Election to Opt Out of Estate Taxes due November 15 (No Form Yet)


As a result of the last minute tax deal last year extending tax breaks, which we wrote about here, executors of estates of decedents passing away in 2010 have the choice of electing to have the estate subject to estate tax, or forego the basis adjustment.  The IRS has established that executors who are making the election to opt out of estate tax and have the carryover basis rules apply for 2010 decedents must file Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent, on or before November 15, 2011. (IR 2011-83)

Further information on filing Form 8939 is contained in IRS Notice 2011-66 and Revenue Procedure 2011-41.

Although the IRS established a due date for the 8939, the form itself has not been released. The IRS states that the form will be released early this fall. Unfortunately, Form 706 has not yet been released either, and there is no mention of an extension of the September 19, 2011, due date.

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