The executrix filed an estate tax return on the decedent’s farmland in timely manner after the completion of a will contest, but the executrix did not make the appropriate Section 2032A election. The election would allow her to value the decedent’s famland based upon its agricultural use. Otherwise the value of the farmland would be calculated based upon the “highest and best” use. The executrix filed the estate tax return after she discussed special use valuation with both her lawyer and accountant. The executrix sought to extend the time for filing the election. However, the executrix only sought the automatic extension after the examination of the original return had started. The executrix did this based upon the advice on her accountant.
In PLR 201224019, the I.R.S. used its discretion and allowed the executrix to take the election for special use valuation under Section 2032A because the executrix had reasonably relied on a qualified tax professional, such as an accountant. The I.R.S. highlighted the fact at that the executrix intended to take the 12-month automatic extension as crucial to their decision to allow her to take the election.
See PLR 201224019 – Late Special Use Valuation Election, Charitable Planning, June 18, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
