by Margot Edwards
In Estate of Minnie Lynn Sower, 149 T.C. No. 11 (Sept. 11, 2017), the Tax Court held that the IRS can reopen the portability return filed for a predeceased spouse as part of its examination of the estate tax return filed for the second spouse to die.
In this case, Frank Sower passed away in 2012 and his estate filed an estate tax return electing portability of deceased spousal unused exclusion (DSUE). Frank’s estate received a letter from the IRS stating that it had accepted his return as filed. Minnie Sower later passed away and her estate filed an estate tax return claiming the DSUE reported by Frank’s estate. As part of its examination of Minnie’s return, the IRS reopened Frank’s return and reduced the DSUE. Read more