Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Sunday, July 13, 2014

IRS Penalty for Late Filing Affirmed Despite Taxes Paid on Time

GavelAs I have previously discussed, last year the Federal Claims Court held an estate liable for a late filing penalty, which occurred due to the executor relying on legal advice to delay the filing until the surviving spouse became a U.S. citizen and qualified for a marital deduction. Even though the return was filed late, the estimated taxes, which covered the taxes due, were paid before the penalty period was reached. The decision by the Federal Claims Court was appealed.

In Estate of Liftin v. U.S., the United States Court of Appeals for the Federal Circuit affirmed the penalty assessed for filing late. The 25% penalty applied by the IRS was the same penalty that would have been applied if no payment had been made.

See Roger Russell, Estate Liable for Late-Filing Penalty Despite Timely Payment of Taxes, Accounting Today, July 9, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.


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