§ 976. Extensions of time. (a) General. (1) The commissioner of
taxation and finance may grant a reasonable extension of time for
payment of tax (or any installment), or for filing any return, statement
or other document required pursuant to this article, on such terms and
conditions as he may require. Except in the case of executors who are
outside the United States, no such extension for filing any return,
statement or other document shall exceed six months. Except as otherwise
provided in this article, no such extension for payment shall exceed
twelve months from the date fixed for payment.

(2) Where there is included in the value of the gross estate the value
of a reversionary or remainder interest in property, the payment of the
part of the tax imposed by this article attributable to such interest
may, at the election of the executor, be postponed until six months
after the termination of the precedent interest or interests in the
property, and the amount the payment of which is so postponed shall then
be payable, together with interest thereon. If the commissioner of
taxation and finance finds that the payment of the tax within such six
months would result in undue hardship to the estate and said
commissioner has approved payment in respect of such tax over a longer
period, he may extend the time for a payment for a reasonable period not
in excess of three years from the expiration of such six months. The
postponement of the payment of any such amount shall be under such
regulations as the commissioner of taxation and finance may prescribe,
and shall be upon condition that the executor, or any other person
liable for the tax, shall comply with subsection (c) of this section
(relating to furnishing of security).

(3) If the commissioner of taxation and finance finds that the payment
on the due date of any part of the amount of the tax imposed by this
article would result in undue hardship to the estate, he may extend the
time for payment for such period as he may deem reasonable, but not to
exceed four years from the date of death, and may require payment to be
made in annual installments.

(b) Whenever the commissioner extends the time for the payment of tax
under this section, that portion of the tax as to which an extension is
granted shall bear interest from the date the tax is required to be
paid, to the date of payment without regard to any extension of time for
the payment of the tax or filing of the return, at the rate prescribed
in subsection (a) of section six hundred eighty-four of this chapter.

(c) Furnishing of security. If any extension of time is granted for
payment of any amount of tax, the commissioner of taxation and finance
may require the taxpayer to furnish a bond issued by a surety company
approved by the superintendent of financial services as to solvency and
responsibility and authorized to transact business in this state or
other security acceptable to such commissioner in an amount not
exceeding twice the amount for which the extension of time for payment
is granted, on such terms and conditions as such commissioner may
require.

(d) Cross reference. For extensions of time for payment of estate tax
where an estate consists largely of interest in closely held businesses,
see section nine hundred ninety-seven of this article.

(e) If the decedent has a cause of action pending at the time of
death, or a cause of action arises which is related to the decedent's
death, and any recovery under the cause of action is to be taxable under
this article, the commissioner shall waive any penalty and interest
associated with such cause of action which accrues from the date that
the return disclosing such cause of action is filed, provided that such
penalty and interest may not be waived for periods beyond one year after
the date of final judgment or settlement of the cause of action.