2003 HTML Instructions for Form 4768,

This is archived information that pertains only to the 2003 Tax Year. If you
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Table of Contents

Due Dates

The due date for Form 706 and Form 706-NA is 9 months after the date of the decedent's death. If there is no numerically corresponding date in the 9th month, the due date is the last date of the 9th month. If the due date falls on a Saturday, Sunday, or a legal holiday, the return is due on the next business day.

Form 706-A is due 6 months after the taxable disposition or cessation of qualified use.

Form 706-D is due 6 months after the taxable disposition, cessation of material participation, or disqualifying act.

Part II, Extension of Time To
File Form 706

Automatic extension. An executor may apply for an automatic 6-month extension of time to file Form 706 by checking the designated box and completing the form as instructed. Keep a copy of the form for your records.

Note:

An extension of time to file does not extend the time to pay.

Additional extension. If you are an executor out of the country, you can apply for an additional extension of time to file. Check the designated box, complete the form as instructed, and attach the statement described in Part II.

You should apply for an automatic 6-month extension and then apply for any additional extension. You may apply for an extension of more than 6 months on the initial Form 4768, but none of the requested extension will be granted under the automatic extension provisions. If you are applying for an extension in excess of 6 months on the initial Form 4768, do not check the box for the automatic extension. You cannot combine an application for an automatic extension and an additional extension on the same Form 4768.

Applications both for an additional extension following an automatic extension and for an initial extension of more than 6 months should be filed early enough to give the IRS time to consider the application and reply before the due date.

Extension for cause. Under regulations section 20.6081-1(c), an executor who failed to timely apply for an automatic 6-month extension of time to file Form 706 may still apply for an extension upon a showing of good and sufficient cause. If you are applying for an extension for cause, check the designated box, complete the form as instructed, and attach the statement described in Part II. Unless the executor is out of the country, the requested extension cannot be for more than 6 months from the original due date of Form 706.

If Form 706 is not required to be filed after extension of time to file has been approved. If an extension of time to file has been approved and it is later determined that the estate is not required to file Form 706, you should notify, by letter, the Service Center that granted the extension that no return is required for the estate. Sending this letter should eliminate any further correspondence with the IRS. Please include with your letter a copy of the approved Form 4768 and the Estate's Probate Inventory and Appraisement.

Part III, Extension of Time To File
Form 706-A, 706-D, 706-NA, or 706-QDT

The requested extension of time to file may not exceed 6 months unless the executor is out of the country.

The application must establish sufficient cause why it is impossible or impractical for the executor to file a reasonably complete return by the return due date.

Note:

An extension of time to file does not extend the time to pay.

Part IV, Extension of Time To Pay (Section 6161)

An extension of time to pay (section 6161(a)(1)) may not exceed 12 months. A discretionary extension of time to pay for reasonable cause (section 6161(a)(2)) may not exceed 10 years. Different extension periods may apply to extensions of time granted for a deficiency, a section 6163 election (reversionary or remainder interest), or a section 6166 election (closely held business).

The application must establish why it is impossible or impractical for the executor to pay the full amount of the estate tax by the estate tax return due date. Examples of reasonable cause provided in section 20.6161-1 of the regulations include the following:

An estate includes sufficient liquid assets to pay the estate (and GST) tax when otherwise due. The liquid assets, however, are located in several jurisdictions and are not immediately subject to the control of the executor. Consequently, such assets cannot readily be collected by the executor even with reasonable effort.
An estate is comprised in substantial part of assets consisting of rights to receive payments in the future (e.g., annuities, copyright royalties, contingent fees, or accounts receivable). These assets provide insufficient present cash with which to pay the estate (and GST) tax when otherwise due and the estate cannot borrow against these assets except upon terms that would cause a loss to the estate.
An estate includes a claim to substantial assets which cannot be collected without litigation. Consequently, the size of the gross estate is unascertainable at the time the tax is otherwise due.
An estate does not have sufficient funds (without borrowing at a rate of interest higher than that generally available) with which to pay the entire estate (and GST) tax when otherwise due, to provide a reasonable allowance during the remaining period of administration of the estate for the decedent's surviving spouse and dependent children, and to satisfy claims against the estate that are due and payable. In addition, the executor has made a reasonable effort to convert assets in the executor's possession (other than an interest in a closely held business to which section 6166 applies) into cash.

In general, an extension of time to pay will be granted only for the amount of the cash shortage. You must show on Part V the amount of the estate (and GST) tax (attach a copy of the return if it has already been filed; otherwise estimate the tax), the amount of the cash shortage, including a statement of the current assets already distributed, a plan for partial payments during the extension period, and the balance due. To avoid penalties and additional interest, you must pay any balance due with this form.

The IRS will complete Part VI and return a copy to the executor. If an approved application has different extension dates in Parts II, III, or IV, the IRS will return two copies to the executor. Attach one of the copies to the estate tax return that is filed. Submit the other copy with the separate payment. The part of the estate tax for which the extension is granted must be paid with interest from the estate tax due date before the expiration of the extension granted.

Note:

An extension of time to pay does not extend the time to file.

Application Denied – Appeal Rights

If your application for extension of time to pay is denied, you may file a written appeal with the IRS. The appeal must:

Be sent to the IRS official whose name appears at the bottom of page 2 of the Form 4768 denying the extension;
Be sent by registered or certified mail, or be hand carried; and
Be filed within 10 days after the denial is mailed to the executor.

The appeal is considered filed on the date it is postmarked. If the due date falls on a Saturday, Sunday, or legal holiday, file by the next business day.

Part V

Interest must be paid on any estate and GST tax that is not paid in full by the original due date of the tax return, regardless of whether an extension of time to file and/or pay has been obtained. For this reason, you should pay as much of the tax as possible by the original (not extended) due date of the return.

Paying the tax. Make the check or money order payable to the “United States Treasury.” Write the decedent's (or qualified heir's) social security number on the payment and the type of return; e.g., “Form 706.”

Specific Instructions