Extension of time to pay estate tax

When the Commissioner finds that the payment of the estate tax or of any part thereof would impose 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 deficiency assessment shall be suspended for the period of any such extension.

Judicial settlement of estates is given a better treatment in this case (5-year extension). On the other hand, estate tax cases involving extrajudicial settlement are only given 2 years as extension.

Where the request for extension is by reason of negligence, intentional disregard of rules and regulations, or fraud on the part of the taxpayer, NO EXTENSION will be granted by the Commissioner.

If an extension is granted, the Commissioner or his duly authorized representative 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.

Any amount paid after the statutory due date of the tax, but within the extension period, shall be subject to interest but NOT to surcharge. (Section 9(5), Revenue Regulation No. 12-2018. January 25, 2018)