IRS May Allow Late Filing Relief for 706 for Portability

According to Robert Keebler, CPA, the IRS may allow a late filed Federal Estate Tax Return, Form 706, if the only reason for filing the return is for the surviving spouse to claim the deceased spouse’s unused estate tax exemption. The current exemption is $5 million, but it is scheduled to reduce to $1 million in 2013.

Form 706 is due nine months after death, with an automatic six month extension available.