120 days granted to a surviving spouse's estate to make a late QTIP election on a marital trust

Plain-English summary

When a married person dies, property left to the surviving spouse in a
qualifying marital trust can escape estate tax if the estate makes a
"qualified terminable interest property" (QTIP) election under § 2056(b)(7).
That election is normally made on the estate tax return (Form 706). Here, the
estate's accounting firm timely filed the Form 706 but forgot to list the
marital trust's assets on Schedule M, so no QTIP election was actually made.
An attorney later caught the mistake. The estate asked the IRS for extra time
under Treasury Regulation § 301.9100-3, which lets the IRS extend a missed
election deadline when the taxpayer acted reasonably and in good faith and
granting relief will not harm the government, including the situation where a
taxpayer reasonably relied on a tax professional who failed to make the
election. The IRS agreed and granted 120 days from the date of the letter to
make the QTIP election on a supplemental Form 706. This matters because
without the election, the marital trust assets could have been hit with
estate tax that the marital deduction was meant to defer.

Ruling snapshot

• Question: May an estate whose accountant failed to make a QTIP election
  on a timely-filed Form 706 get an extension of time to make that election?
• Outcome: Approved (120-day extension granted)
• Key authorities: IRC § 2056(b)(7); Treas. Reg. § 20.2056(b)-7; Treas.
  Reg. §§ 301.9100-1 and 301.9100-3

Full text (IRS public release)

 Internal Revenue Service                                      Department of the Treasury
                                                               Washington, DC 20224

 Number: 202614010                                             Third Party Communication: None
 Release Date: 4/3/2026                                        Date of Communication: Not Applicable
 Index Number: 2056.00-00, 2056.07-00,
               9100.00-00                                      Person To Contact:
                                                               -----------------, ID No. -----------------
 -------------------------------------------                   Telephone Number:
 --------------------                                          ---------------------
 ------------------------                                      Refer Reply To:
 -------------------------------                               CC:PT&E:B04
                                                               PLR-113645-25
                                                               Date:
                                                               January 14, 2026
          RE: ----------------------------------------------
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LEGEND

Decedent                  =        ---------------------------------------------------------
Spouse                    =        ----------------------------------------------
Trust                     =        ------------------------------------------
Date 1                    =        -------------------------
Date 2                    =        ----------------------
Date 3                    =        --------------------------
Date 4                    =        --------------------------
Accounting Firm           =        --------------------------------------------
Attorney                  =        ----------------

Dear ----------------:

This letter responds to your authorized representative’s letter dated March 7, 2025, and
subsequent correspondence, submitted on behalf of Decedent’s estate, requesting an
extension of time under § 301.9100-1 and § 301.9100-3 of the Procedure and
Administration Regulations to make a qualified terminable interest property (QTIP)
election under § 2056(b)(7) of the Internal Revenue Code (Code).

The facts and representations submitted are as follows. On Date 1, Decedent and
Spouse established a revocable trust, Trust. Decedent died on Date 2, survived by
Spouse. Trust became irrevocable upon Decedent’s death.

Article Two of Trust provides that if Spouse survives Decedent, the Trust is to be
divided into three separate trusts: the Survivor’s Trust, the Bypass Trust, and the Marital
Trust. The Survivor’s Trust is to be funded with Spouse’s separate property and
Spouse’s share of community property. The Bypass Trust is to be funded with assets
equal to the largest amount that can pass free of Federal estate tax. The Marital Trust
is to be funded with any remaining assets. This ruling pertains to the Marital Trust only.
PLR-113645-25                                 2

Article Seven of Trust provides that, during Spouse’s lifetime, the trustee of Marital Trust
shall pay to Spouse the entire net income from Marital Trust in quarterly or more
frequent installments. In addition, Spouse has the right to require the trustee to make
trust property productive or to convert trust property to income-producing property.

Article Seven further provides that trustee may make distributions of Marital Trust
principal to Spouse, as necessary, for reasonable support.

Article Seven further provides that the purpose of Marital Trust is to qualify for the
marital deduction allowable for Federal estate tax purposes and states that the trustee
may make an election to treat property passing to Marital Trust as “qualified terminal
interest property” as it is defined in § 2056(b)(7).

The executors of Decedent’s estate engaged Accounting Firm to prepare Decedent’s
Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and to
make any necessary elections, including a QTIP election.

It is represented that the Form 706 was timely filed on Date 3 on behalf of Decedent’s
estate. However, Accounting Firm mistakenly failed to include the assets of Marital
Trust or any other property as property subject to the QTIP election in Part A of the
Schedule M. Thus, no QTIP election was made on Decedent’s Form 706 filed on
Date 3.

On Date 4, upon further review of Decedent’s Form 706, Attorney discovered Marital
Trust assets were incorrectly reported, and a valid QTIP election was not made on the
Date 3 Form 706.

You have requested an extension of time under §§ 301.9100-1 and 301.9100-3 to make
the QTIP election under § 2056(b)(7) to treat Marital Trust as QTIP property.

LAW AND ANALYSIS

Section 2001(a) of the Code imposes a tax on the transfer of the taxable estate of every
decedent who is a citizen or resident of the United States.

Section 2056(a) provides that, for purposes of the tax imposed by § 2001, the value of
the taxable estate shall, except as limited by § 2056(b), be determined by deducting
from the value of the gross estate an amount equal to the value of any interest in
property which passes or has passed from the decedent to the surviving spouse, but
only to the extent that such interest is included in determining the value of the gross
estate. Section 2056(b)(1) provides the general rule that no deduction shall be allowed
under § 2056(a) for an interest passing to the surviving spouse if, on the lapse of time,
on the occurrence of an event or contingency, or on the failure of an event or
contingency to occur, the interest will terminate or fail.
PLR-113645-25                                   3

Section 2056(b)(7)(A) provides that, in the case of QTIP, such property shall be treated
as passing to the surviving spouse, and for purposes of § 2056(b)(1)(A), no part of such
property shall be treated as passing to any person other than the surviving spouse.

Section 2056(b)(7)(B)(i) defines the term “QTIP” as property: (I) which passes from the
decedent; (II) in which the surviving spouse has a qualifying income interest for life as
defined in § 2056(b)(7)(B)(ii); and (III) to which an election under § 2056(b)(7) applies.

Section 2056(b)(7)(B)(ii) provides that the surviving spouse has a qualifying income
interest for life if: (I) the surviving spouse is entitled to all the income from the property
payable annually or at more frequent intervals, or has a usufruct interest for life in the
property, and (II) no person has a power to appoint any part of the property to any
person other than the surviving spouse.

Section 2056(b)(7)(B)(v) provides that an election under § 2056(b)(7) with respect to
any property shall be made by the executor on the return of tax imposed by § 2001.
Such an election, once made, shall be irrevocable.

Section 20.2056(b)-7(b)(4)(i) of the Estate Tax Regulations generally that the QTIP
election is made on the last estate tax return filed by the executor on or before the due
date of the return, including extensions, or, if a timely return is not filed, the first estate
tax return filed by the executor after the due date.

Section 301.9100-1(c) provides that the Commissioner has discretion to grant a
reasonable extension of time under the rules set forth in §§ 301.9100-2 and 301.9100-3
to make a regulatory election, or a statutory election (but no more than six months
except in the case of a taxpayer who is abroad), under all subtitles of the Internal
Revenue Code except subtitles E, G, H, and I.

Section 301.9100-3 provides the standards used to determine whether to grant an
extension of time to make an election whose date is prescribed by a regulation (and not
expressly provided by statute).

Requests for relief under § 301.9100-3 will be granted when the taxpayer provides the
evidence to establish to the satisfaction of the Commissioner that the taxpayer acted
reasonably and in good faith, and that granting relief will not prejudice the interests of
the government.

Section 301.9100-3(b)(1)(v) provides that a taxpayer is deemed to have acted
reasonably and in good faith if the taxpayer reasonably relied on a qualified tax
professional, including a tax professional employed by the taxpayer, and the tax
professional failed to make, or advise the taxpayer to make, the election.

Based on the facts submitted and the representations made, we conclude that the
requirements of § 301.9100-3 have been satisfied. Accordingly, Decedent’s estate is
PLR-113645-25                                   4

granted an extension of time of 120 days from the date of this letter to make a QTIP
election with respect to Marital Trust.

The election should be made on a supplemental Form 706 filed with the Internal
Revenue Service Center at the following address: Department of the Treasury, Internal
Revenue Service Center, Attn: E&G, Stop 824G, 7940 Kentucky Drive, Florence, KY
41042-2915. A copy of this letter should be attached to the supplemental Form 706.

Except as expressly provided herein, no opinion is expressed or implied concerning the
tax consequences of any aspect of any transaction or item discussed or referenced in
this letter.

This ruling is directed only to the taxpayer requesting it. Section 6110(k)(3) of the Code
provides that it may not be used or cited as precedent.

In accordance with the Power of Attorney on file with this office, a copy of this letter is
being sent to your authorized representative.

The rulings contained in this letter are based upon information and representations
submitted by the taxpayer and accompanied by a penalty of perjury statement executed
by an appropriate party. While this office has not verified any of the material submitted
in support of the request for rulings, it is subject to verification on examination.


                                          Sincerely,

                                          Associate Chief Counsel
                                          (Passthroughs, Trusts, and Estates)




                                    By:              /S/
                                          Melissa C. Liquerman
                                          Senior Counsel, Branch 4
                                          Office of the Associate Chief Counsel
                                          (Passthroughs, Trusts, and Estates)
PLR-113645-25                                          5

Enclosure:
      Copy for § 6110 purposes

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