Posted on September 14, 2011

by: Raymond Sheffield

Two weeks ago I wrote about the unique rules for decedents dying in 2010.

On Tuesday, the IRS gave another well needed extension to Fiduciaries who are responsible for filing tax returns for decedents dying in 2010.

As you know, Congress changed the tax code on December 17, 2010, creating confusion and complications for both the IRS and the estate tax attorney’s, CPA’s, and Enrolled Agents who work with Fiduciaries needing to be in compliance with the new law.

Here are the new deadlines you need to know.

Form 8939, the form to allocate Carry-Over Basis, for decedent’s electing out of the $5,000,000 exemption, will now be due on January 17, 2012. This is a change from a couple of weeks ago where they announced a November 15, 2011 filing deadline. No statement or filing is required for this change. The IRS, however, is saying that extensions will only be given.

For the 706 estate tax return, if you file a timely 4768 request for extension, you will have until March 15, 2012 before the return needs to be filed. Interest will be charged, however, for failure to pay any tax owed on time.

Details are in Notice 2011–76.
By the way… There is still a September 19, 2011, deadline to disclaim property.