Consider using the installment method of paying estate tax on qualified businesses even if the cash to pay the tax is available. Use the cash which could have been used for paying the estate tax to pay existing debt which is at a higher interest rate. Remember that the delay of estate taxes is a liability and may affect your ability to borrow money for other purposes. Extensions are granted only if reasonable cause for not being able to pay the tax when due can be shown. The information contained in this NebFact is for educational purposes only.
Tax is complicated and the information presented here has necessarily been simplified.
See a tax consultant for specific questions. Kenneth R. Bolen, Director of Cooperative Extension, University of Nebraska, Institute of Agriculture and Natural Resources.