Source: http://plannedgiving.macalester.edu/?pageID=39&docID=991
Timestamp: 2018-06-19 08:14:20
Document Index: 409687710

Matched Legal Cases: ['§ 301', '§ 2010', '§ 2010', '§ 301', '§ 2010', '§ 6018', '§ 301']

On Date 1, Decedent passed away and was survived by Spouse. In order for Spouse to elect to use Decedent's deceased spousal unused exclusion (DSUE) amount, Decedent's estate was required to file Form 706 within nine months of Decedent's death or on the last day of any extension granted. Form 706 was due on Date 2. Decedent's estate failed to file Form 706 prior to the due date. Decedent's estate discovered that it missed the due date after the date had passed. Decedent's estate represented that the value of Decedent's gross estate was less than the basic exclusion amount in the year of Decedent's death, including any taxable gifts made during Decedent's lifetime. The estate of Decedent requested an extension of time to make the DSUE portability election.
Where the decedent's gross estate exceeds the basic exclusion amount in effect for the calendar year of the decedent's death, Sec. 6018(a) requires the filing of an estate tax return. Regulation 20.2010-2T(a) requires timely filing of Form 706 if a surviving spouse wishes to elect portability of the DSUE amount. Under Reg. 20.2010-2T(a)(1), the due date for such an election is nine months after the death of the decedent or the last day of any extension that was granted. Where the due date is established by regulation, the Commissioner has discretion, under Sec. 301.9100-3, to grant the decedent's estate an extension of time to elect portability. Section 301.9100-3 provides that such an extension may be granted if the Commissioner finds that the taxpayer acted reasonably and in good faith and that granting relief will not prejudice the interests of the government. Here, the Commissioner found that the requirements of Sec. 301.9100-3 were satisfied. Therefore, Decedent's estate was granted an extension of 120 days to make the DSUE portability election by filing Form 706.
PLR 201737004 Extension Granted to Make Portability Election
9/15/2017 (6/5/2017)
This letter responds to your personal representative's letter of November 28, 2016 requesting an extension of time pursuant to § 301.9100-3 of the Procedure and Administration Regulations to make the election under § 2010(c)(5)(A) of the Internal Revenue Code (portability election) to allow a decedent's surviving spouse to take into account that decedent's "deceased spousal unused exclusion" (DSUE) amount.
The facts and representations are as follows.
Decedent died on Date 1, survived by Spouse. Date 1 is a date after the effective date of the amendment to § 2010(c), which provides for portability of a DSUE amount to a surviving spouse. To obtain the benefit of portability of Decedent's DSUE amount to Spouse, Decedent's estate was required to file Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, on or before the date that is nine months after Decedent's date of death or the last day of the period covered by an extension. Decedent's Form 706 was due on Date 2, but the estate did not file a Form 706 to make the portability election. The estate discovered its failure to elect portability after the due date for making the election.
It is represented that the value of Decedent's gross estate is less than the basic exclusion amount in the year of Decedent's death including any taxable gifts made during his lifetime.
You request an extension of time pursuant to § 301.9100-3 to elect portability of Decedent's DSUE amount pursuant to § 2010(c)(5)(A).
It is represented that, based on the value of the gross estate and taking into account any taxable gifts, Decedent's estate is not required to file an estate tax return under § 6018(a). Under these facts, the Commissioner has discretionary authority under § 301.9100-3 to grant to Decedent's estate an extension of time to elect portability.
Copy for section 6110 purposes