On Friday, July 8, the Internal Revenue Service (IRS) issued Revenue Procedure 2022-32, which now allows estates up to five years after the death of a decedent to file Form 706 and elect portability of a deceased spousal unused exclusion (DSUE). The extension to file is only allowed in instances that Form 706 was not required due to the value of the estate, and must be done solely for portability. The estate of a decedent who passed after Dec. 31, 2010 and is survived by a spouse may do so in order to pass on the decedent’s spouse DSUE, which may be added to the surviving spouse’s basic exclusion amount under Section 2010(c)(2)(B).
The IRS has also updated the simplified method for obtaining an extension found in Revenue Procedure 2017-34, hoping that by extending the period of time within an estate of a decedent may make the portability election, the IRS will consequently reduce an influx of letter ruling requests for those who have missed an estate filing deadline.
For more information, please reach out to your Windham Brannon advisor, or contact Doug Neal or Barbara Coats.
