shall then

be payable, together with interest thereon. If the commissioner of

taxation and finance finds that the payment of the tax within such six

months would result in undue hardship to the estate and said

commissioner has approved payment in respect of such tax over a longer

period, he may extend the time for a payment for a reasonable period not

in excess of three years from the expiration of such six months. The

postponement of the payment of any such amount shall be under such

regulations as the commissioner of taxation and finance may prescribe,

and shall be upon condition that the executor, or any other person

liable for the tax, shall comply with subsection (c) of this section

(relating to furnishing of security).

(3) If the commissioner of taxation and finance finds that the payment

on the due date of any part of the amount of the tax imposed by this

article would result in undue hardship to the estate, he may extend the

time for payment for such period as he may deem reasonable, but not to

exceed four years from the date of death, and may require payment to be

made in annual installments.

(b) Whenever the commissioner extends the time for the payment of tax

under this section, that portion of the tax as to which an extension is

granted shall bear interest from the date the tax is required to be

paid, to the date of payment without regard to any extension of time for

the payment of the tax or filing of the return, at the rate prescribed

in subsection (a) of section six hundred eighty-four of this chapter.

(c) Furnishing of security. If any extension of time is granted for

payment of any amount of tax, the commissioner of taxation and finance

may require the taxpayer to furnish a bond issued by a surety company

approved by the superintendent of financial services as to solvency and

responsibility and authorized to transact business in this state or

other security acceptable to such commissioner in an amount not

exceeding twice the amount for which the extension of time for payment

is granted, on such terms and conditions as such commissioner may

require.

(d) Cross reference. For extensions of time for payment of estate tax

where an estate consists largely of interest in closely held businesses,

see section nine hundred ninety-seven of this article.

(e) If the decedent has a cause of action pending at the time of

death, or a cause of action arises which is related to the decedent's

death, and any recovery under the cause of action is to be taxable under

this article, the commissioner shall waive any penalty and interest

associated with such cause of action which accrues from the date that

the return disclosing such cause of action is filed, provided that such

penalty and interest may not be waived for periods beyond one year after

the date of final judgment or settlement of the cause of action.