IRS and SSA Announce Inflation-Adjusted Amounts for 2013
- October 22, 2012 - The IRS has announced certain inflation-adjusted amounts for 2013. The announcement does not contain the inflation adjustments for tax brackets because of the pending EGTRRA expiration, but some important numbers have been released. The Social Security Administration has also announced that SSI benefits will increase 1.7% in 2015, and that the maximum amount of earnings subject to Social Security tax will be $113,700 in 2013.
Extended Deadline For Filing Form 706 To Make Portability Election
- February 19, 2012 - In IR-2012-24 (Feb. 17, 2012), the IRS announced that it was extending the deadline for estates to file Form 706 in the estate of a deceased spouse to make the portability election for the unused portion of the estate tax exemption for use in the surviving spouse's estate if the surviving spouse dies in either 2011 or 2012. The extension is only applicable for estates of a married decedent who died from January 1, 2011, through June 30, 2011. In the announcement, IRS said that an extension will be granted if the estate executor files Form 4768 within 15 months of the decedent's date of death. The extension results in the estate having 15 months from the date of death to file Form 706 on which the portability election is made. In addition, the extension is available even if the estate did not File Form 4768 before the nine-month (from date of death) filing deadline. Thus, for example, with respect to the death of the first spouse on January 1, 2011, Form 4768 could still be filed to extend the deadline for filing Form 706 to Monday, April 2, 2012. The IRS has provided additional detail concerning the extension in Notice 2012-21.