Rev. Proc. 2011-48

The IRS recently issued guidance in Rev. Proc. 2011-48 that provides details on preparing, filing, and documenting protective claims upon an estate.

Code Section 2053 identifies funeral expenses, unpaid mortgages on the decedent’s property, administration expenses ,and other claims against the estate as types of expenses that may be deducted from the decedent’s gross estate for tax purposes. The estate’s fiduciary may file a 2053 protective claim for claims and expense that are not known at the time of filing Form 706 or for claims that are unresolved within the general limitation period allowed for filingclaims for refunds of overpaid taxes.

Fiduciaries may file a Section 2053 protective claim using Form 843 with “Protective Claim for Refund under Section 2053” written across the top for estates of decedents who died on or between October 20, 2009 and December 31, 2011. For estates of decedents who die on or after January 1, 2012, fiduciaries may file a protective claim either using Form 843 or by attaching one or more Schedules PC to Form 706.

For more information on Rev. Proc. 2011-48, see Estate Tax Protective Claim Procedures Detailed, Journal of Accountancy, Oct. 14, 2011.

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