The due date for the estate tax return and payment of estate tax for estates of decedents dying from January 1, 2010 through December 16, 2010 is September 19, 2011. However, just this week, the IRS announced that it would grant an automatic six month extension to March 19, 2012 to any taxpayer filing a Form 4768 requesting an extension to file a federal estate tax return and pay any federal estate tax which may be due.
The significance of this announcement is that it allows taxpayers an extension to March 19, 2011 to pay federal estate taxes. Normally, extensions of time to pay the federal estate tax are not automatic and require a showing of “reasonable cause” for non payment. In cases where there is any possibility that an estate tax return may be filed, it is recommended that a Form 4768 be completed and filed prior to September 19, 2011 requesting an extension of time to both file the return and pay the tax to March 19, 2012.
Our analysis (which has been vetted with other attorneys and certified public accountants) is that filing a Form 4768 requesting an extension to file a federal estate tax return and pay the tax does not prejudice or limit a taxpayer estate from later opting out of the federal estate tax in favor of “carryover basis” under IRC §1022 by filing a Form 8939. This week’s IRS announcement changed the deadline for the filing of the Form 8939 from November 15, 2011 to January 17, 2012.
Francis Burton Doyle, Esq., is the founder of WealthPLAN, with over 30 years of experience in Tax, Estate-Planning Probate, Trust Administration and Litigation. He is Certified Legal Specialist, Taxation Law and Probate, Estate Planning and Trust Law (California State Bar). Frank is the Past President of both the Santa Clara County Estate Planning Council & the Silicon Valley Planned Giving Committee. Frank is also the Past Chair of the Planning Committee, Annual Jerry A. Kasner Symposium, Santa Clara University, School of Law. Mr. Doyle provides all the course development and instruction for the Advanced Legal Training Institute.
Quote to Ponder
“The final proof of greatness lies in being able to endure criticism
without resentment.”
~Elbert Hubbard