1-561-514-0900 FREE CONSULTATION

Estate Must Pay $1.2 Million to IRS — recent Late-Filing Penalty Probate Case

Uncategorized Jan 8, 2015
post about Estate Must Pay $1.2 Million to IRS — recent Late-Filing Penalty Probate Case

Has a Florida estate or probate been subjected to a Late-Filing Penalty by the IRS for filing your US Estate Tax Return too late? If so, was the IRS Estate Tax late-filing penalty a lot bigger than you expected? West Palm Beach Probate Administration attorneys deal with Federal Estate Tax-Return issues all of the time.

Has a loved one passed away in Florida with a taxable estate?

  • If so, remember that a federal estate tax return (IRS Form 706) must be filed within 9 months of the decedent’s death.
  • Of course additional extensions can be granted.
  • Do you know WHEN extension of time to file a late US estate tax return may be granted?  Or how to get one?  You need a good estate tax lawyer in Florida.
  • However, make sure that your Aventura Estate Planner and Boca Raton estate administratorknow:
  • A late-filing penalty is mandatory when an executor fails to file any return by the due date, including any extensions.
  • The penalty can be as low of 5% of the amount of tax for each month late, up to a maximum of 25% per month.

Court in Recent Ohio Case Upholds $1.2M IRS Late-Filing Penalty on Estate:

  • Plaintiffs Janice Specht and Jon Hoffheimer challenged the late-filing fee imposed on theirOhio estate by the IRS.
  • Penalty Fee amounted to $1,198,261.38
  • This penalty was IN ADDITION TO the actual taxes and interest the estate paid to the IRS: Over $4.1M
  • The legal question is simple: Whether Specht and Hoffheimer failed to pay on time as a result of reasonable cause or willful neglect.
  • You can read more on this case using the following citation: Specht v. United States, 1:13-CV-705, 2015 WL 74539, at *1 (S.D. Ohio 2015)

West Palm Beach estate administrators know that, although extensions are sometimes granted, the IRS will not often budge once a due date is missed.  Make sure your Delray Beach Estate Planner has his calendar marked.

See http://www.pankauskilawfirm.com/ for videos and information on Wills in Florida, Florida Probate Law, Estate Planning, and Estate Administration in Florida.