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 Steven B. Gorin
Thompson Coburn LLP, St. Louis, MO
In U.S. v. Kulhanek,1 the decedent died in 1991, and the estate tax return was due in 1992. The executor made a §6166 election on the estate tax return to pay estate tax in installments. In 1999, the closely-held business sold all of its assets, making all of the estate tax due upon the IRS' notice and demand.2 The IRS sued the transferees in 2008. The transferees argued that the action was for collection of estate tax and was untimely, because it was brought more than ten years after date of death.3 The U.S. District Court held that the collection action was timely, because it was a transferee liability case,4 not an estate tax collection case, and was brought less than ten years5 after the event that accelerated payment of the estate tax.6
Thus, transferees of estates that have made Code §6166 elections might be liable until as long as 24 years and 9 months after death (ten years after the fourteen year deferral under Code §6166 of taxes due nine months after death).
For more information, in BNA's Tax Management Portfolios, see Gopman and McCawley, 832 T.M., Estate Tax Payments and Liabilities, and in Tax Practice Series, see ¶6180, Introduction — The Estate and Gift Taxation System, ¶6300, Credits, Deferred Tax Payments, and Tax Liabilities, ¶6350, Estate Planning.
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)