Instructions For Rev-1647 Schedule M printable pdf download

Instructions for REV-1647 Schedule M

Future Interest Compromise

REV-1647 EX (02-15)

III. Explanation of

mine if a compromise determination

GENERAL INFORMATION

Compromise Offer

is appropriate and to evaluate the

Section 9116(e) of the Inheritance and

suggested compromise tax amount

PURPOSE OF SCHEDULE

Estate Tax Act of 1991 [72 P.S. §

submitted by the taxpayer. The depart-

Use REV-1647 Schedule M to report all

9116(e)] effective Oct. 3, 1991 author-

ment’s review may be based on actu-

future interests where the rate of tax

izes the Department of Revenue to

arial computation, subjective analysis,

which will be applicable when the

compromise the amount of tax payable

or a combination of both. If the facts

future interest vests in possession and

on a future interest when the rate

presented on REV-1647, Schedule M

enjoyment cannot be established with

of tax cannot be established with

do not reveal any extraordinary cir-

certainty.

cumstances, the determination of the

department will be made by an actuarial

NOTE: This schedule is applica-

FORM INSTRUCTIONS

formula without any subjective review.

ble only if a contingency makes

it impossible on the date of death of a

NOTE: If a contingency makes it

Estate of

decedent to determine the rate of tax

impossible on the date of death

Enter the complete name of the estate

which will apply when a future interest

to determine the rate of tax which will

as shown on REV-1500, Pennsylvania

vests in possession and enjoyment.

apply when a future interest vests and

Inheritance Tax Return.

A compromise request is not necessary

a compromise determination is not

if all potential beneficiaries are taxable

File Number

requested by the taxpayer, the depart-

at the same rate, and the only uncer-

Enter the file number of the estate as-

ment will assess tax at the highest

tainty is the identity of the ultimate

signed by the Register of Wills as

rates which would apply at all points of

beneficiary of a future interest.

shown on REV-1500, Pennsylvania In-

uncertainty in the chain of distribution.

heritance Tax Return.

REV-1647, Schedule M must accom-

NOTE: To request a compromise

pany the return if a compromise deter-

determination, the person re-

mination is requested. All information

GENERAL INSTRUCTIONS

sponsible for filing the return must fill

having a direct or indirect effect on the

in oval 5 “Future Interest Compromise”

compromise portion of the estate

IMPORTANT: This schedule is

of REV-1500.

should be presented with the return.

appropriate only for estates of

The Inheritance Tax Division, upon

decedent dying on or after Dec. 13,

The estate is encouraged to provide

written request, will provide the prob-

1982.

any information that is deemed to

ability factor in the case of an actual

have an impact on the possible future

I. Beneficiaries

benefit to the respective beneficiaries

decedent prior to the filing of the tax

List the name, relationship, date of

so that the department may make

return. Inquiries should be addressed

birth and age to nearest birthday

informed judgments. This may include,

to:

of each beneficiary indicated in the

but would not be limited to: the health

instrument which created the future

PA DEPARTMENT OF REVENUE

and lifestyle of the respective benefici-

interest compromise.

BUREAU OF INDIVIDUAL TAXES

aries, individual wealth of the benefici-

INHERITANCE TAX DIVISION

ary, average expenses, expected

II. Right of Withdrawal

PO BOX 280601

income, etc. The estate’s compromise

For decedents dying on or after July 1,

HARRISBURG, PA 17128-0601

offer should be supported by as much

1994, if a surviving spouse exercised

factual data and explanatory informa-

or intends to exercise a right of with-

The request for a probability factor

tion as possible.

drawal within nine months of the dece-

must identify the estate, date of death,

dent’s death, check the appropriate

file number, and must be accompanied

The Department of Revenue will review

block.

the information presented to deter-

by a copy of any relevant instrument.

Instructions For Rev-1647 Schedule M

Related Articles

Related forms

Related Categories