§ 961 — Effect of federal determination

§ 961. Effect of federal determination. (a) General.-- A final federal\ndetermination as to\n (1) the inclusion in the federal gross estate of any item of property\nor interest in property,\n (2) the allowance of any item claimed as a deduction from the federal\ngross estate, or\n (3) the value or amount of any such item, shall also determine the\nsame issue for purposes of the tax under this article unless such final\nfederal determination is shown by a preponderance of the evidence to be\nerroneous.\n (b) Definition.-- For the purpose of this section a final federal\ndetermination means:\n (1) A decision by the tax court or a judgment, decree or other order\nby any court of competent jurisdiction which has become final.\n (2) A final disposition by the secretary of the treasury or his\ndelegate of a claim for refund. Such disposition shall be deemed to have\noccurred--\n (A) as to items of the claim which are allowed, upon allowance of\nrefund or upon disallowance of the claim by reason of offsetting items;\nand\n (B) as to items of the claim which are disallowed, or as to items\napplied by the secretary of the treasury or his delegate as an offset\nagainst the claim, (i) upon expiration of the time for instituting suit\nfor refund with respect to such items, unless suit is instituted before\nthe expiration of such time, or (ii) upon filing with the surrogate or\nappraiser a written statement, in such form as may be required by the\ntax commission, that suit for refund will not be instituted.\n (3) A closing agreement made under section seven thousand one hundred\ntwenty-one of the internal revenue code.\n (4) An assessment pursuant to a waiver of restrictions on assessment,\nor a notification in writing issued by the secretary of the treasury or\nhis delegate that the federal estate tax return has been accepted as\nfiled where such notification is issued after an audit of such return,\nunless the executor shall have filed with the commissioner of taxation\nand finance a written statement, in such form as may be required by the\ncommissioner, that a claim for refund of federal estate taxes has been\nor will be filed.\n (c) Items determined.-- If there has been a final federal\ndetermination with respect to a decedent's federal estate tax, any item\nentering into the computation of such tax shall be deemed to have been\nthe subject of the final federal determination, whether or not\nspecifically adjusted thereby.\n