SECTION 4. PROCEDURE

.01 Making a § 503(d)(2) Election. After August 5, 1997, but before January 1, 1999, an estate may make a § 503(d)(2) election by writing a letter to the Service Center where the next installment of estate tax or interest is due. If an estate of a decedent dying before January 1, 1998, has not filed an estate tax return as of January 26, 1998, the letter may be attached to the estate tax return. No § 503(d)(2) election may be made before a § 6166 election is made. The letter must include the following information:

(1) the decedent’s name; (2) the estate’s EIN; (3) a statement that the letter is an election under § 503(d)(2) of the Taxpayer Relief Act of 1997; and

(4) the due date of the installment of estate tax or interest for which the election is to be effective. The letter must be signed and dated by the executor. Once made, the § 503(d)(2) election cannot be modified or revoked.

.02 Effective Date of the § 503(d)(2) Election. Generally, a § 503(d)(2) election is effective beginning with the first

installment of estate tax or interest due on or after the date the election is filed with the appropriate Service Center. However, a § 503(d)(2) election made by April 27, 1998, will be effective beginning with any installment, designated by the executor, due after August 5, 1997, and on or before April 27, 1998. Any assessment that was proper when made, but that becomes excessive as a result of the election, will be abated. Future installments due will be calculated and any overpayment of an installment of either tax or interest will be applied to the next installment in accordance with § 6403.