On October 14th, the IRS issued Revenue Procedure 2011-48, 2011-42 IRB 527 which provides guidance for filing protective claims for refund under Section 2053 of the Code. Protective claims are needed due to the uncertainty surrounding many of the expenses associated with the administration of an estate. Commonly, legal and accounting fees related to the estate will not be known before the due date of the estate return. If litigated, attorney fees may not even be known before the statute of limitations run. These protective claims are vital to ensure that heirs of decedents receive all allowable deductions.
IRS expects to issue a new Form PC to be filed for each protective claim beginning in 2012. For estates of decedents dying on or after October 20, 2009 (the effective date of the Revenue Procedure) and through the end of 2011, Form 842 must be used. Please contact us if you have any questions or if we can provide any assistance.