Does an estate tax filing extension also extend the payment deadline?
Key takeaway
A federal estate tax filing extension does not by itself extend the payment deadline. Form 706 is due within 9 months after death, and an automatic 6-month filing extension may be requested on Form 4768. Estate and generation-skipping transfer taxes are due within 9 months after death unless an extension to pay has been granted. These deadlines apply to estates that hold business, real estate, or private investment interests.
Filing time and payment time are separate
A filing extension extends the time to file the return. The IRS describes an automatic Form 4768 extension for filing, while estate and generation-skipping transfer taxes remain due within 9 months after death unless an extension to pay has been granted.
Form 4768 may be used to request more time to pay. The filing extension and a request for more time to pay address separate deadlines for an estate's federal obligations.
Federal deadlines run from death
The federal Form 706 filing deadline is within 9 months after death.
An estate with an operating business, real estate, or private investments has a return filing deadline and a tax payment deadline tied to death. The filing extension described for Form 706 does not itself change the payment deadline.
Minnesota has separate payment details
Minnesota states that interest on unpaid estate tax and penalties accrues from 9 months after death, even when filing is extended or tax is paid in installments.
Minnesota presumes that payment of at least 90 percent of the estate tax due shown on the return is a reasonable estimate. Form M706 and remaining tax must be filed and paid within 15 months of death.