§ 961. Effect of federal determination. (a) General.-- A final federal
determination as to

(1) the inclusion in the federal gross estate of any item of property
or interest in property,

(2) the allowance of any item claimed as a deduction from the federal
gross estate, or

(3) the value or amount of any such item, shall also determine the
same issue for purposes of the tax under this article unless such final
federal determination is shown by a preponderance of the evidence to be
erroneous.

(b) Definition.-- For the purpose of this section a final federal
determination means:

(1) A decision by the tax court or a judgment, decree or other order
by any court of competent jurisdiction which has become final.

(2) A final disposition by the secretary of the treasury or his
delegate of a claim for refund. Such disposition shall be deemed to have
occurred--

(A) as to items of the claim which are allowed, upon allowance of
refund or upon disallowance of the claim by reason of offsetting items;
and

(B) as to items of the claim which are disallowed, or as to items
applied by the secretary of the treasury or his delegate as an offset
against the claim, (i) upon expiration of the time for instituting suit
for refund with respect to such items, unless suit is instituted before
the expiration of such time, or (ii) upon filing with the surrogate or
appraiser a written statement, in such form as may be required by the
tax commission, that suit for refund will not be instituted.

(3) A closing agreement made under section seven thousand one hundred
twenty-one of the internal revenue code.

(4) An assessment pursuant to a waiver of restrictions on assessment,
or a notification in writing issued by the secretary of the treasury or
his delegate that the federal estate tax return has been accepted as
filed where such notification is issued after an audit of such return,
unless the executor shall have filed with the commissioner of taxation
and finance a written statement, in such form as may be required by the
commissioner, that a claim for refund of federal estate taxes has been
or will be filed.

(c) Items determined.-- If there has been a final federal
determination with respect to a decedent's federal estate tax, any item
entering into the computation of such tax shall be deemed to have been
the subject of the final federal determination, whether or not
specifically adjusted thereby.