Ms. Corazon V. Julian

August 29, 2008 BIR RULING [DA-(ET-007) 183-08] 90 (C); DA-636-2007 Ms. Corazon V. Julian Manila M a d a m : This refers to your letter dated July 17, 2008 requesting on behalf of the heirs of the late Flora-Valero-Rodriguez 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. DEIHSa It is represented that the late Flora Valero-Rodriguez died intestate on February 3, 2008; that on March 31, 2008, a notice of death was filed with the Revenue District Office pursuant to Section 89 of the Tax Code of 1997; that the heirs have a period of six (6) months from the time of death of their mother within which to file the estate tax return and pay the aforesaid taxes or until August 1, 2008; and that the heirs would like to request for an extension of time to file the estate tax return considering that they are still in the process of gathering and locating the relevant documents pertaining to the estate left by their mother to enable them to properly settle the estate and compute the estate tax due thereon. 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 extra-judicially pursuant to Section 91 (B), supra. CSDcTA Based on the aforestated justifiable reason, your request for an extension of thirty (30) days counted from August 1, 2008, which is the last day for filing of the estate tax return is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to September 1, 2008 pursuant to Section 90 (C) of the Tax Code of 1997. Moreover, your request for an extension of two (2) years within which to pay the estate tax due is also granted. 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 the late Flora-Valero Rodriguez to her 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. CHIScD Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service