ACTIONS FOR REFUND WITH RESPECT TO CERTAIN ESTATES WHICH HAVE ELECTED THE INSTALLMENT METHOD OF PAYMENT.

SEC. 3104. ACTIONS FOR REFUND WITH RESPECT TO CERTAIN ESTATES WHICH HAVE ELECTED THE INSTALLMENT METHOD OF PAYMENT. (a) In General.— Section 7422 is amended by redesignating subsection (j) as subsection (k) and by inserting after subsection (i) the following new subsection: “(j) Special Rule for Actions With Respect to Estates for Which an Election Under Section 6166 Is Made.— “(1) In general.— The district courts of the United States and the United States Court of Federal Claims shall not fail to have jurisdiction over any action brought by the representative of an estate to which this subsection applies to determine the correct amount of the estate tax liability of such estate (or for any refund with respect thereto) solely because the full amount of such liability has not been paid by reason of an election under section 6166 with respect to such estate. 112 STAT. 732 “(2) Estates to which subsection applies.— This subsection shall apply to any estate if, as of the date the action is filed— “(A) no portion of the installments payable under section 6166 have been accelerated; “(B) all such installments the due date for which is on or before the date the action is filed have been paid; “(C) there is no case pending in the Tax Court with respect to the tax imposed by section 2001 on the estate and, if a notice of deficiency under section 6212 with respect to such tax has been issued, the time for filing a petition with the Tax Court with respect to such notice has expired; and “(D) no proceeding for declaratory judgment under section 7479 is pending. “(3) Prohibition on collection of disallowed liability.— If the court redetermines under paragraph (1) the estate tax liability of an estate, no part of such liability which is disallowed by a decision of such court which has become final may be collected by the Secretary, and amounts paid in excess of the installments determined by the court as currently due and payable shall be refunded.”. (b) Extension of Time To File Refund Suit.— Section 7479 (relating to declaratory judgments relating to eligibility of estate with respect to installment payments under section 6166) is amended by adding at the end the following new subsection: “(c) Extension of Time To File Refund Suit.— The 2-year period in section 6532(a)( 1) for filing suit for refund after disallowance of a claim shall be suspended during the 90-day period after the mailing of the notice referred to in subsection (b)(3) and, if a pleading has been filed with the Tax Court under this section, until the decision of the Tax Court has become final.”. (c) Effective Date.— The amendments made by this section shall apply to any claim for refund filed after the date of the enactment of this Act.