Once an estate exceeds federal thresholds, filing IRS Form 706—the United States Estate (and Generation-Skipping Transfer) Tax Return—is part of the process. For estates that also satisfy the New York State Estate Tax Return requirements, both federal and state filings might be necessary.
Typical IRS Processing Timeline
It should be recognized that the IRS generally takes six to nine months to process Form 706. However, specific variables may influence this timeline as follows:
- Completeness and accuracy of submitted documents
- Whether the IRS initiates an estate tax audit
- Delays in obtaining asset appraisals or supplemental information
- Use of extensions for filing or payments
A properly prepared return—accompanied by the right documentation—can have a lowering impact on the chance of delays.
What to Expect During Processing
During the processing window, the IRS might issue notices or request clarification on reported figures. This is typical and not necessarily a sign of an audit. Executors should perform professional documentation practices and fully align with the instructions presented on Form 706 closely.
It would also be wise to keep the estate tax return checklist NY in mind in case of filing both federal and New York forms. A single missing document has the potential to slow things down on either front.
NY Considerations After IRS Processing
Even though New York estate tax thresholds have a strong distinction from the federal level, IRS timelines can indirectly influence the state-level proceedings—particularly when coordinating the completion of both returns.
Final Consideration
Executors should not wait for the IRS to finalize their review before addressing NY estate tax filing requirements. New York has its own deadlines and processes. In general, it necessitates Form ET-706 to be filed within nine months of the decedent’s death. If you need any assistance, Dimov NYC CPA is ready to present professional aid. Contact us today for financial clarity and full compliance.
