Posted by : Daniel Stoica in (Articles, Federal Taxes, Tax Filing, Tax Forms, Tax Help, Tax Tips, Tax Topic) On: September 14th, 2011
Tagged Under : 4768 Form, 706 Form, 706-A Form, 8939 Form, accounting professional, beneficiaries, Daniel Stoica, estates, IRS, penalty, relief, tax professional, Tax Return, taxes, trusts
The IRS has stated that large estates of those who passed away in 2010 will have an extension to file their returns and pay estate taxes. The extension is expanded until January, 2012. The IRS is also granting no penalties for some beneficiaries on these estates for their 2010 tax returns.
This relief was granted so that estates worth more than $5 million will have time to adhere to the major tax law changes that were put in place last year. The modified estate tax forms can be downloaded from irs.gov and the carry-over form will be available this fall.
The IRS will give the following relief:
Large estate whose beneficiaries opt out of the estate tax will have until January 17th, 2012 to file the 8939 Form. This carry-over form was originally due on November 15th of this year. The change is specific to the date and not a true extension, there will be no other forms required when filing your return.
For 2010, estates that requested an extension on the 4768 Form will be be given until March of 2011 to file their returns and pay any taxes that are due. A six month extension is usually granted for those who file this form, but if there is a good cause to extend payments, the extension is granted. Most estates for the 2010 tax year that file the 4768 Form will have until March 19th, 2012 to file a 706 or 706-A Form. If someone passed away in late 2010, generally after December 16th, 2010, but before January 1st, 2011, the due date to file is 15 months after the owner of the estate has passed away. There will be no late filing or late payment penalties, but there will still be interest on estate taxes that are paid after they are due.
There is a penalty relief for many beneficiaries of large estates and trusts who have already filed their 2010 tax returns or requested an extension and will file before October 17th, 2011. Late payment and penalty relief will apply to beneficiaries of estate owners who passed away in 2010 and who sold the property in 2010. If they reported incorrect gains or losses due to not knowing that the estate was eligible for the carry-over. Information about this extension and relief can be found in Notice 2011-76 on irs.gov.