A law firm is preparing to file a federal estate tax return (form 706). The estate’s executor has elected to use the alternate valuation. The partner in charge of filing this return is not certain about all of the ramifications of having chosen to use this alternate date.
Go to the website www.irs.gov. do a search for “Instruction 706” to get the instruction information published by the IRS for federal estate taxes.
Read the information provided, and write a memo to the partner outlining the information the IRS provides as to the significance of the alternate valuation date.
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