Blogs

SJC reminds practitioners of the importance of estate tax deadlines

7/2/26

By: Will Covino and Nancy Reimer

CLIENT ALERT

Earlier this week in Estate of Walsh v. Commissioner of Revenue, 2026 WL 1870819 (June 30, 2026), the Massachusetts Supreme Judicial Court (the “SJC”) reaffirmed the importance of timely estate tax filings, extension requests, and careful documentation of client communications. While the estate in this case advanced several constitutional challenges to substantial interest and penalty assessments, the decision serves as a reminder that courts are unlikely to excuse years-long filing delays where the record reflects repeated requests for information, missed deadlines, and a failure to take basic steps to preserve rights.

The facts of this matter were unusually stark. The estate tax return was due in October 2012, but it was not filed until October 2019. No extension request was ever submitted during the seven-year delay. The executor sought an abatement based on reasonable cause, pointing to: (i) the death of the estate’s first accountant, (ii) delays by a subsequent accountant, and (iii) alleged incompetence by a third accountant. The Appellate Tax Board and, ultimately, the SJC were unpersuaded. The record reflected years of requests by the estate’s accountants for information that was never provided, and the executor himself acknowledged, “things just kind of fell by the wayside.” On those facts, the SJC agreed that the estate failed to establish reasonable cause for the delay and affirmed the denial of the requested abatement.

The decision also contains several useful reminders for practitioners. The SJC reaffirmed that statutory interest on unpaid taxes is remedial rather than punitive, reflecting compensation for the delayed payment of money rather than a constitutional “fine.” The court further rejected challenges to the penalty assessments and reiterated that tax-abatement proceedings are not subject to a jury trial.

For CPAs, accountants, tax professionals, and advisors, the principal lesson may be more practical than doctrinal: meet filing deadlines whenever possible, seek extensions when necessary, and maintain a clear written record of requests for information and client communications. In Walsh, that documentary record proved highly persuasive—and likely protected the accountants far more than the estate.

For more information on this topic, please contact Will Covino at william.covino@fmglaw.com, Nancy Reimer at nancy.reimer@fmglaw.com, or your local FMG relationship partner.

Information conveyed herein should not be construed as legal advice or represent any specific or binding policy or procedure of any organization. Information provided is for educational purposes only. These materials are written in a general format and not intended to be advice applicable to any specific circumstance. Legal opinions may vary when based on subtle factual distinctions. All rights reserved. No part of this presentation may be reproduced, published or posted without the written permission of Freeman Mathis & Gary, LLP.