Carryover Basis/GST Exemption Form 8939 Due January 17, 2012

For the estates of decedents who died in 2010, January 17, 2012, is the due date for filing IRS Form 8939 (Allocation of Increase in Basis for Property Acquired From a Decedent) if the executor chooses to elect out of the 2010 federal estate tax into the "modified carryover basis" rules that had been applicable for 2010 before Congress enacted the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 ("the 2010 Tax Act") in December 2010. Although we have observed that executors' work on preparing and finalizing the Forms 8939 to be filed is well underway, a few last-minute reminders and warnings may prove helpful.

The January 17 Due Date is Very Strict. There is no "automatic" six-month extension of time to file Form 8939, as we have become accustomed to in the case of the federal estate tax return. And the IRS will not grant extensions of the January 17 due date. The IRS (in Notices 2011-66 and 2011-76) has stated that an executor may