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August 12, 2011: AICPA Provides Feedback on the Form 990 & Related Issues - Emil Estafanous, CPA : Emil Estafanous, CPA

August 12, 2011: AICPA Provides Feedback on a Form 990 & Related Issues

The 2010 Form 706, U.S. Estate (and Generation-Skipping Transfer) Tax Return (for decedents failing in 2010), draft form (as of 6/16/11) and draft instructions (as of 8/1/11) were posted by a IRS on 8/3/11. The Form 706 and instructions are still in breeze form usually and are not posted nonetheless in a central forms area of a IRS website.

Since a breeze instructions do not give a sweeping prolongation of a time to record due to a late recover of a form, a AICPA submitted a minute requesting such sweeping extension, along with a procession to record an prolongation to record a Form 8939. The instructions state on page 2 underneath “When to File” that a due date for estates of decedents who died before Dec 17, 2010, is Sep 19, 2011, though afterwards supplement that an prolongation of 6 months can be performed by filing Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes.

Also, other than a anxiety in a “What’s New” territory of a breeze instructions, there does not seem to be anywhere on a breeze Form 706 or instructions referencing a Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, or how to make a choosing to request a carryover basement rules.

As we competence recall, IR-2011-33, expelled Mar 31, 2011, settled that Form 8939 (Draft Form 8939 accessible as of 12/16/10) is not due on Apr 18, 2011 (when a decedent’s final Form 1040 is due), and should not be filed with a final Form 1040 of persons who died in 2010. New superintendence that announces a Form 8939 due date will be expelled along with IRS Publication 4892, Tax Treatment of Property Acquired From a Decedent Dying in 2010, shortly after superintendence is issued. IRS settled in information on a IRS website that if additional taxation is due since an guess filed by Apr 18, 2011 with a final Form 1040 or prolongation turns out to be incorrect, chastisement service will be accessible if a guess was formed on a reasonable interpretation of a law. Interest, however, will accrue.

We note and have already communicated to a IRS a obligatory need for clarifying information per stating 2010 deaths.

IRS posted additional new IRS information on estate taxes that competence be useful as well.

See a associated e-alert on a 8/5/11 IRS recover of superintendence on Form 8939 and electing carryover basement for 2010 deaths.

About Emil Estafanous, CPA
Certified Public Accountant (CPA) Tax Professional committed in representing taxpayers and resolving their tax problems.

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