In order for a taxpayer to obtain an extension of time to pay estate taxes, they must request to do so under one of three IRS Code Sections.
It is important to apply for an extension with the IRS as soon as possible. If you postpone the ability to file for an extension, you will add more penalties that could have been avoided. The IRS will also begin collection efforts against the estate if you are not careful.
The three Code Sections include:
1. IRC Sec. 6161 (relating to discretionary extensions of time to pay tax)
2. IRC Sec. 6163 (relating to the value of reversionary or remainder interests)
3. IRC Sec. 6166 (relating to an interest in a closely held business)
Understand that if the IRS grants an extension under one of these Code Sections, the statute of limitations on collection is suspended for a corresponding length of time.
About Paul Gaulkin CPA
Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.