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Member
 
Group: Forum Members
Last Login: 12/1/2009 12:47:02 PM
Posts: 44,
Visits: 58
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does anyone have experience with a request for a denied 6166 election to be treated as a 6161 election?
i have just filed an appeal with this request- the irs has so far been very unfamiliar with this process! (which is why i am now in appeals)...
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a very brief summary of the situation:
the estate is in litigation over all of its holdings (all real estate). all properties are co-owned with another estate that claimed to own 100% of everything. our estate client filed a section 6166 protective election, but that election was filed late (the return was filed late because it was impossible to file on time due to the litigation- it appeared at the date of death that the estate might own no property, due to the claims).
by the time that it was determined that the estate had potential valuable claims the returns were past the extended due date (the returns were filed showing 50/50 ownership and a claim of an unknown amount). thus, irs denied the 6166 and i requested that the denied 6166 be treated as grounds for a 6161 election (basically the "hardship" election). the litigation continues and the estate is unable to sell or borrow against any property (the court has still not ruled on the ownership issues), and thus unable to pay any tax (of course we still do not even know what the correct tax is!)
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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