(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 financial services 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.