IRS Extends Portability Deadline

November 2017

Law & Stein LLP wants to remind our clients, friends, and families that on June 26, 2017, the IRS issued Internal Revenue Bulletin 2017-26, which essentially extended the deadline to file certain estate tax returns to January 2, 2018. This is an interesting opportunity, which in some cases, could help save some estate tax.

Specifically, the bulletin extends the filing date to January 2, 2018 for estate tax returns involving “portability.” Portability is procedure whereby a surviving spouse can “take over” any unused estate tax credits from a deceased spouse. This can often lead to major tax savings for any family having more than $5 million in assets.

We have found that many people were confused about portability, and weren’t sure (when someone passed away) whether a return needed to be filed or whether an election was needed. Now, in the case of any family where a spouse passed away after December 31, 2010, the estate tax deadline has been extended to early next year.

For any situation where a loved one (spouse) passed away after 2010, and if a “portability” estate tax return was not filed (or you are simply not certain if one was filed), tax savings could apply by taking advantage of this new extended deadline. Please feel free to contact us at no charge to discuss. We would be happy to review your situation with you to determine whether filing such a return now (i.e., before January 2) would be helpful to you.

If you have any questions or would simply like to discuss this further, please give us a call to discuss your specific situation.

Law & Stein LLP
Tel: (949) 501-4800
2601 Main St., Suite 1200
Irvine, CA 92614