Media


08/08/12


IRS Grants 9100 Relief Allowing Late Opt-Out of Estate Tax for 2010 Decedent

Related Attorney(s): David S. De JongEric J. RollingerDavid B. Torchinsky

Media Type: Alert

On June 13, 2012, the Internal Revenue Service issued a Letter Ruling on behalf of a Stein Sperling client, number yet to be assigned, granting a retroactive extension of time pursuant to §301.9100-3 for an estate to file Form 8939 thereby making a Section 1022 election opting out of the Federal Estate Tax on Form 706 for tax year 2010. This is the first known case of the IRS allowing an estate of a 2010 decedent to opt out of the Federal Estate Tax after the January 17, 2012 deadline.

If you are assisting a large 2010 estate with over $5 million in net assets and have never considered the idea of attempting a late opt-out because of prior IRS guidance, or if you previously attempted to file a late Form 8939 and it was rejected, you may wish to submit a Letter Ruling requesting 9100 relief.

This procedure is not for every large estate of a 2010 decedent. Most particularly, those estates with less than $5 million in assets or those estates with a high basis in the assets being transferred will receive little or no benefit from opting out of the federal estate tax. Requesting 9100 relief via a Letter Ruling requires the submission of a processing fee and there is no guarantee that relief will be granted.

If you would like to meet with one of our tax attorneys to determine if a Letter Ruling is advisable for you or if you need assistance with any federal or state tax matter, please call 301-340-2020.


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