CLARIFICATION OF JUDICIAL REVIEW OF ELIGIBILITY FOR EXTENSION OF TIME FOR PAYMENT OF ESTATE TAX.

SEC. 505. CLARIFICATION OF JUDICIAL REVIEW OF ELIGIBILITY FOR EXTENSION OF TIME FOR PAYMENT OF ESTATE TAX. (a) In General.—Part IV of subchapter C of chapter 76 of the Internal Revenue Code of 1986 (relating to declaratory judgments) is amended by adding at the end the following new section: “SEC. 7479. DECLARATORY JUDGMENTS RELATING TO ELIGIBILITY OF ESTATE WITH RESPECT TO INSTALLMENT PAYMENTS UNDER SECTION 6166. “(a) Creation of remedy.—In a case of actual controversy involving a determination by the Secretary of (or a failure by the Secretary to make a determination with respect to)— “(1) whether an election may be made under section 6166 (relating to extension of time for payment of estate tax where estate consists largely of interest in closely held business) with respect to an estate, or “(2) whether the extension of time for payment of tax provided in section 6166(a) has ceased to apply with respect to an estate, upon the filing of an appropriate pleading, the Tax Court may make a declaration with respect to whether such election may be made or whether such extension has ceased to apply. Any such declaration shall have the force and effect of a decision of the Tax Court and shall be reviewable as such. “(b) Limitations.— “(1) Petitioner.—A pleading may be filed under this section, with respect to any estate, only— “(A) by the executor of such estate, or “(B) by any person who has assumed an obligation to make payments under section 6166 with respect to such estate (but only if each other such person is joined as a party). “(2) Exhaustion of administrative remedies.—The court shall not issue a declaratory judgment or decree under this section in any proceeding unless it determines that the petitioner has exhausted all available administrative remedies within the Internal Revenue Service. A petitioner shall be deemed to have exhausted its administrative remedies with respect to a failure of the Secretary to make a determination at the expiration of 180 days after the date on which the request for such determination was made if the petitioner has taken, in a timely manner, all reasonable steps to secure such determination. “(3) Time for bringing action.—If the Secretary sends by certified or registered mail notice of his determination as described in subsection (a) to the petitioner, no proceeding may be initiated under this section unless the pleading is filed before the 91st day after the date of such mailing”.111 STAT. 855 (b) Clerical Amendment.—The table of sections for part IV of subchapter C of chapter 76 of such Code is amended by adding at the end the following new item: “Sec. 7479. Declaratory judgments relating to eligibility of estate with respect to installment payments under section 6166.”. (c) Effective Date.—The amendments made by this section shall apply to the estates of decedents dying after the date of the enactment of this Act.