BIR Ruling [DA-101-02]

May 30, 2002 BIR RULING [DA-101-02] Sec. 90 (C) DA 260-2000 Sanidad Abaya Te Viterbo Enriquez & Tan Law Firm 2nd Floor, Transorient Maritime Building 66 Timog Avenue, Quezon City Attention: Attys. Edgardo R. Abaya & Alexes M. Enriquez Gentlemen : This refers to your letter dated May 16, 2002 requesting, on behalf of the legal heirs of the late Carmen R. Agbayani , for an extension of thirty (30) days counted from June 5, 2002 within which to file the estate tax return and pay the estate taxes due thereon. It is represented that the late Carmen R. Agbayani died intestate on December 5, 2001; that at present, her heirs are still in the process of extra-judicially settling her estate; that several documents which are needed in the settlement of her estate are not yet available; and that in view thereof, her heirs are requesting for a period of thirty (30) days within which to submit the required estate tax return. In reply thereto, please be informed that under Section 90(B) and (C) of the Tax Code of 1997, estate tax return is required to be filed within six (6) months from the decedent's death, and in meritorious cases, a reasonable extension not exceeding thirty (30) days for filing the return may be granted by the Commissioner of Internal Revenue. The payment of the estate tax or any part thereof shall be made upon the filing of the return or on such date as fixed if an extension is granted by the Commissioner, but in no case to exceed five (5) years in case the estate is settled through the courts, or two (2) years in case the estate is settled extrajudicially pursuant to Section 91(B) of the Tax Code of 1997. Based on the aforestated justifiable reason, your request for an extension of thirty (30) days counted from June 5, 2002, which is the last day for filing of the estate tax return of the late Carmen R. Agbayani is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to July 5, 2002 pursuant to Section 90(C) of the Tax Code of 1997. In view of the foregoing, this Office has decided to forego the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of the late Carmen R. Agbayani to her heirs. However, it shall be understood that the estate shall be liable for the corresponding interest that have accrued thereon up to the time of filing of the estate tax return pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. DA 260-2000 dated June 9, 2000) Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Acting Assistant Commissioner Legal Service