Estate Tax Automatic Extension.

• Author: Laffie, Lesli S.

Proposed amendments to Regs. Sec. 20.6081-1 (NPRM REG-106511-00, 10/20/00) would allow an executor an automatic six-month extension of time to file Form 706, United States 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 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 transfer tax...