PURPOSE: This rule establishes the manner in which an extension of time to pay Missouri estate taxes is allowed pursuant to section 145.551.3., RSMo (1986) and for the acceleration of the unpaid tax for failure to make a required interest payment.

1. (1) When an estate has been granted an extension of time for paying its federal estate tax pursuant to 26 U.S.C. 6166, the filing of a copy of the acceptance of the extension by the Internal Revenue Service with the director of revenue shall automatically extend the time for the payment of the Missouri estate tax required by sections 145.011–145.995, RSMo. The extension of time to pay Missouri estate tax pursuant to section 145.551.3., RSMo (1986) is equal to the period of time granted by the Internal Revenue Service pursuant to 25 U.S.C. 6166. For decedents dying prior to August 13, 1986 no extension of time to pay shall exceed four (4) years. The period of extension shall be measured from the date fixed for filing the Missouri estate tax return without regard to any extension of time for filing the return.

2. (2) If the estate has not received acceptance of its election to pay its federal estate tax pursuant to 26 U.S.C. 6166 by the Internal Revenue Service at the time of filing the Missouri estate tax return, it shall file, with the director of revenue, a copy of the application for extension it filed with the Internal Revenue Service. Upon receipt of the application, the estate will be granted a conditional extension of time to pay its Missouri estate tax pursuant to section 145.551.3., RSMo (1986) for a period of one (1) year. The one (1)-year period shall be measured from the date fixed for filing the Missouri estate tax return without regard to any extension of time for filing the return. The estate must provide proof of acceptance by the Internal Revenue Service of its application for extension of time to pay pursuant to 26 U.S.C. 6166 within the one (1)-year period.

   1. (A) If the estate has not provided a copy of the acceptance by the Internal Revenue Service of its election under 26 U.S.C. 6166 within the one (1)-year extension granted in section (2) of this rule, the conditional extension of time to pay Missouri estate tax is void and the unpaid tax is delinquent as of the date originally fixed for filing the Missouri estate tax return and subject to additions for failure to pay pursuant to section 143.751.2., RSMo (1986). Interest shall be calculated at the statutory rate pursuant to section 32.065, RSMo (1986).
   2. (B) If the estate provides a copy of the acceptance by the Internal Revenue Service of its election under 26 U.S.C. 6166 within the one (1)-year period the extension of time to pay Missouri estate tax shall be as provided in section (1) of this rule.

3. (3) Where the estate has been granted a valid extension of time to pay pursuant to section 145.551.3., RSMo (1986), interest on the unpaid tax shall accrue and become due annually on the unpaid tax at the same rate as provided in 26 U.S.C. 6601 (see 12 CSR 10- 8.160).

   1. (A) The first annual interest payment shall be due one (1) year from the date originally fixed for filing the Missouri estate tax return without regard to any extension of time for filing the return. The remaining interest payments shall be due on the same date annually.
   2. (B) Failure to timely pay an annual interest payment will result in an acceleration of the unpaid tax. Full payment of this accelerated tax is due upon notice and demand from the director of revenue or his/her delegate. Failure to pay the unpaid tax and interest upon demand will result in a delinquency and subject the estate to additions for failure to pay pursuant to section 143.751.2., RSMo (1986). After issuance of the ten (10)-day demand notice, interest shall be calculated at the statutory rate as provided in section 32.065, RSMo (1986).

AUTHORITY: section 145.961, RSMo 1986.* Original rule filed Feb. 25, 1986, effective June 28, 1986. Amended: Filed March 31, 1988, effective Sept. 29, 1988.

*Original authority: 145.961, RSMo 1980.