SECTION 9. ESTATE — Internal Revenue Bulletin 2018-50

Statute or Regulation Act Postponed

Sec. 643(g) The trustee may elect to treat certain payments of estimated tax as paid by the beneficiary. The election shall be made on or before the 65th day after the close of the taxable year of the trust.
Sec. 645 and Sec. 1.645–1(c) An election to treat a qualified revocable trust as part of the decedent’s estate must be made by filing Form 8855, Election To Treat a Qualified Revocable Trust as Part of an Estate, by the due date (including extensions) of the estate’s Federal income tax return for the estate’s first taxable year, if there is an executor, or by the due date (including extensions) of the trust’s Federal income tax return for the trust’s first taxable year (treating the trust as an estate), if there is no executor.
Sec. 663(b) and Sec. The fiduciary of a trust or estate may elect to treat any amount properly paid or 1.663(b)–2 credited to a beneficiary within the first 65 days following the close of the taxable year as an amount that was properly paid or credited on the last day of such taxable year. If a return is required to be filed for the taxable year for which the election is made, the election shall be made on such return no later than the time for making such return (including extensions). If no return is required to be filed, the election shall be made in a separate statement filed with the internal revenue office with which a return would have been filed, no later than the time for making a return (including extensions).
Sec. 664, Sec. 642, and Sec. All charitable remainder trusts described under section 664, all pooled income 4947, and Secs. 1.664–1, funds described under section 642(c)(5), and all other trusts that meet the 1.642(c)–5, and 53.4947–1 definition of a split-interest trust under section 4947(a)(2) must file an annual

return, Form 5227, Split-Interest Trust Information Return, to report financial activities, provide information about charitable deductions and distributions, and determine if the trust is treated as a private foundation and subject to certain excise taxes on or before the 15th day of the fourth month following the close of the taxable year. In addition, a charitable remainder trust must give each recipient of a current distribution a Schedule K–1 (Form 1041) that reflects that recipient’s current distribution.

Sec. 2011(c) The executor of a decedent’s estate must file a claim for a credit for state estate, inheritance, legacy or succession taxes by filing a claim within four years of filing Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. (Section 2011 does not apply to estates of decedents dying after December 31, 2004; see section 2058).
Sec. 2014(e) The executor of a decedent’s estate must file a claim for foreign death taxes within four years of filing Form 706.
Sec. 2016 and Sec. If an executor of a decedent’s estate (or any other person) receives a refund of any 20.2016–1 state or foreign death taxes claimed as a credit on Form 706, the IRS must be notified within 30 days of receipt. (Section 2016 is amended effective for estates of decedents dying after December 31, 2004; see section 2058).
Sec. 2031(c) If an executor of a decedent’s estate elects on Form 706 to exclude a portion of the value of land that is subject to a qualified conservation easement, agreements relating to development rights must be implemented within two years after the date of the decedent’s death.
Sec. 2032(d) The executor of a decedent’s estate may elect an alternate valuation on a late filed Form 706 if the Form 706 is not filed later than one year after the due date.
Sec. 2032A(c)(7) A qualified heir, with respect to specially valued property, is provided a two-year grace period immediately following the date of the decedent’s death in which the failure by the qualified heir to begin using the property in a qualified use will not be considered a cessation of qualified use and therefore will not trigger additional estate tax.
Sec. 2032A(d)(3) The executor of a decedent’s estate has 90 days after notification of incomplete information/signatures to provide the information/signatures to the IRS regarding an election on Form 706 with respect to specially valued property.

Bulletin No. 2018–50 1003 December 10, 2018

Statute or Regulation Act Postponed

Sec. 2046 A taxpayer may make a qualified disclaimer no later than nine months after the later of the date of the transfer creating the interest, or the date the taxpayer attains age 21.
Sec. 2053(d) and Secs. If the executor of a decedent’s estate elects to take a deduction for state and 20.2053–9(c) and 10(c) foreign death tax imposed upon a transfer for charitable or other uses, the executor must file a written notification to that effect with the IRS before expiration of the period of limitations on assessments (generally three years). (Section 2053 is amended effective for estates of decedents dying after December 31, 2004, to apply only with respect to foreign death taxes).
Sec. 2055(e)(3) A party in interest must commence a judicial proceeding to change an interest into a qualified interest no later than the 90th day after the estate tax return (Form 706) is required to be filed or, if no return is required, the last date for filing the income tax return for the first taxable year of the trust.
Sec. 2056(d) A qualified domestic trust (QDOT) election must be made on Form 706, Schedule M, and the property must be transferred to the trust before the date on which the return is made. Any reformation to determine if a trust is a QDOT requires that the judicial proceeding be commenced on or before the due date for filing the return.
Sec. 2056A(b)(2) The trustee of a QDOT must file a claim for refund of excess tax no later than one year after the date of final determination of the decedent’s estate tax liability.
Sec. 2057(i)(3)(G) A qualified heir, with respect to qualified family owned business, has a two-year grace period immediately following the date of the decedent’s death in which the failure by the qualified heir to begin using the property in a qualified use will not be considered a cessation of qualified use and therefore will not trigger additional estate tax. (The section 2057 election is not available to estates of decedents dying after December 31, 2004).
Sec. 2057(i)(3)(H) The executor of a decedent’s estate has 90 days after notification of incomplete information/signatures to provide the information/signatures to the IRS regarding an election on Form 706 with respect to specially valued property.
Sec. 2058(b) The executor of a decedent’s estate may deduct estate, inheritance, legacy, or succession taxes actually paid to any state or the District of Columbia from the decedent’s gross estate. With certain exceptions, the deduction is only allowed provided the taxes are actually paid and the deduction claimed within four years of filing Form 706.
Sec. 2516 The IRS will treat certain transfers as made for full and adequate consideration in money or money’s worth where husband and wife enter into a written agreement relative to their marital and property rights and divorce actually occurs within the 3-year period beginning on the date one year before such agreement is entered into.
Sec. 2518(b) A taxpayer may make a qualified disclaimer no later than nine months after the later of the date of the transfer creating the interest, or the date the taxpayer attains age 21.
Sec. 2662(a) A return with respect to the tax imposed by Subtitle B, Chapter 13 (generationskipping tax), must be filed for direct skips, on or before the date on which an estate or gift tax return is required to be filed with respect to such transfer, and for all other cases, on or before the 15th day of the fourth month after the close of the taxable year of the person required to make such return in which such transfer occurs.
Sec. 2801(b) With respect to the tax imposed by section 2801 on any covered gift or covered bequest, the tax will be paid by the U.S. recipient of such covered gift or covered bequest.

December 10, 2018 1004 Bulletin No. 2018–50

Statute or Regulation Act Postponed

Sec. 2801(e) If the trustee of a foreign trust elects to be considered an electing foreign trust, so that the foreign trust is treated as a domestic trust solely for purposes of the section 2801 tax, the trustee must file a timely Form 708 annually either to report and pay the section 2801 tax on all covered gifts and covered bequests received by the trust during the calendar year, or to certify that the electing foreign trust did not receive any covered gifts or covered bequests during the calendar year.
Sec. 6035 Any person required to file a return under section 6018 shall furnish to the Secretary and to each person acquiring any interest in property included in the decedent’s gross estate for Federal estate tax purposes a statement identifying the value of each interest in such property and such other required information, no later than the earlier of the date which is 30 days after the date on which the return under section 6018 was required to be filed (including extensions, if any) or the date which is 30 days after the date such return is filed. Supplemental filing and statement(s) must be filed by the applicable due date as provided in the regulations.