BIR Ruling [DA-613-04]

December 1, 2004 BIR RULING [DA-613-04] 90 (C) & 91 (B) Mrs. Emilia Vidanes-Balaoing No. 17 Pinesville St., White Plains Quezon City M a d a m : This refers to your letter dated October 30, 2004 stating that your husband, Jose V. Balaoing, died on May 20, 2004; that you are still in the process of securing the necessary papers and documents required in filing the Estate Tax Return; that one of the requirements needed to be attached with the Estate Tax Return is the certified true copy of the Transfer Certificate of Title of the real property included in the estate of the decedent; that the original copy of the same was destroyed by fire in the Office of the Register of Deeds of Quezon City; that you already filed a petition for the reconstitution of the title of the said real property; however, recently, you have learned that the reconstitution of the title is yet to be process; that the six (6) months period provided by the Tax Code will expire on November 20, 2004; that you cannot file the Estate Tax Return within the prescribed period, hence, you are requesting for an extension of thirty (30) days within which to file the said return and an extension of two (2) years within which to pay the estate tax due thereon because the estate has no sufficient liquid resources. 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 time within which to pay the estate tax is hereby granted pursuant to Section 91(B) of the Tax Code of 1997. Accordingly, the estate tax due on the estate of Jose V. Balaoing may be paid up to two (2) years counted from May 20, 2004. On the other hand, under Section 90(C) of the Tax Code, a thirty-day extension is granted as an extension of the period within which to file the estate tax return, thus, considering that the last day for filing the estate tax return of the estate of Jose V. Balaoing is on November 20, 2004, the period within which to file the same is hereby extended up to December 20, 2004. Such being the case, you are hereby directed to immediately file the estate tax return in order to stop the running of the interest for late filing thereof. ICAcaH Moreover, in view of the above favorable action to your request for an extension of two (2) years within which to pay the estate tax, 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 Jose V. Balaoing. 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 aforesaid 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