CHAPTER 4
 
CLAIMS BY
AND AGAINST THE ESTATE
 

 
 
 
 

E.

Claims by Internal Revenue Service
     
   
1.

Notice of Fiduciary Relationship

     
    Under IRC Reg. §301.6903-1, as soon as all necessary information is available, notice is required to be given of the existence of a fiduciary relationship by filing IRS Form 56 with the IRS office at which the decedent filed his or her returns.

If notice is not filed, the fiduciary is charged with notice of debt for further taxes even though such notice may be sent to the taxpayer’s last address and not to the fiduciary.

When the fiduciary capacity has terminated, the fiduciary should file a written notice (IRS Form 56) of such termination with the IRS office where notice of appointment was originally filed.
     
2.   Request for Prompt Assessment
     
    Under IRC §6501(d), a personal representative may reduce the period for assessment of certain taxes from three (3) years to eighteen (18) months by filing IRS Form 4810 with the appropriate office. Under IRC §2204(a), the personal representative may request a determination of and discharge from personal liability for federal estate tax, to be made within nine (9) months after the filing of the Federal Estate Tax Return (IRS Form 706) or the date of the request, whichever is later. The personal representative may also request a determination and discharge from personal liability for decedent’s federal income and gift taxes to be made within nine (9) months after the filing of the applicable return or the date of the request, whichever is later. See IRC §6905.
     
3.   Priority of Claim
     
    PEF Code §3392 provides that, in the event of an insolvent estate, the personal representative shall pay claims in the order listed “subject to any preference given by law to claims due the United States.” See Weiss Estate and Hackney Estate, supra, with respect to federal tax claims.
 

 


 
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