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Learn about estate planning penalties and consequences for missing deadlines, improper execution, or tax violations. Understand common mistakes and their imp...
The IRS imposes penalties for late estate tax returns, typically starting at 5% of unpaid taxes per month, up to 25% maximum. You have 9 months from the date of death to file Form 706 (with a possible 6-month extension). Interest also accrues on unpaid amounts from the original due date. Even if no tax is owed, large estates above the $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Jan 2, 2026 threshold must still file to avoid penalties.