Tuesday, April 05, 2011

FORM 8939 AND ELECTION OUT OF ESTATE TAX FOR 2010–CONTINUING EXTENSION

As April 18 approaches, there have been continuing concerns whether the election out of estate tax for those estates that desire to do so for 2010 decedents, and the filing of Form 8939 to report basis adjustments for those decedents, will be required to be filed by that date. This is because previously the Form 8939 reporting was to have been completed and submitted by the due date of the decedent’s 2010 income tax return.

We have previously discussed earlier guidance on when those items will be due here. On March 31, the IRS issued further unambiguous guidance that such items will not be due on April 18.

The due dates (and applicable forms) will be released by the IRS in the future.

IR-2011-33, March 31, 2011

1 comment:

Anonymous said...

This is not entirely correct. Under EGTRRA, a 2010 decedent's estate needed to make the income tax basis election by the due date of the decedent's income tax return - typically April 18, 2011. That does not mean, however, that his is the applicable deadline for making the election to elect out of the estate tax for a 2010 death. All the Dec. 17 Act says is that the election is irrevocable and is "to be made in such time and in such manner as the Secretary...or the Secretary's delegate shall provide." Back in February, IRS said Form 8939 (basis allocation form) won't have to be filed until at least 90 days after Form 8939 is finalized. Whether that is the same form that will be used to elect out of the estate tax remains unknown. If it is not, it is possible that different filing deadlines could apply.