Section 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  insurance  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.