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Page 3 of 4 Fileid: Instructions/I4768/201208/C/XML/Cycle02/source 10:47 - 29-Aug-2012
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
2. It is impossible or impractical to file Form 706 by the allowance during the remaining period of administration of
due date, and the estate for the decedent's surviving spouse and
3. You should be granted an extension at this time. dependent children, and to satisfy claims against the
estate that are due and payable. In addition, the executor
Unless the executor is out of the country, the requested has made a reasonable effort to convert assets in the
extension cannot be for more than 6 months from the executor's possession (other than an interest in a
original due date of the Form 706. closely-held business to which section 6166 applies) into
cash.
Note. We will contact you only if your request for
extension of time to file is denied. Keep a copy of the form In general, an extension of time to pay will be granted
for your records. only for the amount of the cash shortage. You must show
on Part IV, line 1 the amount of the estate and GST taxes
If a form on extension is not required to be filed after
due (attach a copy of the return if it has already been filed;
an extension of time to file has been granted. If you
otherwise estimate the tax). On Part IV, line 2, indicate the
have been granted an automatic extension, additional
amount of the cash shortage, including a statement of the
extension, or extension for cause, and it is later
current assets already distributed, and if applicable, the
determined that you are not required to file the form
plan for partial payments during the extension period. On
extended (that is, Forms 706, 706-A, 706-D, 706-NA, or
Part IV, line 3, show the balance due.
706-QDT), write a letter to the Internal Revenue Service
Center listed under Where To File , stating that no return To assist us in processing the return, read the bulleted
is required for the estate. Sending this letter should items, check the appropriate box, and enter the extension
eliminate the need for any further correspondence with date you are requesting as indicated.
the IRS. Please include with your letter a copy of the
See Part V. Notice to Applicant, below, for details on
Estate's Probate Inventory and Appraisement.
appeal rights.
Part III. Extension of Time To Pay
Note. An extension of time to pay does not extend the
(Section 6161) time to file.
An extension of time to pay may not exceed 12 months.
An extension of time to pay for reasonable cause may be Part IV. Payment To Accompany
granted, for 1 year at a time, for up to a maximum of 10 Extension Request
years. An extension of time to pay a deficiency for Interest must be paid on any estate and GST taxes that
reasonable cause may be granted, for 1 year at a time, up are not paid in full by the original due date of the tax
to a maximum of 4 years. Different extension periods may return, regardless of whether an extension of time to file
apply to extensions of time granted for a section 6163 and/or pay has been obtained. For this reason, you should
election (reversionary or remainder interest) or a section pay as much of the tax as possible by the original (not
6166 election (closely-held business). extended) due date of the return.
The application must establish why it is impossible or
impractical for the executor to pay the full amount of the Note. A payment submitted with Form 4768 that is
estate tax by the estate tax return due date. Examples of designated as a payment of estimated non-deferrable tax
reasonable cause provided in Regulations section based on the intention to elect to extend the time for
20.6161-1(a) include the following. payment of estate tax under section 6166 will not be
An estate includes sufficient liquid assets to pay the refunded if it exceeds the amount of the non-deferred
estate (and GST) tax when otherwise due. The liquid liability when the section 6166 election is made. Payments
assets, however, are located in several jurisdictions and in excess of the non-deferred portion of tax as well as
are not immediately subject to the control of the executor. excess 6166 installment payment will be applied to the
Consequently, such assets cannot readily be collected by remaining tax liability pursuant to sections 6402 and 6403.
the executor, even with reasonable effort. Paying the tax. Make the check or money order payable
An estate is comprised, in substantial part, of assets to the “United States Treasury.” Write the decedent's (or
consisting of rights to receive payments in the future (for qualified heir's) social security number and the type of
example, annuities, copyright royalties, contingent fees, or return (for example, “Form 706”) on the payment.
accounts receivable). These assets provide insufficient
present cash with which to pay the estate (and GST) tax Part V. Notice to Applicant
when otherwise due and the estate cannot borrow against If you are applying for an extension of time to pay, file
these assets except upon terms that would cause a loss page 2 of Form 4768 in duplicate. The IRS will complete
to the estate. Part V and return one copy to the executor. When
An estate includes a claim to substantial assets which submitting payment, attach a copy of the approved
cannot be collected without litigation. Consequently, the application. The part of the estate tax for which the
size of the gross estate is unascertainable at the time the extension is granted must be paid with interest from the
tax is otherwise due. estate tax due date before the expiration of the extension
An estate does not have sufficient funds (without granted.
borrowing at a rate of interest higher than that generally
available) with which to pay the entire estate (and GST)
tax when otherwise due, to provide a reasonable
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