2010 Estate Filing Extensions

Large estates of people who died in 2010 and opting out of the estate tax will have until Tuesday, January 17, 2012 to file Form 8939. This special carryover basis form, required of estates making this choice, was previously due on November 15, 2011.

2010 estates that request an extension on Form 4768 will have until Monday, March 19, 2012 to file Form 706 or Form 706-NA and pay any estate tax due. Normally, a six-month filing extension is automatically granted to estates filing this form, but extensions of time to pay are granted only for good cause. For estates of those dying late in 2010 (after December 16, 2010 and before January 1, 2011), the due date is 15 months after the date of death. No late-filing or late-payment penalties will be due, though interest still will be charged on any estate tax paid after the original due date.

This relief is designed to give large estates, normally those over $5 million, more time to comply with key tax law changes enacted late last year.

Special penalty relief is provided to many individuals, estates and trusts that already filed a 2010 federal income tax return, or obtained an extension and plan to file by the October 17, 2011 extended due date. Late-payment and negligence penalty relief applies to persons inheriting property from a decedent dying in 2010, who then sells the property in 2010 but improperly reports gain or loss because they did not know whether the estate made the carryover basis election.

Please contact Myra Roberts or Donny Donald with the BMSS Estate Planning practice group to discuss your specific needs.

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