On July, 8, 2022, the Internal Revenue Service released Revenue Procedure 2022-32, which provides a simplified method for certain estates to make a late portability election to allow the surviving spouse of the decedent to use the decedent\u2019s unused unified gift and estate tax exemption (also known as the deceased spousal unused exclusion (DSUE)). <\/p>\n\n\n\n
The\u00a0Revenue\u00a0Procedure\u00a0expressly supersedes Rev. Proc. 2017-34, which allowed an estate that wasn\u2019t required to file an estate tax return (due to the value of the gross estate and adjusted taxable gifts being under the filing threshold in Internal Revenue Code Section 6018(a)) to make a late election through the\u00a0second anniversary<\/em>\u00a0of death.\u00a0\u00a0<\/p>\n\n\n\n The IRS stated in Rev. Proc. 2022-32 that, even since it began\noffering the two-year relief period, “the IRS has continued to issue\nnumerous letter rulings” from estates that missed that deadline, placing\n“a significant burden” on IRS resources. A “significant\npercentage” of these requests came before the fifth anniversary of the\ndecedent’s date of death, however. To reduce the number of letter ruling\nrequests, in Rev. Proc. 2022-32, the IRS updates the simplified method in Rev.\nProc. 2017-34 by extending the period within which the estate of a decedent may\nmake the portability election under the simplified method to on or before the\nfifth anniversary of the decedent’s date of death.<\/p>\n\n\n\n New\nRequirements for Portability Election<\/strong><\/p>\n\n\n\n Under the new procedure, the\nexecutor of the decedent\u2019s estate may elect for portability of the DSUE to a\nsurviving spouse if: (1) the decedent died after Dec. 31, 2010, (2) the\ndecedent was a citizen or resident on date of death, (3) the decedent\u2019s estate\nisn\u2019t required to file an estate tax return (that is, the decedent\u2019s\nestate is below the filing threshold in IRC Section 6018(a)) and\n(4) the estate didn\u2019t in fact file a timely estate tax return. To\navail themselves of the new procedure, the executor of the decedent\u2019s estate is\nrequired to file a completed estate tax return on or before the fifth<\/em> anniversary\nof the decedent\u2019s date of death, and the top of the return must\nstate: \u201cFILED PURSUANT TO REV. PROC. 2022-32 TO ELECT PORTABILITY UNDER\n2010(C)(5)(A).\u201d If the requirements of the revenue procedure are met, the\nreturn and the election will be considered timely filed, and the DSUE amount of\nthe decedent is available to the decedent\u2019s surviving spouse (or the estate of\nthe surviving spouse) for application to the surviving spouse\u2019s transfers made\non or after the decedent\u2019s date of death. <\/p>\n\n\n\n The new IRS announcement is good news because it allows for easy\nrelief to \u201cport over\u201d the decedent\u2019s unused unified estate tax exemption to the\nsurviving spouse.<\/p>\n","protected":false},"excerpt":{"rendered":" On July, 8, 2022, the Internal Revenue Service released Revenue Procedure 2022-32, which provides a simplified method for certain estates to make a late portability election to allow the surviving spouse of the decedent to use the decedent\u2019s unused unified gift and estate tax exemption (also known as the deceased spousal unused exclusion (DSUE)). The\u00a0Revenue\u00a0Procedure\u00a0expressly […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"1","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4277","post","type-post","status-publish","format-standard","hentry","category-planning-for-tax-minimization"],"_links":{"self":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/4277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/comments?post=4277"}],"version-history":[{"count":1,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/4277\/revisions"}],"predecessor-version":[{"id":4281,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/4277\/revisions\/4281"}],"wp:attachment":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/media?parent=4277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/categories?post=4277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/tags?post=4277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}