How to Amend Estate Form 706 and Apply for Extensions
6 of 8 in Series: The Essentials of Filing the Estate Tax Return (Form 706)
When filing Form 706, inaccuracies and missed deadlines are not, necessarily, the end of the world. If you made a mistake or unintentionally excluded some assets when you filed Form 706, you can amend the form within a designated period of time (assessment period). You can also request extensions of time to file or pay if you are having trouble meeting the deadlines.
Amending Form 706
You can amend Form 706 if you come across additional assets or deductions after filing the form and it is within the assessment period, or if you need to make any other allowable change to the return.
The assessment period is three years from the date of filing the 706, or six years if the additional assets represent more than a 25 percent increase over the gross estate as it was originally reported. However, if there is fraud committed in the filing of the 706 or no 706 is filed, there is no statute of limitations.
Form 706 may be amended as follows:
Prepare and file another 706, typing Supplemental Information across the top of page 1 the form.
Attach copies of pages 1, 2, and 3 of the 706 as originally filed.
Applying for extensions for Form 706
Sometimes you may need a few extra months to get everything organized with the estate before you can file Form 706. If you need an extension, send your extension request to the Department of the Treasury, Internal Revenue Service Center, Cincinnati, OH 45999, no later than the original due date for the return (nine months after date of death).
Extension of time to file
You receive a six-month automatic extension of time to file with regard to Forms 706, 706-A, 706-D, 706-NA, and 706-QDT as long as you file the extension request by the due date and include payment of the estimated amount of the estate tax. Just check the applicable box in Part II of the form.
If you have multiple executors or administrators, only one of you needs to file, or you can have your authorized attorney, certified public accountant, enrolled agent, or agent holding power of attorney file for you.
You may apply for a discretionary additional extension of time to file Form 706 only if you are an executor and are out of the country. Attach a statement explaining why it’s impossible or impractical to file the 706 by the due date.
If you don’t file for an automatic extension of time to file by the due date of the return, you can still file for an extension of time to file. You must show good and sufficient cause why it was impossible or impractical to file by the due date, and why the extension should be granted. The extension, if granted, is for no more than six months after the due date of the return.
Extension of time to pay
You may also use the Form 4768 to apply for an extension of time to pay the estate tax under section 6161 of the IRS Code (a discretionary extension of time to pay for reasonable cause), for a section 6163 election (reversionary or remainder interest), or for a section 6166 election (closely held business).
File Form 4768, Extension of Time to File a Return and/or Pay U. S. Estate (and Generation- Skipping Transfer) Taxes to apply for extensions of both time to file and time to pay.