The industry’s premier estates, gifts, and trusts resource that features research, planning, and implementation tools on one platform — backed by the nation's leading...
By Kathleen Ford Bay
Richards Rodriguez & Skeith LLP, Austin, TX
The representative of an estate filed a federal estate tax return timely, but failed to elect alternate valuation under §2032 of the Code, which allows all assets of an estate to be reported for federal estate tax purposes at their value six months after the date of the decedent's death if the result will be a lower federal estate tax liability. In PLR 201103003 (1/21/11) the representative of an estate sought and was granted an extension of time in which to elect alternate valuation. Before granting the extension, the PLR contains a nice blueprint of when Regs. §301-9100 can be used to request relief: Under §301.9100-1(c), the Commissioner may grant a reasonable extension of time to make a regulatory election, or statutory election (but no more than 6 months except in the case of a taxpayer who is abroad), under all subtitles of the Internal Revenue Code except Subtitles E, G, H, and I, if the taxpayer demonstrates to the satisfaction of the Commissioner that the taxpayer has acted reasonably and in good faith, and granting relief will not prejudice the interests of the government. … Requests for relief under §301.9100-3 will be granted when the taxpayer provides the 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. … Section 301.9100-3(b)(1)(v) provides that a taxpayer is deemed to have acted reasonably and in good faith if the taxpayer reasonably relied on a qualified tax professional, including a tax professional employed by the taxpayer, and the tax professional failed to make, or advise the taxpayer to make, the election.
A request for an extension of time under Regs. §301.9100 regarding an alternate valuation extension must be made within one year of the time the estate tax return was timely filed (including extensions). Without really discussing the facts stated in the ruling – that the first return preparer died, there was a proper extension of time to file made, and then the second return preparer filed the return without electing alternate valuation, the ruling states that the taxpayer met the standards required in order to receive an extension and thus was entitled to a 120-day extension.
For more information, in the Tax Management Portfolios, see Peebles and Janes, 822 T.M., Estate, Gift, and Generation-Skipping Tax Returns and Audits, and in Tax Practice Series, see ¶6290, Valuation—Generally.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)