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HS330 Real Exam Prep DEMO

Question 12: When the owner of a closely held business dies, the payment of a portion of the federal estate
tax may be deferred for a period of several years if the estate otherwise qualifies under the
provisions of IRC Section 6166. Which of the following statements concerning this deferral of federal
estate tax is correct?
A. The interest rate on the deferred tax is determined by the prime rate in effect on the date of
death.
B. The interest on the unpaid estate tax is payable over the first 10 years, after which the tax plus
interest on the balance is payable in equal installments for the last 5 years.
C. To qualify for the tax deferral, the closely held business must represent more than 50 percent of
the value of the decedent's adjusted gross estate.
D. Under certain circumstances, the estate will forfeit its right to tax deferral, and all the remaining
unpaid estate tax will become due and payable immediately.
Correct Answer: D
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10 days ago

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George    Web Design, Responsive    3 comments

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1 weeks ago

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tree month ago

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