Wednesday, November 8, 2017
The internal revenue code contains a number of estate planning provisions modified by exclusions, deductions, brackets, and exemptions that are updated annually to accommodate inflation. Around this time every year, the IRS releases these updated figures. This year, the release of the figures comes via Revenue Procedure 2017-58. There are a number of notable changes occurring in 2018. Among them are an increase in the lifetime estate tax exemption limits, an increase in the gift tax annual exclusion and the annual exclusion for a spouse who is not a U.S. citizen. Also for 2018, a taxpayer’s failure to file a tax return within 60 days from the due date will result in an increased penalty of $215 or 100% of the actual taxes due on the tax return, whichever amount is lower.
See Mary Rennie Rowe “M.R.” Litman, Estate Planning Inflation Adjustments for Tax Year 2018 & 2017-2018 Priority Guidance Plan, Williams Mullen, November 2, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.