Extended Time for Estates to File Portability Election

The IRS has recently updated their simplified method for a surviving spouse to obtain an extension of time to make a portability election to apply the decedent’s spousal unused exemption (DSUE) amount for estate and gift tax purposes. The IRS has extended the deadline to elect portability to five years after the decedent’s death.

To be eligible to use the simplified method, the executor must not have been otherwise required to file an estate return and had not filed an estate return within the normal time required for filing. In addition, the decedent had to be a citizen or resident of the United States on the date of death.

The executor makes the portability election by filing on behalf of the estate Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, on or before the fifth anniversary of the decedents date of death. The executor must state at the top of the Form 706 that it is “filed pursuant to Rev. Proc. 2022-32 to elect portability under Sec. 2010(c)(5)(A).”

If you have any questions on this or any other topics, please reach out to a Stanfield + O’Dell tax professional.