SECTION 4. RELIEF FOR UNTIMELY

REVERSE QTIP ELECTIONS

.01 Definitions . (1) Executor . Solely for purposes of this revenue procedure, the term executor includes: an executor of an estate as defined in § 2203 and §§ 20.2203–1 and § 20.2056(b)–7(b)(3) of the Estate Tax Regulations; the trustee of the QTIP trust; or any other person in actual or constructive possession of the property, for which the reverse QTIP election will be made.

(2) Decedent . For purposes of this revenue procedure, the term decedent refers to the individual for whose estate the reverse QTIP election was not timely made.

(3) Reverse QTIP Election . For purposes of this revenue procedure, a reverse QTIP election refers to the affirmative indication on Schedule R of Form 706 by the executor to treat the decedent as the transferor for GST purposes of the QTIP trust or property to which the election pertains. As a result of this election, the decedent’s GST tax exemption may be allocated to the QTIP trust or property. This is the case even though the surviving spouse or the surviving spouse’s estate will be subject to the gift or estate tax with respect to the property before the property passes to a skip person.

(4) Due Date of the Reverse QTIP Election . Section 26.2652–2(b) provides that the reverse QTIP election is made on the return on which the QTIP election is made. Section 20.2056(b)–7(b)(4)(i) provides that the QTIP election under § 2056(b)(7) must be made on the last estate tax return filed by the executor on or before the due date of the return, including extensions (if any). If a timely return is not filed, the election must be made on the first estate tax return filed by the executor after the due date. Estate tax returns must be filed within 9 months after the date of the decedent’s death, not including extensions.

.02 Eligibility for Relief . Relief is available under section 4.02 of this revenue procedure if, on the date of the filing of the request described in 4.03 of this revenue procedure, the following requirements are met:

(1) A valid QTIP election under § 2056(b)(7) was made for the property or trust on the federal estate tax return filed for the decedent’s estate;

(2) The reverse QTIP election was not made on the estate tax return as filed because the taxpayer relied on the advice and counsel of a qualified tax professional and that qualified tax professional failed to advise the taxpayer of the need, advisability, or proper method to make a reverse QTIP election;

(3) The decedent has a sufficient amount of unused GST exemption, after the automatic allocation of the GST exemption under § 2632(e) and § 26.2632–1(d)(2), to result in a zero-inclusion ratio for the reverse QTIP trust or property;

(4) The estate is not eligible under § 301.9100–2(b) for an automatic 6-month extension;

(5) The surviving spouse has not made a lifetime disposition of all or any part of the qualifying income interest for life in the QTIP trust or property;

(6) The surviving spouse is alive or no more than 6 months have passed since the death of the surviving spouse; and

(7) Relief is requested by the executor in accordance with section 4.03 of this revenue procedure.

.03 Procedural Requirements for Relief . (1) The estate must file with the Internal Revenue Service a request for an extension of time to make a reverse QTIP election. The request should have a cover sheet requesting relief that states at the top of the document “REQUEST FOR EXTENSION FILED PURSUANT TO REV. PROC. 2004–47.” The following items must be attached to the request for relief:

(a) Copies of Parts 1 through 5 and Schedule M of the original estate tax return filed with the Service;

(b) A properly completed Schedule R as required to make the reverse QTIP election;

(c) A statement describing why the reverse QTIP election was not made on the estate tax return as filed;

August 9, 2004 171 2004–32 I.R.B.

QTIP trust or property. As a result, the decedent’s remaining GST tax exemption will be automatically allocated pursuant to § 2632(e) and § 26.2632–1(d)(2) to the QTIP trust or property for which the reverse QTIP election was made, based on the value of the trust or property as finally determined for federal estate tax purposes. The relief provided by this revenue procedure does not include or grant permission to allocate retroactively the decedent’s remaining GST exemption or to make a late severance of a trust included in the gross estate.