IRS grants an estate extra time to make a missed QTIP marital-deduction election

Plain-English summary

A married couple had a revocable trust. When the first spouse died, part of the trust became irrevocable and funded a marital trust for the surviving spouse, with the remainder eventually passing to their descendants. Property left in this kind of trust can qualify for the estate tax marital deduction (which defers estate tax until the surviving spouse dies) only if the executor makes a "qualified terminable interest property" (QTIP) election under IRC § 2056(b)(7) on the estate tax return, Form 706. Here the accountant preparing the return failed to advise the surviving spouse about the QTIP election and filed Form 706 without it, even after the attorney flagged the omission. The surviving spouse, as executor, asked the IRS for an extension of time to make the election under the "9100 relief" rules of Treas. Reg. § 301.9100-3, which apply when the taxpayer acted reasonably and in good faith (including reasonable reliance on a tax professional) and relief will not prejudice the government. The IRS granted 120 days from the date of the letter to make the QTIP election on a supplemental Form 706.

Ruling snapshot

• Question: Should the estate get an extension of time under § 301.9100-3 to make a late QTIP election for the marital trust under § 2056(b)(7)?
• Outcome: Approved (120-day extension to make the QTIP election on a supplemental Form 706).
• Key authorities: IRC § 2056(b)(7); Treas. Reg. § 20.2056(b)-7(b)(4)(i); Treas. Reg. §§ 301.9100-1 and 301.9100-3; IRC § 2001.

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury
Washington, DC 20224

Number: 202625014
Release Date: 6/18/2026
Index Number: 2056.00-00, 2056.07-00, 9100.00-00

Third Party Communication: None
Date of Communication: Not Applicable

Person To Contact:
---------------------, ID No. -----------------
Telephone Number:

Refer Reply To:
CC:PT&E:B04
PLR-115452-25
Date:
March 19, 2026

Re: --------------------------------

Legend

Decedent = -------------------
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Spouse = --------------------
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Trust = --------------------------------
Date 1 = -----------------------
Date 2 = ---------------------
Date 3 = -----------------
Date 4 = -------------------
Date 5 = -------------------
Attorney = -------------------
Accountant = ----------------------

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

This letter responds to a letter dated August 4, 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. Thus, on Date 2, the portion of Trust containing Decedent's separate property and Decedent's one-half interest in community property became irrevocable.

Articles Six, Seven, Eight, and Ten of Trust provide for the distribution of Trust property upon the death of the first to die of Decedent and Spouse.

Sections 6.01 and 6.02 provide that, upon the first to die of Decedent and Spouse, Trust will become irrevocable as to the deceased spouse's interest in any community property in Trust and the deceased spouse's separate property in Trust.

Section 6.08 provides that the trustee of Trust may elect to have any Trust property qualify for the federal estate tax marital deduction as qualified terminable interest property under § 2056(b)(7).

Section 7.01 provides that the trustee of Trust shall distribute the deceased spouse's tangible personal property to a survivor's trust for the benefit of the surviving spouse.

Section 8.01 provides that the trustee of Trust shall allocate all or that portion of the deceased spouse's remaining Trust property for which the trustee makes a QTIP election under § 2056(b)(7) to a marital trust to be administered as provided in Article Ten (Marital Trust). The trustee shall allocate the balance of the deceased spouse's Trust property to a remainder trust for the benefit of the surviving spouse.

Section 10.01 provides that the trustee of Trust shall distribute all of the net income of Marital Trust to the surviving spouse at least annually during the surviving spouse's lifetime and may distribute so much of the principal of Marital Trust to surviving spouse as the trustee determines necessary for the surviving spouse's health, education, maintenance, and support.

Section 10.04 provides that the trustee of Trust shall convert any unproductive property held in Marital Trust to productive property.

Section 10.05 provides that it is Decedent and Spouse's intent that Marital Trust property constitute qualified terminable interest property for federal tax purposes.

Section 10.06 provides that Marital Trust will terminate upon the surviving spouse's death and the trustee shall distribute all remaining assets in Marital Trust to Decedent's and Spouse's descendants outright.

After Decedent's death, Spouse, in Spouse's capacity as executor of Decedent's estate, retained Accountant to prepare Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, for Decedent's estate, and Spouse also retained Attorney to assist in estate planning matters. Spouse relied on Accountant for advice regarding preparation of the Form 706 and federal estate tax matters. Accountant failed to advise Spouse regarding the availability of the QTIP election. On Date 3, Accountant prepared a draft of the Form 706 for Attorney to review. The draft of the Form 706 sent to Attorney on Date 3 did not report any assets as QTIP Property on Schedule M, "Bequests, etc., to Surviving Spouse." On Date 4, Attorney replied to Accountant noting the missed QTIP election with respect to Marital Trust. However, Accountant missed Attorney's correspondence and, on Date 5, Accountant filed the Form 706 with the Internal Revenue Service on behalf of Decedent's estate without a QTIP election being made for Marital Trust. Sometime after the filing, Accountant discovered the failure to report Marital Trust assets on Schedule M and to make the QTIP election and advised Spouse of the error.

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)(7)(A) provides that, in the case of qualified terminable interest property, for purposes of § 2056(a), 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 "qualified terminable interest property" 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)(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 provides that, in general, the election referred to in § 2056(b)(7)(B)(i)(III) and (v) is made on the return of tax imposed by § 2001. For purposes of this paragraph, the term "return of tax imposed by § 2001" means 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. Therefore, the executor of Decedent's estate is 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, 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:     Melissa C. Liquerman
                                               Senior Counsel, Branch 4
                                               Office of the Associate Chief Counsel
                                               (Passthroughs, Trusts, and Estates)

Enclosure:
Copy for § 6110 purposes

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