Says a pending QTIP extension request is relevant to an estate refund claim

Plain-English summary

An IRS office was considering an estate's refund claim while the taxpayer sought a private letter ruling for more time to sever a trust and make a qualified terminable interest property election. Chief Counsel advised that the ruling request presented an issue relevant to the refund claim. The decedent was survived by a spouse, and the executor had timely filed a complete and properly prepared estate tax return. That return made a portability election under section 2010(c)(5)(A), allowing the estate to take the deceased spouse's unused exclusion amount into account. The memorandum does not state how the refund claim or ruling request should ultimately be resolved.

Ruling snapshot

• Question: Was the pending request for relief to sever a trust and make a QTIP election relevant to the estate's refund claim?
• Outcome: Advice given, Chief Counsel said the ruling request raised an issue relevant to the refund claim.
• Key authorities: IRC §§ 2010(c)(2), 2010(c)(5)(A), and 2056(b)(7); Treas. Reg. § 301.9100-3

Full text (IRS public release)

ID: CCA_2018042614222765
UILC: 2010.04-00

Number: 201835005
Release Date: 8/31/2018
From: ----------------------
Sent: Thursday, April 26, 2018 2:22:27 PM
To: --------------------
Cc:
Bcc:
Subject: FW: L Case letter

From:
Sent: Thursday, April 26, 2018 2:16 PM
To:
Subject: L Case letter

ATTACHMENT 1

Office of Chief Counsel
Internal Revenue Service
memorandum
CC:PSI:B04:
PLR-133235-17

DATE: April 25, 2018

TO:

FROM:

SUBJECT: ----------------------------------------------------------

This is in reference to a claim for refund that your office is currently considering, filed by the above-referenced taxpayer on -----------------------. As we discussed in our telephone call on ------------------, the taxpayer is now seeking a private letter ruling from our office for an extension of time under § 301.9100-3 of the Procedure and Administration Regulations to sever a trust and to make a qualified terminable interest property election under § 2056(b)(7) of the Internal Revenue Code.

We believe the taxpayer’s request for a private letter ruling presents an issue that is relevant to your consideration of the taxpayer’s refund claim. The decedent was survived by his spouse. The executor of the decedent’s estate timely filed a complete and properly prepared Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. In so doing, the estate made a portability election on the return for purposes of § 2010(c)(5)(A), permitting the estate to take into account decedent’s deceased spousal unused exclusion amount under § 2010(c)(2).

If you have any further questions, please contact ------------------------- ----------------
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