867 / What are the requirements for filing a federal estate tax return and paying the tax?

Except for extensions of time granted under conditions explained in Q 869, a federal estate tax return (Form 706), if required, must be filed, and the tax paid, by the executor within nine months after the decedent’s death.¹ A six month extension for filing is available if requested prior to the due date and the estimated correct amount of tax is paid before the original due date.

The 2010 TRA provided that, for estates of decedents dying after December 31, 2009 and before December 17, 2010, the due date for filing an estate tax return, paying the estate tax, and making a disclaimer of an interest in property passing by reason of the decedent’s death, is not earlier than the date which is nine months after December 17, 2010. However, an estate of a decedent who died in 2010 was permitted to file an election and not be subject to an estate tax, but instead be bound by the modified carryover basis rules under IRC Section 1022. An estate that made such election was required to file a Form 8939.²

The executor cannot escape responsibility for timely filing of an estate tax return or timely payment of the tax by delegating the responsibility to his attorney or accountant. Ignorance of the necessity to file a return or of the due date of the return is generally no excuse; the executor is required to exercise reasonable care in ascertaining these requirements. An exception to the general rule may exist if an attorney or accountant advised the executor no return was required to be filed.³ However, the penalty for late filing⁴ does not apply to an executor who by reason of his age, health, and lack of experience is incapable of meeting the criteria of ordinary business care and prudence required by the regulations.⁵