Form 706 extension for portability changes from two to five years from date of death

  • July 15, 2022
  • ShindelRock

The IRS has provided a simplified method for certain taxpayers to obtain an extension of time to file a return on or before the fifth anniversary of the decedent’s death to make a portability election.

For purposes of federal estate and gift taxes, a portability election allows a Deceased Spousal Unused Exclusion (DSUE) amount to become available for application to the surviving spouse’s subsequent transfers during life or at death. This simplified method applies to estates that are not normally required to file an estate tax return because the value of the gross estate and adjusted taxable gifts is under the filing threshold in IRC Sec. 6018(a) and is to be used in lieu of the letter ruling process. No user fee is required.

For assistance with a Form 706 or other estate tax questions, please contact a ShindelRock tax professional.