Manuela Dauz Vda. De Valdez

November 22, 2007 BIR RULING [DA-599-07] Sec. 91 (B) DA-285-98 Manuela Dauz Vda. De Valdez Quirino District, Taguding Ilocos Sur M a d a m : This refers to your letter dated September 25, 2007, requesting a two (2) year extension of time to file the estate tax return and pay the estate tax due on the estate of your late husband, Anselmo T. Valdez, pursuant to Sections 90 (C) and 91 (B) of the Tax Code of 1997. It is represented that the late Anselmo T. Valdez, died intestate on May 21, 2007, at #32992 Mission Blvd., Hayward, California, USA; that he was an American citizen, however, his last residence for the last six (6) months was in Quirino District, Tagudin, Ilocos Sur; that he died of his ailment upon his arrival at the USA when he was about to have his medical check-up there; that due to the foregoing circumstances, you are now experiencing the difficulty of collating all the properties and the necessary documents pertaining thereto coupled by the fact that the estate is not liquid due to the high cost of his medication/medical maintenance incurred during his lifetime. In reply, please be informed that Sections 90 (C) and 91 (B) of the Tax Code of 1997, provide, viz: "SEC. 90. Estate Tax Returns. "(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." "SEC. 91. Payment of Tax. "(B) Extension of Time when the Commissioner finds that the payment on the due date of the estate tax or of any part thereof would imposed 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 extrajudicially. 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." Accordingly, in view of the aforesaid justifiable reasons, your request for a 30-day extension of time to file the estate tax return from November 21, 2007 to December 21, 2007 and a two (2)-year period of time within which to pay the estate tax due thereon from November 21, 2007 to November 21, 2009, is hereby granted. cISAHT It shall be understood, however, that the estate shall be liable for the corresponding interests that have accrued thereon up to the time of payment of the estate tax due on the transmission by the said estate of the properties in favor of the heirs pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. DA-285-98 dated June 29, 1998) Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service