February 27, 2014. With portability being a new beast, there was some initial but widespread confusion as to how to make the portability election and the time frame to do so. The result of this confusion was that some estates did not make the qualifying election in the time prescribed. As a temporal balm, the IRS recently issued Revenue Procedure 2014-18. This Procedure allows additional time for an estate that could have filed for portability but missed the deadline to do so. There are, though, some qualifications. The decedent for the estate seeking the extension to file must have died after December 31, 2010, but before January 1, 2014. The estate must not have already filed a Form 706, and furthermore, is not required to file one because the gross estate (and adjusted taxable gifts) exceeds the exemption amount. If the estate meets these requirements, an extension to file Form 706 will be granted for the exclusive purpose of making the portability election if the form is filed on or before December 31, 2014. The final and very necessary requirement is that the top of the Form 706 conspicuously state that the return is “FILED PURSUANT TO REV. PROC. 2014-18 TO ELECTOR PORTABILITY UNDER § 2010(c)(5)(A).”
For questions about portability or estate planning, contact the Goosmann Trust Law Counsel at info@goosmannlaw.com, or call 712-226-4000.