Ms. Felicisima A. Balagot

May 28, 2010 BIR RULING [DA-(ET-001) 081-10] Section 90 (C) 1997 Tax Code; BIR RULING [UN-168-95]; 066-98; DA-136-98; DA-203-98; DA-261-00 Ms. Felicisima A. Balagot 191 Don Alfaro Street, Tetuan Zamboanga City Madam : This refers to your letters dated April 30, 2010 and May 28, 2010, requesting for extension of two (2) months within which to file and pay the estate tax return pursuant to Section 90 (C) of the Tax Code of 1997. It is represented that Fernanda Avena died in New York, U.S.A. on November 13, 2009; and that the family is experiencing financial difficulty aside from the fact that they are still at the state of quandary as to the extent of the estate of their mother, hence, this request to give the heirs the time to gather all the documents necessary for the filing of the return. In reply, Section 90 (C) of the Tax Code of 1997 provides: "SECTION 90. 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 days for filing the return. xxx xxx xxx" Moreover, pursuant to Section 91 (B) of the Tax Code of 1997, when the Commissioner finds that the payment on the due date of the estate tax or of any part thereof would impose difficulty 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. AEHTIC If an extension is granted, the Commissioner may require the executor, or administrator, or beneficiary, as the case may be, to furnish a bond in such amount, not exceeding double the amount of the tax and with such sureties as the Commissioner deems necessary, conditioned upon the payment of the said tax in accordance with the terms of the extension. Accordingly, your request for extension of time to file the estate tax return is hereby granted. Likewise, the payment of the estate tax, which, however, shall not exceed two (2) years to be reckoned from the date prescribed for payment, subject to the condition that the executor, administrator, or beneficiary shall furnish a bond not to exceed twice the amount of the estate tax due. (BIR Ruling No. [UN-168-95] dated April 19, 1995; BIR Ruling No. 066-98 dated May 21, 1998; DA-136-98 dated April 06, 1998; DA-203-98 dated May 21, 1998 and DA-261-00 dated June 15, 2000). Very truly yours, Commissioner of Internal Revenue By: (SGD.) MARISSA O. CABREROS OIC-Assistant Commissioner Legal Service