Timeline for Filing Estate Tax Portability -9 Months After Decedent’s Death

The IRS is requiring executors to make theelection on estate tax returns within the laws time requirement to have a portabilityelection. A valid portability election requires that even extensions beincluded in the time requirement. According to the IRS code estate tax returnsmust be filed within nine months of the decedent’s death. Further, the codedoes not require anyone with a gross estate smaller than $5.25 million to fileestate tax returns.

The complication arises because there isno one provision in the code that provides a time requirement for filing estatetax return on behalf of a decedent’s estate when it exceeds the exclusionamount ($5.25 million ) for estates choosing the portability election. 

Now there is a temporary portability regulationthat requires every estate electing portability to file within 9 months of thedecedent’s death. Extensions are available. Additionally, this rule appliesregardless of the gross estate amount. Estates choosing to elect portabilitymust file an estate tax return.  

See Lewis Saret, Estate Tax Portability – What Is A Timely Filed Estate Tax Return?, Forbes, Aug. 7, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.