Warning: Use of undefined constant wp_cumulus_widget - assumed 'wp_cumulus_widget' (this will throw an Error in a future version of PHP) in /home/www/cpa-la.com/wp-content/plugins/wp-cumulus/wp-cumulus.php on line 375
Estate Tax Protective Claim Procedures Detailed - Emil Estafanous, CPA : Emil Estafanous, CPA

Estate Tax Protective Claim Procedures Detailed

The IRS released superintendence Oct 14 on filing a protecting explain for reinstate of estate taxation and notifying a IRS that a explain is prepared for consideration.

The guidance, in Rev. Proc. 2011-48, provides sum on who might record a protecting claim, methods by that a explain strait be prepared and submitted, and identifying and documenting superb claims on an estate and other deductible losses for that a protecting explain is filed.

Sec. 2053 identifies forms of losses that might be deducted from a value of decedents’ sum estates for last a taxable volume of a estate. These losses embody wake expenses, administration expenses, delinquent mortgages on a decedent’s property, and other claims opposite a estate. In some cases, such claims and losses might not be famous during a time of filing Form 706, U.S. Estate (and Generation-Skipping Transfer) Tax Return, or resolved within a ubiquitous reduction duration authorised for filing a explain for reinstate of taxation overpaid (three years from a filing date or dual years from a date taxes are paid, whichever is later—Sec. 6511(a)). In such cases, estate curators might record a protecting explain for reinstate within a ubiquitous reduction duration to safety a estate’s right to explain a reinstate over that period.

Regulations underneath Sec. 2053 finalized in 2009 yield that a protecting explain strait brand a explain or responsibility and because a remuneration has been delayed. Once remuneration is made, a estate’s fiduciary strait within a reasonable duration forewarn a IRS, that will afterwards routine a explain and emanate a refund.

Method of Filing

For estates of decedents failing on or between Oct 20, 2009, (the income procedure’s effective date) and Dec 31, 2011, curators might record a Sec. 2053 protecting explain regulating Form 843, Claim for Refund and Request for Abatement, with “Protective Claim for Refund underneath Section 2053” created opposite a top, to a IRS residence given in a income procedure.

For estates of decedents failing on or after Jan 1, 2012, a protecting explain might be filed possibly regulating Form 843 as described above or by attaching to Form 706 one or some-more Schedules PC, that a IRS expects to initial make accessible as partial of a 2012 chronicle of Form 706. A apart Schedule PC strait be filed for any explain or expense.

Who May File?

Generally, a explain is filed by an estate fiduciary or other chairman approved to act on interest of a estate, who strait request that standing by including approved copies of letters testamentary, letters of administration or other such justification with a protecting explain for refund. However, this support generally is also compulsory for Form 706, and if a same fiduciary or other chairman submits a Sec. 2053 protecting claim, a created matter affirming that fact and a person’s stability management to act in that ability will be deemed sufficient.

Notifying a IRS

The fiduciary or other approved chairman strait forewarn a IRS that a explain for reinstate is prepared for care within 90 days after a explain or responsibility is paid or a volume becomes certain and no longer theme to any contingency, whichever is later. A late presentation should embody an reason sufficient for a IRS to establish either reasonable means exists for a delay.

For estates of decedents failing on or after Jan 1, 2012, a fiduciary or approved chairman can forewarn a IRS regulating an updated Form 843 or a supplemental (updated) Form 706, with a footnote and attachments as described in a income procedure. For estates of decedents failing on or between Oct 20, 2009, and Dec 31, 2011, a presentation strait be done around an updated Form 843.

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

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

Our clients are located throughout Southern California in cities such as Los Angeles, CPA: Whittier, Santa Fe Springs Accounting, Artesia, Cerritos CPA, Bellflower: Tax Preparation, Payroll: Downey, La Palma, Accountant: La Mirada, IRS Representation: Lakewood , Gardena, La Habra, Brea, Rancho Dominguez, Hacienda Heights, Torrance, Diamond Bar, South Bay, Pomona, Carson, Buena Park, La Puente, Orange, Anaheim, Fullerton, Seal Beach, Costa Mesa, Irvine, Garden Grove, Huntington Beach, Santa Ana, Hawthorne, Santa Monica, Montebello, Pico Rivera, Newport Beach, Hollywood, and many more.