In this podcast, Bob Keebler covers Revenue Procedure 2014-18, which provides a simplified method for certain taxpayers to obtain an extension of time to make a portability election. Rev. Proc. 2014-18 provides an automatic extension for certain estates of decedents dying in 2011, 2012 and 2013 to elect portability. The extension applies to estates that would otherwise not have had a filing requirement, and allows the estates to file a return to elect portability until December 31. It includes the estates of same-sex decedents who were not eligible to elect portability until after the Windsor decision. Access more resources in the Planning After ATRA and NIIT Toolkit, including more podcasts, new charts by Bob Keebler as well as webcast recordings and Forefield Advisor alerts/videos, and the complete four-volume set of The CPA’s Guide to Financial & Estate Planning, recently updated for ATRA and NIIT, and much more.

1. Relief for Missed
Portability Elections
Rev. Proc. 2014-18
Presented by: Robert S. Keebler, CPA, MST
1

2. Rev. Proc. 2014-18
Summary of the Service’s Stated Purpose:
To provide a simplified method for certain
taxpayers to obtain an extension of time to
make a portability election.
© 2014 Robert S. Keebler, CPA, MST
Keebler & Associates, LLP
All Rights Reserved
American I nstitute of CPAs ®
2

3. Rev. Proc. 2014-18
The Estate Tax Regulations provide that an
estate is required to file a return in order to
elect portability.
See Treas. Reg. 20.2010-2T(a)(1).
© 2014 Robert S. Keebler, CPA, MST
Keebler & Associates, LLP
All Rights Reserved
American I nstitute of CPAs ®
3

4. Rev. Proc. 2014-18
United States v. Windsor & Rev. Rul. 2013-17
• In Windsor, the Supreme Court found the
Defense of Marriage Act unconstitutional
• In Rev. Rul. 2013-17 the Service determined
that it would construe the definition of the
terms “spouse,” “husband,” “wife,” etc… to
include married same sex couples.
© 2014 Robert S. Keebler, CPA, MST
Keebler & Associates, LLP
All Rights Reserved
American I nstitute of CPAs ®
4

5. Rev. Proc. 2014-18
Rev. Proc. 2014-18 Applies If:
(1) The estate of a decedent who:
(a) has a surviving spouse;
(b) died after December 31, 2010, and on or before
December 31, 2013; and
(c) was a citizen or resident of the United States on the
date of death.
(2) The taxpayer is not required to file an estate tax return
under § 6018(a)
(3) The taxpayer did not file an estate tax return within the
time required to elect portability; and
(4) All requirements of Section 4 of this revenue procedure
are satisfied.
© 2014 Robert S. Keebler, CPA, MST
Keebler & Associates, LLP
All Rights Reserved
American I nstitute of CPAs ®
5

6. Rev. Proc. 2014-18
Requirements of Section 4 – Procedural
(1) Form 706 must be filed on or before
December 31, 2014.
(2) Must state on top of Form 706: “FILED
PURSUANT TO REV. PROC. 2014-18 TO ELECT
PORTABILITY UNDER § 2010(c)(5)(A).”
© 2014 Robert S. Keebler, CPA, MST
Keebler & Associates, LLP
All Rights Reserved
American I nstitute of CPAs ®
6

7. Rev. Proc. 2014-18
PERIOD FOR CLAIM FOR CREDIT OR REFUND:
Claim for credit or refund of an overpayment of tax
must be filed within three years from the date of
filing the tax return, or within two years from the
date of payment of the tax, whichever period
expires later.
© 2014 Robert S. Keebler, CPA, MST
Keebler & Associates, LLP
All Rights Reserved
American I nstitute of CPAs ®
7

8. Rev. Proc. 2014-18
Example:
(a) S1 dies on 1/1/11, survived S2. S1’s gross estate consists bank
accounts held jointly with S2 with rights of survivorship in the
amount of $2,000,000. S1 made no taxable gifts during life. S1’s
executor is not required to file an estate tax return under § 6018(a),
and does not file such a return.
(b) S2 dies on 01/14/11. S2’s taxable estate is $8,000,000 and made
no taxable gifts during life. S2’s executor files a Form 706 on behalf
of S2’s estate on 10/14/11, and includes payment of the estate tax
on the $3,000,000 in excess of S2’s applicable exclusion amount.
© 2014 Robert S. Keebler, CPA, MST
Keebler & Associates, LLP
All Rights Reserved
American I nstitute of CPAs ®
8

9. Rev. Proc. 2014-18
Example (cont):
(c) Pursuant to this revenue procedure, S1’s executor files a Form
706 on behalf of S1’s estate on 11/1/14, reporting a DSUE amount
of $5,000,000. In 2015, the Service (i) determines that S1’s estate
has met the requirements for a grant of relief under this revenue
procedure and is deemed to have made a valid portability election,
(ii) accepts S1’s return with no changes, and (iii) issues an estate tax
closing letter to S1’s estate.
© 2014 Robert S. Keebler, CPA, MST
Keebler & Associates, LLP
All Rights Reserved
American I nstitute of CPAs ®
9

10. Rev. Proc. 2014-18
Example (cont):
To recover the estate tax paid, S2’s executor must file a claim for
credit or refund of tax by 10/14/14, even though a Form 706 to
elect portability has not been filed on behalf of S1’s estate at that
time.
Such a claim filed in anticipation of the filing of the Form 706 by
S1’s executor will be considered a protective claim for credit or
refund of tax.
© 2014 Robert S. Keebler, CPA, MST
Keebler & Associates, LLP
All Rights Reserved
American I nstitute of CPAs ®
10

11. Should you File for Portability?
Screen shot from the Portability Calculator
© Keebler Tax, Financial, and Wealth Software, Inc. All Rights Reserved.
American I nstitute of CPAs ®
11

12. Circular 230 Disclosure
Pursuant to the rules of professional conduct set forth in Circular 230, as
promulgated by the United States Department of the Treasury, nothing contained
in this communication was intended or written to be used by any taxpayer for the
purpose of avoiding penalties that may be imposed on the taxpayer by the
Internal Revenue Service, and it cannot be used by any taxpayer for such
purpose. No one, without our express prior written permission, may use or refer to
any tax advice in this communication in promoting, marketing, or recommending a
partnership or other entity, investment plan or arrangement to any other party.
For discussion purposes only. This work is intended to provide general
information about the tax and other laws applicable to retirement benefits. The
author, his firm or anyone forwarding or reproducing this work shall have neither
liability nor responsibility to any person or entity with respect to any loss or
damage caused, or alleged to be caused, directly or indirectly by the information
contained in this work. This work does not represent tax, accounting, or legal
advice. The individual taxpayer is advised to and should rely on their own
advisors.
American I nstitute of CPAs ®
12