BIR Ruling [DA-136-98]

April 6, 1998 BIR RULING [DA-136-98] Mr. Jose Luis G. Montales 77-D Kanlaon Street Mandaluyong City S i r : This refers to your letter dated March 3, 1998 requesting, on behalf of the heirs of the late Aurora G. Montales, for an extension of thirty (30) days within which to file the estate tax return pursuant to then Section 83(c) of the Tax Code of 1977 [now Section 90(C) of the Tax Code of 1997] and for an extension of two (2) years to pay the estate tax due on the transmission of the said estate to the heirs pursuant to the provision of Section 84(b) of the Tax Code of 1977 [now Section 91(B) of the Tax Code of 1997]. cdi It is represented that the late Aurora G. Montales died intestate on September 9, 1997 at her residence in Libis, Calapan, Oriental Mindoro; that under the provision of Section 83(c) of the Tax Code of 1977 [now Section 90(C) of the Tax Code of 1997], the estate tax return was already due for filing last March 9, 1998; that you are constrained to make this request for the reason that you have not completed the preparation of the estate tax return; that you are still determining the gross estate and the deductions allowed therefrom; that you are also gathering the documents required to be filed together with the estate tax return; that your resources have been depleted because of the huge expenses incurred as a result of your mother's six-year bout with Parkinson's Disease; and that the payment of the estate tax, if any, or any part thereof on the due date would definitely impose undue hardship on the heirs of the late Aurora G. Montales. In reply, please be informed that then Section 83(c) and Section 84(b) of the Tax Code of 1977 [now Sections 90(C) and 91(B) of the Tax Code of 1997], reads: "SEC. 83. Estate Tax Returns . "xxx xxx xxx "(c) Extension of Time . The Commissioner shall have authority to grant, in meritorious cases, a reasonable extension not exceeding thirty (30) days for filing the return. "xxx xxx xxx" "SEC. 84. Payment of Tax . "xxx xxx xxx "(b) Extension of Time . When the Commissioner finds that the payment on the due date of the estate tax or any part thereof would impose undue hardship upon the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not to exceed five (5) years, in case the estate is settled through the courts, or two (2) years in case the estate is settled extra-judicially. In such case, the amount in respect of which the extension is granted shall be paid on or before the date of the expiration of the period of the extension, and the running of the Statute of Limitations for assessment as provided in Section 203 of this Code shall be suspended for the period of any such extension." "xxx xxx xxx" Accordingly, in view of the aforestated justifiable reasons, your request for an extension of thirty (30) days from March 9, 1998 to April 9, 1998 within which to file the estate tax return and a two (2) year extension from September 9, 1997 until September 9, 1999 within which to pay the estate tax due thereon is hereby granted pursuant to the above-quoted sections. aisadc It shall be understood, however, that the estate shall be liable to the corresponding interest that have accrued thereon up to the time of payment of the estate tax due on the transmission of the said estate to the heirs. Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue