What is a reasonable cause for an extension of time to pay estate tax?

The rationale for selecting the scenario where liquid assets of a decedent are spread among several jurisdictions as a reasonable cause for an extension of time to pay estate tax lies in the complexities involved in the administration of the estate under those conditions. When liquid assets, such as cash or stocks, are distributed across different jurisdictions, the executor may face challenges in accessing those funds in a timely manner. Each jurisdiction may have its own procedures, legal requirements, and timeframes for transferring or liquidating assets, which could delay the estate's ability to settle tax obligations.

In cases where assets are dispersed across multiple locations, it can complicate the estate settlement process, potentially justifying the need for additional time to gather the necessary funds to pay any estate taxes due. This option acknowledges the practical difficulties that executors may encounter, making it a reasonable basis for requesting an extension.

Other scenarios, such as having all liquid assets in a single jurisdiction or holding non-liquid assets in a trust, may not provide the same level of justification for an extension. If all assets are in one place, the executor may have quicker access to those funds, and non-liquid assets in trusts may not necessarily affect immediate liquidity or the ability to pay estate taxes in a timely manner. Similarly, having