2011 Form 706 and Instructions Released by IRS

The IRS has posted on its website the forms for the U.S. Estate Tax Return (Form 706) and instructions for estates of decedents dying in 2011. The IRS previously released Form 706 and instructions for estates of decedents who died in 2010. We are still waiting for the release of Form 8939 for estates of 2010 decedents to elect out of the estate tax system and into the carryover basis system. Click here for the IRS forms and instructions.

Final 2010 Form 706 and Instructions

After some confusion with initially posting an older version of the instructions, the IRS has posted both the Final Form 706 for decedents dying in 2010, and the Instructions.  The Form 706 is due September 19, 2011 for 2010 decedents who are not electing out of the estate tax regime and into the carryover basis regime, pursuant to the December 2010 Tax Act.  As mentioned in an earlier blog, you may wish to file Form 4768 prior to September 19, 2011 to extend the due date for filing the return for six months, to give yourself more time to determine which regime to file under.  To see the instructions, go to http://www.irs.gov/pub/irs-pdf/i706.pdf.

Form 8939 and 2010 Decedents

Under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the "Act"), the estate of a 2010 decedent can either stay with the estate tax system with a $5 million exemption, 35% tax rate and full stepped up basis to date of death value, or make an election out of the estate tax system and into the carryover basis system by filing a Form 8939. Form 8939 is due November 15, 2011 according to IRS Notice 2011-66, but the Form itself has still not been released. There will be no extensions of the November15, 2011 due date and the election, once made, is irrevocable, according to the Notice. See our  January 2011 newsletter for a more complete discussion of the Act.
　

Form 706 Deadline is Near!

The deadline for filing a U.S. Estate Tax Return (Form 706) for a 2010 decedent is September 19, 2011 under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the "Act"). If you are still unsure whether or not to file a Form 706 or the Form 8939 that is due November 15, 2011 to elect out of the estate tax system and into the carryover basis system, then you probably want to file a Form 4768, application for automatic 6-month extension of time to file. See our January 2011 newsletter for a more complete discussion of the Act.