Rev Proc 2015-14: Simplified Portability Election
Learn about the relief under Rev. Proc. 2015-14, which allows certain estates to make a late portability election for a surviving spouse's benefit.
The Internal Revenue Service provides a simplified method under Revenue Procedure 2022-32 for estates to elect “portability” of the Deceased Spousal Unused Exclusion (DSUE) amount, even after the standard deadline has passed. Portability allows a surviving spouse to use any of their deceased spouse’s unused estate and gift tax exemption, effectively combining it with their own. This can substantially increase the amount of assets the surviving spouse can later give away or leave to heirs free of federal estate tax.
The standard deadline to elect portability is nine months after the date of death, which coincides with the due date for the federal estate tax return, Form 706. Many smaller estates are not required to file this return because their total value falls below the federal filing threshold. Consequently, executors of these estates often miss the opportunity to make the portability election. This simplified procedure provides a way to remedy that oversight without the complex process of requesting a private letter ruling from the IRS.
Eligibility for the Simplified Method
To qualify for this simplified method of obtaining an extension, the estate must meet several specific requirements. The primary condition is that the decedent must have been a U.S. citizen or resident on their date of death. The surviving spouse must also be a U.S. citizen or resident.
A central requirement is that the estate must not have been otherwise required to file a federal estate tax return. This is determined by the value of the gross estate and any adjusted taxable gifts made by the decedent. For example, in 2025, an estate tax return is generally required only if the gross estate exceeds $13.99 million. If the estate’s value is below this threshold, no return is mandated, making it eligible for this relief.
The executor must not have filed a Form 706 within the prescribed timeframe of nine months after the decedent’s death. The filing under this revenue procedure must be solely to elect portability. The estate cannot be using this method to report tax due or for any other purpose.
Finally, the relief must be sought within a specific window. Under Revenue Procedure 2022-32, the estate has until the fifth anniversary of the decedent’s death to file the return and make the election. This extended timeframe is the exclusive method for eligible estates to get this type of extension.
Required Documentation and Preparation
Successfully using the simplified method requires submitting a “complete and properly prepared” Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. Even though the estate is not filing to pay tax, the form must be filled out accurately to establish the basis for the portability election. This involves gathering information about the estate’s assets and liabilities.
Preparation requires valuing all of the decedent’s assets, which can include real estate, bank accounts, investment portfolios, and personal property. These assets must be reported on the appropriate schedules of Form 706. Any debts of the decedent, such as mortgages or loans, must also be documented and reported to arrive at the net value of the estate.
The DSUE amount is computed on Part 6 of Form 706. It is the lesser of the basic exclusion amount for the year of death or the decedent’s unused exclusion amount. This calculation confirms the amount of the tax exemption that will be transferred to the surviving spouse. The executor must show this computation on the return for the election to be valid.
A specific statement must be attached to the tax return. The executor must place a statement at the top of the filed Form 706 that reads: “FILED PURSUANT TO REV. PROC. 2022-32 TO ELECT PORTABILITY UNDER § 2010”. This exact wording is required by the IRS to signal that the return is being filed under the special relief provisions.
Filing the Portability Election
Once the Form 706 is complete and the required statement is attached, the final step is to submit the package to the IRS. For estates filing solely to elect portability, the return should be sent to the Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999.
The submission must be made on or before the fifth anniversary of the decedent’s death. The IRS considers the postmark date as the date of filing. Using certified mail with a return receipt is a common practice to ensure there is a record of when the return was sent and received by the IRS.
After the IRS receives the filing, it will review the Form 706 to ensure it is complete and that the estate meets all eligibility requirements. If everything is in order, the IRS will accept the return, and the portability election is considered valid. The IRS will not send a formal approval letter, as acceptance of the return effectuates the election.
With a successful election, the surviving spouse can then use the ported DSUE amount. This amount can be applied against any taxable gifts the surviving spouse makes during their lifetime or added to their own estate tax exemption at their death. This allows the couple to maximize their combined exemptions from federal estate and gift taxes.