Avoiding estate tax return claims

Late-filing penalties for estate tax returns are often used as grounds for professional liability claims against CPAs, in large part because of their cost: Given the steeply progressive tax rates for estate tax and rapidly accruing penalties, they often exceed $300,000. Here are some tips for avoiding penalties….

There are several factors that may cause a preparer to miss the deadline, the most common of which is the irregular filing due date for estate tax returns—it comes nine months after the decedent’s date of death, rather than, for example, April 15 or October 15.

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