[Code of Federal Regulations]
[Title 26, Volume 14]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR25.6161-1]

[Page 682-683]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 25_GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954--Table of Contents
 
Sec.  25.6161-1  Extension of time for paying tax or deficiency.

    (a) In general--(1) Tax shown on return. A reasonable extension of 
time to pay the amount of tax shown on the return may be granted by the 
district director at the request of the donor. The period of such 
extension shall not be in excess of six months from the date fixed for 
the payment of the tax, except that if the taxpayer is abroad the period 
of extension may be in excess of six months.
    (2) Deficiency. The time for payment of any amount determined as a 
deficiency in respect of tax imposed by Chapter 12 of the Code, or for 
payment of any part thereof may be extended by the district director at 
the request of the donor for a period not to exceed 18 months from the 
date fixed for the payment of the deficiency, as shown on the notice and 
demand from the district director, and, in exceptional cases, for a 
further period not in excess of 12 months. No extension of time for the 
payment of a deficiency shall be granted if the deficiency is due to 
negligence, to intentional disregard of rules and regulations, or to 
fraud with intent to evade tax.
    (3) Extension of time for filing distinguished. The granting of an 
extension of time for filing a return does not operate to extend the 
time for the payment of the tax or any part thereof, unless so specified 
in the extension.
    (b) Undue hardship required for extension. An extension of the time 
for payment shall be granted only upon a satisfactory showing that 
payment on the due date of the amount with respect to which the 
extension is desired will result in an undue hardship. The extension 
will not be granted upon a general statement of hardship. The term 
``undue hardship'' means more than an inconvenience to the taxpayer. It 
must appear that substantial financial loss, for example, loss due to 
the sale of property at a sacrifice price, will result to the donor from 
making payment on the due date of the amount with respect to which the 
extension is desired.

[[Page 683]]

If a market exists, the sale of the property at the current market price 
is not ordinarily considered as resulting in an undue hardship.
    (c) Application for extension. An application for an extension of 
the time for payment of the tax shown on the return, or for the payment 
of any amount determined as a deficiency, shall be in writing and shall 
be accompanied by evidence showing the undue hardship that would result 
to the donor if the extension were refused. The application shall also 
be accompanied by a statement of the assets and liabilities of the donor 
and an itemized statement showing all receipts and disbursements for 
each of the 3 months immediately preceding the due date of the amount to 
which the application relates. The application, with supporting 
documents, must be filed with the applicable district director referred 
to in paragraph (a) of Sec.  25.6091-1 regardless of whether the return 
is to be filed with, or the tax is to be paid to, such district director 
on or before the date prescribed for payment of the amount with respect 
to which the extension is desired. The application will be examined by 
the district director, and within 30 days, if possible, will be denied, 
granted, or tentatively granted subject to certain conditions of which 
the donor will be notified. If an additional extension is desired, the 
request therefor must be made to the district director on or before the 
expiration of the period for which the prior extension is granted.
    (d) Payment pursuant to extension. If an extension of time for 
payment is granted, the amount the time for payment of which is so 
extended shall be paid on or before the expiration of the period of the 
extension without the necessity of notice and demand from the district 
director. The granting of an extension of the time for payment of the 
tax or deficiency does not relieve the donor from liability for the 
payment of interest thereon during the period of the extension. See 
section 6601 and Sec.  301.6601-1 of this chapter (Regulations on 
Procedure and Administration).

[T.D. 6334, 23 FR 8904, Nov. 15, 1958, as amended by T.D. 7012, 34 FR 
7692, May 15, 1969]