2022 – 07/12 The IRS has updated the procedure for obtaining an extension to elect “portability.” Making a portability election allows a surviving spouse to apply a deceased spouse’s unused federal gift and estate tax exemption amount toward his or her own transfers during life or at death. To secure these benefits, however, the deceased spouse’s executor must have made a portability election on a timely filed estate tax return (Form 706). Unfortunately, estates that aren’t otherwise required to file a return often miss the deadline. The IRS now provides eligible estates an extension of five years (up from three years) from the date of death to request a portability extension. (Revenue Procedure 2022-32)
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