Foreign Expropriation Loss Recovery Installment Election

§ 6167. Extension of time for payment of tax attributable to recovery of foreign expropriation losses(a) Extension allowed by electionIf—(1) a corporation has a recovery of a foreign expropriation loss to which section 1351 applies, and (2) the portion of the recovery received in money is less than 25 percent of the amount of such recovery (as defined in section 1351(c)) and is not greater than the tax attributable to such recovery, the tax attributable to such recovery shall, at the election of the taxpayer, be payable in 10 equal installments on the 15th day of the fourth month of each of the taxable years following the taxable year of the recovery. Such election shall be made at such time and in such manner as the Secretary may prescribe by regulations. If an election is made under this subsection, the provisions of this subtitle shall apply as though the Secretary were extending the time for payment of such tax. (b) Extension permitted by SecretaryIf a corporation has a recovery of a foreign expropriation loss to which section 1351 applies and if an election is not made under subsection (a), the Secretary may, upon finding that the payment of the tax attributable to such recovery at the time otherwise provided in this subtitle would result in undue hardship, extend the time for payment of such tax for a reasonable period or periods not in excess of 9 years from the date on which such tax is otherwise payable. (c) Acceleration of paymentsIf—(1) an election is made under subsection (a), (2) during any taxable year before the tax attributable to such recovery is paid in full—(A) any property (other than money) received on such recovery is sold or exchanged, or (B) any property (other than money) received on any sale or exchange described in subparagraph (A) is sold or exchanged, and (3) the amount of money received on such sale or exchange (reduced by the amount of the tax imposed under chapter 1 with respect to such sale or exchange), when added to the amount of money—(A) received on such recovery, and (B) received on previous sales or exchanges described in subparagraphs (A) and (B) of paragraph (2) (as so reduced), exceeds the amount of money which may be received under subsection (a)(2), an amount of the tax attributable to such recovery equal to such excess shall be payable on the 15th day of the fourth month of the taxable year following the taxable year in which such sale or exchange occurs. The amount of such tax so paid shall be treated, for purposes of this section, as a payment of the first unpaid installment or installments (or portion thereof) which become payable under subsection (a) following such taxable year.