Don’t Fail to File Estate Tax Forms!

The American Institute of CPAs (AICPA) has suggested the IRS extend the due dates for filing the estate tax form for 2010 and 2011. They have also requested a new form (Form 8939) for allocating the increase in basis for property acquired from a decedent.

The AICPA recommended that for all decedents who died in 2010, (when the estate tax was not in effect), the due dates for Forms 706 and 8939 should be 90 days after 8939 is issued in final form along with instructions. It was also suggested the due date for paying the estate tax should be the same as the date for filing Form 706 with the extension.

The IRS recently issued guidance to help taxpayers cope with the carryover basis rules for the estates of people who died last year and help executors who are making the choice to opt out of the estate tax and have the carryover basis rules apply. Form 8939, the basis allocation form required to be filed by executors opting out of the estate tax and electing to be governed by the repealed carry-over basis provisions, is due November 15, 2011. The IRS expects to issue Form 8939 and the related instructions early this Fall.

Timothy Devlin, CPA, Partner-in-Charge of Tax Services remarked: "What is needed is a procedure by which an estate can obtain a six month extension to file Form 8939."

It is important to note that although IRS Form 706 (U.S. Estate Tax Return) is still in the process of being updated, the filing due date has not changed. This means that for estates of decedents who died between January 1, 2010 and December 16, 2010, the estate tax return is still due on September 19, 2011. For estates with decedents who died between December 17, 2010 and December 31, 2010, the estate tax return filing is due nine months after the date of death.

Contact Us

It is important to understand the filing requirements and tax responsibilities you have as estate executor. If you have questions regarding the timing of or how the new filing requirements affect you, then CONTACT US NOW! For questions on these or any Estate and Trust issues, please contact Timothy Devlin, CPA at 561-367-1040, or click here to email Tim. He can assess your situation and ensure you are in compliance, as well as assist you with any necessary filings.

For further information please see our prior article regarding estate tax filings, September Filing Deadline - Choices for 2010 Estate Executors.