The estate elects to pay the first installment on the maximum extension date of 5 years after the §6151(a) return due date (determined without regard to any extension of time to file).

Because of cash flow considerations the estate elects to pay the first installment on July 1, 2021, which is within the maximum extension period of 5 years after the §6151(a) return due date (determined without regard to any extension of time to file). However, the specific day within July 2021 must be the same as the day on which the return was due, which was the 17th day of November, 2016. Cincinnati Campus will adjust the date selected within July 2021 to the 17th day notwithstanding the election statement specifying a payment date of July 1.

Date of death is May 31, 2015. The return due date is in February of the leap year of 2016. There is no corresponding day number 31 in February 2016, so the return due date is the last day of February, the ninth month after the date of death, or February 29, 2016. Section 6166(f) provides that interest for the first 5 years is payable annually in 1-year increments after the return due date. However, there is no day number 29 in February in non-leap years. Cincinnati Campus will therefore use February 29 as the anniversary due date for all leap years, and February 28 as the anniversary due date for all non-leap years. (Cincinnati Campus has actually administered §6166 installment cases with this situation.)

6166(a)(3) Comment 1:  The provision regarding the ability to select a date of the executor's choosing for payment of the first installment applies only for a regular §6166(a) 14-year (or less) installment election - it does not apply for an election under sections 6166(b)(7), 6166(b)(8), or 6166(b)(10), because the date for payment of the first installment in those situations is set by statute as the date prescribed by section 6151(a) (the original return due date determined without regard to any extension of time for filing the return).

6166(a)(3) Comment 2:  In a section 6166(b)(7), 6166(b)(8), or 6166(b)(10) election, the executor cannot select a date for payment of the second installment that is different from the original return due date (determined without regard to any extension of time for filing the return) plus 1 year. Sections 6166(b)(7)(A)(ii), 6166(b)(8)(A)(ii), and 6166(b)(10)(A)(ii) each provide "[t]he executor shall be treated as having selected under subsection (a)(3) the date prescribed by section 6151(a)." Each succeeding installment must be paid on or before the date which is 1 year after the date prescribed for payment of the preceding installment.