Penalties

What happens if I don't file an estate tax return on time?

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.