We Listen.

Can You Request An Extension To File A Federal Estate Tax Return?

 width=
The Estate Tax Returns in 2011 - Can Your Get An Extension To File A Return?

Can You Get An Extension To File A Federal Estate Tax Return (Form 706)?

In 2010 there is no federal estate tax and the IRS is not currently accepting the form 706.

In case you’re wondering why anyone would file an estate tax return when there is no estate
tax, that’s another story for another time.  But, in just a few more weeks the federal estate tax will come
back with a vengeance.

On January 1, 2011, the IRS will again begin accepting estate tax returns for descendants dying after
that date.  And, they will be taxing your estate (including life insurance) for every dollar over $1 million.
Additionally, the tax rate will return to a top marginal rate of 55%.

Many clients find, that because of the complexities of the estate, or the lack of ability to get accurate
appraisals, or because of a lack of clear record keeping by an aging relative, that hey are not in a position to file the return
within the nine months permitted by law.  The good news is, that there is also a provision for an automatic extension of up to six months.

Note, that this extension is merely to file a return and is not an automatic extension of time to pay the tax.  In addition, a federal court recently
held that the IRS failed to grant an additional extension (when the extension was requested after the due date for the return).  However,
there are a number of important limitations cited in this case.  But, this ruling  in favor of the tax payer might give you a basis for
requesting an extension other than the automatic extension of six months.

In any case, file requests for extension in a timely manner to avoid the litigation costs experienced by the estate in this case.

To review the case and the federal courts ruling on extensions to file a federal estate tax return, click here.

David M Frees focuses his practice in the areas of trusts and estates, and probate.  He also works with many closely held

family businesses in the areas of succession planning and asset protection planning. 610-933-8069

Share on Social Media
  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • Email

Leave a Reply

Sophisticated, Responsive and Focused.

  • “At Unruh Turner Burke & Frees, the client’s objective is never lost in the details and as a result, even complex deals get done quickly and efficiently..."

    Read More...

  • “Unruh Turner Burke & Frees has been a tremendous resource to me and my team throughout the past 17+ years. This highly-talented group delivers the...”

    Read More...

  • “Unruh Turner Burke & Frees has been a trusted source of advice and counsel on all levels of governmental law and regulation, from zoning and land use...”

    Read More...

  • "Our Trust Department has utilized Unruh Turner Burke & Frees’ expertise for several years to assist our clients with their overall estate plans. They..."

    Read More...

  • “Over the last 25 years Unruh Turner Burke & Frees has represented our residential building and development enterprise in many capacities including real..."

    Read More...

  • "Based on my long-term relationship with Unruh Turner Burke & Frees, I can wholeheartedly recommend its services to any business owner who wishes to work with...”

    Read More...

  • “We recently hired Unruh Turner Burke & Frees to handle a conditional use application for our Chestnut Street Lofts apartment project in downtown West Chester..."

    Read More...

  • “I have been working with Unruh Turner Burke & Frees for many years. They have provided legal counsel in the areas of Estate Planning, Land Use, Litigation and...”

    Read More...

  • “I have relied on the firm's legal advice to make critical decisions on handling family wealth and making appropriate decisions for my family's future.”

    Read More...

  • “… This highly-talented group delivers the highest quality legal work and brings real-world experience in a very cost-effective manner…”

    Read More...

  • "If there is an issue facing a municipality, Unruh Turner Burke & Frees is the source for sound guidance and direction.”

    Read More...

  • “…They have provided legal counsel in the areas of Estate Planning, Land Use, Litigation and Real Estate. In every one of those areas I have been blessed with great ...”

    Read More...

  • "Whether we are competing in a strong market or working through a declining market, it has always been reassuring to know that Unruh Turner Burke & Frees has both..."

    Read More...

meet our elite team
West Chester, PA
17 West Gay Street
P.O. BOX 515
West Chester, PA 19380
(610) 692-1371
Phoenixville, PA
120 Gay Street
P.O. Box 289
Phoenixville, PA 19460
(610) 933-8069