Kerry L. Spindler, Esq., Goulston & Storrs, PC
On September 13, 2011, the IRS released Notice 2011-76, providing the following:
- An executor or administrator of an estate of a decedent who died in 2010 will receive an automatic six month extension of time to file an estate tax return (Form 706 or Form 706-NA) and pay the estate tax due if he or she timely files Form 4768, Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes. Thus, an executor or administrator who files Form 4768 on or before September 19, 2011 will receive an automatic extension to March 19, 2012.[1] No substantiation of the reason for the requested extension is required.
- The due date of Form 8939, Allocation of Increase in Basis of Property Acquired From a Decedent is extended from November 15, 2011 to January 17, 2012.[2] The IRS has not yet released a final Form 8939.
- Allocation of a decedent’s available GST exemption on Schedule R or R-1 attached to a timely filed Form 8939 is a timely allocation effective as of the decedent’s date of death. Automatic allocation rules apply if the executor or administrator timely files Form 8939 without attaching either Schedule. Automatic allocation rules also apply if the executor or administrator does not make a § 1022 Election, or timely revokes a § 1022 Election, unless he or she timely files Form 706 or 706-NA and attaches Schedule R or R-1.
- Recipients of property from a decedent who died in 2010 may receive income tax penalty relief where such recipient also disposed of the property in 2010 but did not know whether the decedent’s executor or administrator would make a § 1022 Election, affecting the property’s basis, tax character or holding period, when filing his or her own income tax return and computing the income tax liability.
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[1] Consistent with §§ 301(d)(1) and (d)(2) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (TRA), which extended the due date for filing an estate tax return, paying estate tax, making qualified disclaimers and allocating GST to no sooner than nine months from the date of the TRA’s enactment, the Instructions to Form 706 and the Instructions to Form 706-NA set September 19, 2011 as such due date with respect to the estates of decedents dying between January 1, 2010 and December 16, 2010. Click here for more information.
[2] IRS Notice 2011-66 set the November 15, 2011 due date. Click here for more information.
[2] IRS Notice 2011-66 set the November 15, 2011 due date. Click here for more information.