Estate Tax Automatic Extension.Proposed amendments to Regs. Sec. 20.6081-1 (NPRM (Notice of Proposed Rule Making) An announcement by an agency of the U.S. government that proposes a change in regulations. It is followed up by a final ruling. REG-106511-00, 10/20/00) would allow an executor executor n. the person appointed to administer the estate of a person who has died leaving a will which nominates that person. Unless there is a valid objection, the judge will appoint the person named in the will to be executor. an automatic six-month extension of time to file Form 706, United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Estate (and Generation-Skipping Transfer) Tax Return, beyond the nine months after the date of death now provided in Sec. 6075(a). Currently, an IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. district director or service center has the discretion to grant an extension to file an estate tax return on a showing of "good and sufficient cause" for up to six months for executors who are not abroad. To provide certainty to executors, the IRS and Treasury believe it is appropriate to amend Regs. Sec. 20.6081-1 to provide an automatic six-month extension of time to file Form 706. Under the proposed regulations, executors may request an automatic six-month extension by submitting Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes. An automatic extension will be permitted if the application (1) is filed on or before the due date prescribed in Sec. 6075(a); (2) is filed with the IRS office designated in the application's instructions (excepting hand-carried documents); and (3) includes an estimate of estate and/or generation skipping generation skipping adj., adv. referring to gifts made through trusts by a grandparent to a grandchild, skipping one's child (the grandchild's parent). Originally intended to avoid or defer federal gift or estate taxes if paid through a "generation skipping trust," transfer tax liability for the estate. The proposed regulations would continue to permit executors abroad to request extensions beyond the automatic six-month period. The proposed regulations also revise Regs. Sec. 20.6075-1 to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the changes proposed in Regs. Sec. 20.6081-1. The portion of the proposed regulations pertaining to the automatic six-month filing extension would apply to estate tax returns due after the date final regulations are published in the Federal Register. A public hearing has been scheduled for Jan. 24, 2001; interested parties have until Jan. 19, 2001, to submit comments and until Jan. 3, 2001, to submit hearing topic outlines. Submissions should be sent to: CC:M&SP:RU (KEG-106511-00) Room 5226 IRS P.O. Box 7604 Ben Franklin Station Washington, DC 20044 Comments may also be submitted electronically via the IRS Website at http://www.irs.gov. Select the "Tax Regs in English" section, followed by "Tax Regulations." Lesli S. Laffie, J.D., LL.M LL.M Legum Magister (Master of Laws) . |
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