Request to Pay Estate tax Due Without Penalty

March 25, 1997 BIR RULING NO. 025-97 83 (b) (c) 84 106-96 25-97 Mr. Milton V. Mendoza 106 Arayat St. Muntinlupa City S i r : This refers to your letter dated January 17, 1997 requesting that you be allowed to pay without penalty the estate tax due on the transmission of the estate of your mother, Isabel V. Mendoza who died on November 2, 1995. You have represented that your inability to pay on time the corresponding estate tax return was brought about by the collation of the different properties of your parents which took almost two (2) years. It appears that your father died last October 1994 and his estate tax return filed only in August 1995 after collating all documents relating to his properties. Accordingly, since the investigation of your father's estate tax return was finalized by RDO No. 39 only last December 1996, you are filing your mother's estate tax return only this January 1997 since the two estate tax returns are connected with one another. In reply, please be informed that under Sections 83(b) and (c) of the Tax code, as amended, 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 84 of the same Code. In view thereof and considering that your failure to file on time your mother's estate tax return was due to causes beyond your control, this Office hereby allows you to file the same not later than March 31, 1997. Furthermore, your request for a waiver of surcharge and penalty on the estate tax due on the transmission of your mother is likewise granted. However, the estate shall be liable for the interest accrued up to the time the estate tax is paid. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue