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Form 8939 May Eventually Be Due for Estates of Some 2010 Decedents, But the IRS Still Has Not Finalized the Form, Instructions or Due Date

March 13, 2011

Form 8939 for  estates and trusts of decedents who died during 2010 still hasn’t been finalized by the Internal Revenue Service.  The last draft Form 8939 posted by the IRS was dated 12/16/2010.

It’s a good thing that the default provision for the estates of decedents  who died during 2010 is the 2011 federal estate tax law, with its $5,000,000 exemption and automatic step-up in basis for assets includible  in the federal gross estate.  Many estates under $5,000,000 will probably not want to elect to be treated under 2010 law and deal with the uncertainties of what assets are entitled to a step-up in basis, so the unavailability of Form 8939 won’t matter to them.  Unfortunately, estates that want to opt out of 2011 law and elect 2010 law still don’t have access to the form or instructions, or even an estimate from the IRS of when they will be completed.

It was once thought that Form 8939 would be due at the same time as the decedent’s 2010 federal income tax return.  The IRS has recently announced, however, that Form 8939 should not be filed with the decedent’s  final income tax return.  Filers of Form 8939 will be given at least 90 days after the form is eventually finalized to file it, and will have access to information about the form and Internal Revenue Code Section 1022 through future Publication 4895, entitled “Tax Treatment of Property Acquired from a Decedent Dying 2010.”

2 Comments leave one →
  1. Peter Yikes permalink
    July 15, 2011 10:24 am

    Any update on when the IRS will finalize this form or how to opt out of the estate tax

  2. Michael permalink
    August 8, 2011 4:39 am

    What is your position on whether non resident aliens who died during 2010 are subject to estate tax?

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