In an IRS private letter ruling, an estate was granted a 120-day extension to make a portability election under the Internal Revenue Code. The extension allows the surviving spouse to take into account the decedent’s deceased spousal unused exclusion (DSUE) amount. An estate tax return wasn’t filed on time and a portability election wasn’t made. The IRS found “the taxpayer acted reasonably and in good faith, and that granting relief will not prejudice the interests of the government.” Normally, a DSUE amount can’t be taken into account by a surviving spouse unless the estate executor timely files an estate tax return on which the election is made and the amount is computed. (LTR 202350011)
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