SECTION 4. ELECTION TO APPLY

2012 ADJUSTED LIMITATIONS TO 2011 TAXABLE YEAR

For some locations, the limitation on housing expenses provided in section 3 of this notice may be higher than the limitation on housing expenses provided in the “Table of Adjusted Limitations for 2011” in Notice 2011–8. A qualified individual incurring housing expenses in such a location during 2011 may apply the adjusted limitation on housing expenses pro

vided in section 3 of this notice in lieu of the amounts provided in the “Table of Adjusted Limitations for 2011” in Notice 2011–8 (and as set forth in the Instructions to Form 2555 (2011)).

Treasury and the IRS anticipate that future annual notices providing adjustments to housing expense limitations will make a similar election available to qualified individuals that incur housing expenses in the immediately preceding year. For example, when adjusted housing expense limitations

2012–10 I.R.B. 449 March 5, 2012

by law (including extensions) for filing such return.

2.02. Filing Dates and Availability of an Extension

Under section 6075(a), the due date for filing an estate tax return is nine months after the date of the decedent’s death. Section 6081(a) provides that the Secretary may grant a reasonable extension of time for filing any return and that, except in the case of taxpayers who are abroad, no such extension may be for more than six months.

Section 20.6081–1(a) of the Estate Tax Regulations provides that a request for an extension of time to file Form 706 must be made by filing Form 4768 with the Internal Revenue Service (Service) office designated in the application’s instructions and must include an estimate of the amounts of estate and generation-skipping transfer tax liabilities with respect to the estate.

Section 20.6081–1(b) grants an estate an automatic six-month extension of time to file Form 706 if Form 4768 is filed on or before the due date for filing Form 706 and in accordance with the procedures under § 20.6081–1(a).

Section 20.6081–1(c) provides that the Service, in its discretion and upon the showing of good and sufficient cause, may grant an extension of time to file Form 706 to an estate that did not request an automatic extension of time to file Form 706 prior to the due date for Form 4768 prescribed in § 20.6081–1(b). Such an extension cannot be for more than six months beyond the filing date prescribed in section 6075(a), unless the executor is abroad. Section 20.6081–1(c) further provides that, to obtain such an extension, Form 4768 must be filed in accordance with the procedures under § 20.6081–1(a) and must contain a detailed explanation of why it is impossible or impractical to file a reasonably complete Form 706 by the due date, and an explanation showing good cause for not requesting the automatic extension.

2.03. Notice 2011–82

Notice 2011–82, 2011–42 I.R.B. 516, issued on October 17, 2011, alerts taxpayers of the applicable requirements to elect portability of the decedent’s DSUE

EFFECTIVE DATE

This notice is effective for taxable years beginning on or after January 1, 2012. However, as provided in section 4, a taxpayer may elect to apply the 2012 adjusted housing limitations contained in section 3 of this notice to his or her taxable year beginning in 2011.

DRAFTING INFORMATION

The principal author of this notice is Susan E. Massey of the Office of Associate Chief Counsel (International). For further information regarding this notice, contact Ms. Massey at (202) 622–3840 (not a tollfree call).

Extension of Time to File an Estate Tax Return Solely to Elect Portability of a Deceased Spousal Unused Exclusion Amount

Notice 2012–21