IRS 706 ESTATE TAX RETURN FAQ's
Q. As Executor of my mother's estate do I need to file a federal estate tax return?
A. It depends. If your mother's gross estate is more than the Estate Tax Exemption in the year of death (See chart to your left) then you, as Executor, are required to file an IRS Form 706 Estate Tax Return. See IRS Code Section 6018.
Q. What if I do not file an Estate Tax Return?
A. The Executor is personally liable the for payment of all of the estate tax, penalties and interest for failure to file a required Estate Tax Return. IRS Code Section 2002.
Q. What is "Portability"?
A. Portability allows the Surviving Spouse to take advantage of the Deceased Spouse's Unused Estate Tax Exemption. (DSUE) However, in order to claim Portability the Executor must timely file an Estate Tax Return to elect Portability.
Q. Does the IRS Audit Estate Tax Returns?
A. Yes. Every IRS Estate Tax Return is reviewed. Believe it or not an IRS Revenue Agent can review an Estate Tax Return in 3 - 5 minutes to determine whether or not the return should be audited.
Q. When is my IRS 706 Estate Tax Return due?
A. Your Estate Tax Return is due nine (9) months from the date of the decedent's death. Executors and Trustee can file a six (6) month extension to extend the time to file the Estate Tax Return.
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