Source: http://thehenryfordlegacy.org/?pageID=39&docID=1116
Timestamp: 2020-07-02 14:45:03
Document Index: 569547297

Matched Legal Cases: ['§ 301', '§ 2010', '§301', '§301', '§ 301', '§ 301']

Decedent was survived by Spouse. Based on the gross value of the estate and taking into account any taxable gifts, Decedent’s estate was not required under Sec. 6018(a) to file an estate tax return. When decedent died, there was an unused applicable exclusion amount. A portability election may be made in the timely filing of a properly prepared estate tax return. Decedent’s estate failed to file for a portability election in a timely manner, which would have allowed Spouse to take into account the deceased spouse unused exemption (DSUE) amount. Decedent’s estate requested an extension of time to make a portability election under Reg. 301.9100-3.
The transfer of the taxable estate of a decedent is subject to tax under Sec. 2001(a). Section 2010(a) provides for an applicable credit amount for every decedent. Section 2010(c) allows spousal portability of a decedent’s unused applicable exclusion amount. Under Sec. 2010(c)(5)(A), the DSUE may not be taken into account unless the deceased spouse’s estate files an estate tax return making the election. The due date for the filing of the estate tax is set at nine months after the decedent’s date of death under Reg. 20.2010-2(a)(1). The estate may, however, file for an extension of time under Reg. 301.9100-3 to make a portability election if the estate was not required under Sec. 6018(a) to file an estate tax return. Regulation 301.9100-1(c) gives the Commissioner discretion to grant a reasonable extension of time. The Commissioner will grant relief under Reg. 301.9100-3 if it is established that the taxpayer acted reasonably and in good faith and that granting the relief will not prejudice the interests of the government. Here, Decedent’s estate provided satisfactory representations regarding its reasons for failing to submit a timely election. Therefore, the Service granted an extension of 120 days for Decedent’s estate to make the portability election.
PLR 202018002 DSUE Portability Election Extension Granted
5/1/2020 (11/25/2019)
This letter responds to a letter dated June 7, 2019, and subsequent correspondence, submitted on behalf of Decedent's estate, requesting an extension of time pursuant to § 301.9100-3 of the Procedure and Administration Regulations to make an election. Decedent's estate is requesting to make an election under § 2010(c)(5)(A) of the Internal Revenue Code (a “portability” election) to allow a decedent's surviving spouse to take into account that decedent's deceased spousal unused exclusion (DSUE) amount.
Section 301.9100-3 provides the standards the Commissioner will use to determine whether to grant an extension of time to make an election whose due date is prescribed by a regulation (and not expressly provided by statute). Requests for relief under §301.9100-3 will be granted when the taxpayer provides evidence to establish to the satisfaction of the Commissioner that the taxpayer acted reasonably and in good faith, and that granting relief will not prejudice the interests of the government.
In this case, based on the representation as to the value of the gross estate and any adjusted taxable gifts, the time for filing the portability election is fixed by the regulations. Therefore, the Commissioner has discretionary authority under §301.9100-3 to grant an extension of time for Decedent's estate to elect portability, provided Decedent's estate establishes it acted reasonably and in good faith, the requirements of §§ 301.9100-1 and 301.9100-3 are satisfied, and granting relief will not prejudice the interests of the government.
Information, affidavits, and representations submitted on behalf of Decedent's estate explain the circumstances that resulted in the failure to timely file a valid election. Based solely on the information submitted and the representations made, we conclude that the requirements of §§ 301.9100-1 and 301.9100-3 have been satisfied. Therefore, we grant an extension of time of 120 days from the date of this letter in which to make the portability election. The election should be made by filing a complete and properly prepared Form 706 and a copy of this letter, within 120 days from the date of this letter, with the Kansas City Service Center, at the following address: Department of Treasury, Internal Revenue Service, Kansas City, MO 64999. For purposes of electing portability, a Form 706 filed by Decedent's estate within 120 days from the date of this letter will be considered to be timely filed.