My brother passed away in May 11, 2009. His trust left his estate to my sister and I. He and all of us are residents of California. I am having his estate tax prepared but there is some paperwork dealing with mothers LLC werein he was not yet removed off the LLC yet. His estate was less than 3.5 million (he had 2 million in house, and CD's etc. and 1 million in the LLC). If we are past due on the taxes but don't owe taxes as we are under the 3.5 million that one can have for 2009 is there any worry if we can't get the 2009 final tax and estate tax forms in by end of 2010? Will an extension OK?
Thank you,
RH

RH:

If the estate is below the minimum that requires an estate return, then NO estate return is required.

However, if the estate generated income while being probated, then a Form 1041 needs to be filed to report that income and pay the required taxes. You are PAST the extension point for such a return, so contact a tax professional with estate tax experience and get it done!