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Is it possible to begin the running of the "statute of limitations" on Form 706 by filing a Form 706 that contains a "total gross estate" in an amount less than the filing requirement of $2,000,000 for 2006, or would this be considered an "invalid return" thereby leaving the "statute" open indefinitely?
This inquiry is made even though I understand that it is possible to file a 706 for the purpose of making an election to allocate the "GST Exemption" to specific trusts on Schedule R of Form 706 and perhaps for the purpose of making certain other specified elections even though the "total gross estate" would be less than the 706 filing requirement ($2,000,000 for 2006).
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i guess it might depend on the purpose that you are trying to toll the statute- i think that the filing should toll the statute for purposes of future assessments (after the expiration of the statute of limitations). my recollection is that the internal revenue code indicates that the statute of limitations is tolled by filing a tax return... it does not say "a required tax return".
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jeez... thought i was logged in!!
-allmon
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| Thanks. Purpose of running "statute" on non-required 706 filing is to start the statute period to run for a business valuation on closely-held business interest. The 'valuation discount' is the cause of the "total gross estate" falling below the required filing requirement ($2,000,000 for 2006).
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| Also, business valuation discount would be fully and adequately disclosed in valuation report and on 706.
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Member
 
Group: Forum Members
Last Login: 12/1/2009 12:47:02 PM
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so it sounds like without the discounts, you would have a filing requirement... i would absolutely file the 706 in that case-
Anonymous (11/3/2006)
Thanks. Purpose of running "statute" on non-required 706 filing is to start the statute period to run for a business valuation on closely-held business interest. The 'valuation discount' is the cause of the "total gross estate" falling below the required filing requirement ($2,000,000 for 2006).
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
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