BIR Ruling [DA-217-03]

July 9, 2003 BIR RULING [DA-217-03] Sec. 90 Ms. Teresita V. Quintero No. 47, Ifugao Street, La Vista Quezon City M a d a m : This refers to your letter dated June 3 and July 1, 2003 requesting on behalf of the legal heirs of your late father, Conrado V. Quintero, for an extension of thirty (30) days within which to file the estate tax return and two (2) years to pay the estate tax due thereon. It is represented that your late father, Conrado V. Quintero, died on December 7, 2002; that he was hospitalized for more than one (1) year; that you suffered financial distress due to the hospital bills you incurred; that now you are encountering extreme difficulty in raising the estimated amount of the estate tax due for the estate; and that you will not be able to file the said return and pay within the prescribed period, hence, you are constrained to seek a 30-day extension within which to file the required estate tax return and two (2) years extension to pay the estate tax due thereon since you will settle the estate extrajudicially. 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 7, 2003, which is the last day for filing of the estate tax return of your late father, Conrado V. Quintero, is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to July 7, 2003 pursuant to Section 90(C) of the Tax Code of 1997. IaSCTE Moreover, your request for an extension of two (2) years within which to pay the estate tax due is also hereby granted. Accordingly, the payment of the estate tax is extended up to June 7, 2005. In view of the foregoing, this Office has decided to forego within the two-year period the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of your late father, Conrado V. Quintero, to his 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 payment of the estate tax pursuant to Section 249 of the Tax Code of 1997. Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service