{"id":467,"date":"2011-12-22T20:21:27","date_gmt":"2011-12-22T20:21:27","guid":{"rendered":"http:\/\/www.uspropertyownersabroad.com\/?p=52"},"modified":"2011-12-22T20:21:27","modified_gmt":"2011-12-22T20:21:27","slug":"the-return-is-due-when","status":"publish","type":"post","link":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/the-return-is-due-when\/","title":{"rendered":"The Return is Due When?"},"content":{"rendered":"

The moment a nonresident, non-US citizen passes away with US property in his possession, the US estate tax clock starts to tick away the minutes to when the return is due.\u00a0\u00a0The Internal Revenue Service requires a foreign estate that owns US property to file an estate tax return within 9 months after the date of death.<\/strong>\u00a0 For example, Sam is a citizen of Country X. Though neither a citizen nor a resident, he acquired property within the US.\u00a0 He mentioned the property periodically to friends and family, but no one ever thought much about it.\u00a0 Then, unexpectedly, Sam dies on 30 March 2011.\u00a0 The clock begins to run to the due date on his estate tax return 1 April 2011, and ends 31 December 2011.<\/p>\n

On 20 December 2011, as you are going through Sam\u2019s papers and preparing his Country X estate tax return, you discover information about Sam\u2019s US property.\u00a0 If the panic starts to set in take a deep breath.\u00a0\u00a0You can apply for an automatic 6 months extension.[1]<\/strong><\/a><\/strong>\u00a0 The Internal Revenue Service allows an estate to file an extension and receive an additional 6 months of time to send an estate tax return, as long asit receives \u00a0the extension on or before the due date of the return.[2]<\/a>\u00a0 The return is now due 30 June 2012.\u00a0 \u00a0\u00a0If you fail to file the return by the due date, the Internal Revenue Service will access penalties and interest on the estate, if tax is owed.<\/p>\n

As 30 June 2012 approaches and you are still trying to gather all the information on the US property, an executor who is out of the country can request an additional extension of time to file the return.[3]<\/a>\u00a0 However, if the estate has already filed the automatic 6-month extension, and needs to apply for an additional extension, it should submit the extension request early enough to the Internal Revenue Service so that it can consider the application.<\/p>\n

But what happens if \u00a02 January 2012 rolls around, and you\u2019ve failed to file the application for an automatic 6 month extension?\u00a0 The Internal Revenue Service requests that you file the application as soon as possible and show good and sufficient cause for failing to file the automatic extension.[4]<\/a>\u00a0 In its discretion, it may grant an extension of time.[5]<\/a>\u00a0\u00a0Please note, an extension of time to file does not grant an estate an extension of time to pay any tax due.[6]<\/strong><\/a><\/strong>\u00a0 We will discuss this issue in a later post.<\/p>\n

So, what if you filed an extension, but the estate was not required to file a US estate tax return? Unless you want the IRS as an international pen pal, I suggest \u00a0your executor \u00a0send a letter stating that no return is required for the estate.[7]<\/a><\/p>\n


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[1]<\/a>\u00a0IRC \u00a76081(a).; Treas. Reg. \u00a720.6081-1(b).<\/p>\n<\/div>\n

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[2]<\/a>\u00a0Id.<\/em><\/p>\n<\/div>\n

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[3]<\/a>\u00a0Treas. Reg. \u00a720.6081-1(c),<\/p>\n<\/div>\n

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[4]<\/a>\u00a0Id.<\/em><\/p>\n<\/div>\n

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[5]<\/a>\u00a0Id.<\/em><\/p>\n<\/div>\n

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[6]<\/a>\u00a0Treas. Reg. \u00a720.6081-1(e).<\/p>\n<\/div>\n

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[7]<\/a>\u00a0IRS, Instructions for Form 4768 (Rev. July 2008).<\/p>\n

IMPORTANT NOTICE TO READERS<\/strong><\/p>\n

The information contained on this blog is not legal advice. \u00a0It is provided only as general information, and may or may not reflect the most up-to-date legal developments. \u00a0This information is not provided in the course of, and receipt of it does not constitute, an attorney-client relationship.\u00a0 It certainly does not substitute for obtaining legal advice from a licensed attorney. \u00a0Legal advice should take into account the specific facts and circumstances applicable to each individual situation. \u00a0Viewing this site and reading this blog does not create an attorney-client relationship between you and our firm.\u00a0 Likewise, sending me an email does not create an attorney-client relationship between you and the firm.\u00a0\u00a0 While I would be happy to hear from you, Flott & Co. PC cannot represent you until we have determined that doing so will not be a conflict of interest. \u00a0The only way for you to initiate legal representation with the firm is to call me at\u00a0(703) 525-5110\u00a0(X122). \u00a0If and when Flott & Co. PC \u00a0enters into an engagement agreement with you, you will be a client of the firm, at which time we will be able to exchange information freely.<\/p>\n

Unless otherwise indicated by Flott & Co. PC in writing, any US federal tax advice contained in this blog is not intended or written to be used, and cannot be used, for either (i) avoiding penalties under the US Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matter addressed within. For further information regarding this notice, please see\u00a0http:\/\/www.flottco.com\/emailnotice.pdf<\/wbr><\/a>.<\/strong><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The moment a nonresident, non-US citizen passes away with US property in his possession, the US estate tax clock starts to tick away the minutes to when the return is due.\u00a0\u00a0The Internal Revenue Service requires a foreign estate that owns US property to file an estate tax return within 9 months after the date of…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,11],"tags":[22],"class_list":["post-467","post","type-post","status-publish","format-standard","hentry","category-us-taxation","category-us-tax-returns-for-non-residents","tag-jeanne-franklin"],"_links":{"self":[{"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/posts\/467","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/comments?post=467"}],"version-history":[{"count":0,"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/posts\/467\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/media?parent=467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/categories?post=467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/tags?post=467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}