Form 706

The Tax Advisor recently published an article entitled Estate Tax Form, Instructions Finalized for 2010; Due September 19. A list of the information available in that article is below:

• Form 706 and estate and/or GST tax are due on September 19, 2011 from executors of estates of decedents who died between January 1, 2010 and December 16, 2010.
• Form 706 and estate tax/or GST tax are due within nine months after the decedent’s death from Executors of estates of decedents who died between December 17, 2010 and December 31, 2010.
• Executors can file Form 4768 to request an extension of time to file and pay taxes due (the form contains separate sections for requests for extensions of time to pay and requests for extensions of time to file).
• The six-month extension to file is automatic, but the extension of time to pay is not. The executor must state a reason why the estate requires the extension of time to pay and show reasonable cause.
• Executors of estates of decedents who died in 2010 can choose to pay estate taxes under the current tax law or to apply the Code as though the estate tax had not been reinstated under the 2010 Tax Relief Act.
• Executors choosing to opt out of the current estate tax law should not filed Form 706, but must make the election on Form 8939 which is due on November 15, 2011. (The final version of Form 8939 has not yet been released).
• Executors of estates of any U.S. citizen or resident who died in 2010 with a gross estate, plus adjusted taxable gifts and specific exemption, exceeding $5 million must file Form 706 unless the executor makes the election under Sec. 1022. The Sec. 1022 carryover basis is irrevocable once made, except as provided in Notice 2011-66.
• Executors are to file all forms with the IRS Service Center in Cincinnati

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.