Pennsylvania Estate Tax General Information
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1REV-229 EX(9-07)
Commonwealth of Pennsylvania
PENNSYLVANIA
Department of Revenue
Bureau of Individual Taxes
ESTATE TAX
Inheritance Tax Division
PO Box 280601
GENERAL INFORMATION
Harrisburg PA 17128-0601
Important:
1.
For decedents dying on or after January 1, 2005, the Internal Revenue Service revised the Federal Estate Tax Return, IRS Form
706, by eliminating the Federal Credit for State Death Taxes, and replacing it with a deduction for death taxes actually paid to the states. As the
Federal Credit for State Death Taxes was discontinued, there no longer is a basis for the Pennsylvania Estate Tax. However, the Estate Tax
provisions of Pennsylvania’s Inheritance and Estate Tax Act (Section 2117 of the Act, 72 P.S. §9117) remain in effect and provide that any estate
required to file an IRS Form 706 must also file a copy of that form, as well as any final communications from the Internal Revenue Service, with
the Register of Wills for the county that granted letters testamentary or administration to the estate. If no letters were granted in Pennsylvania,
the IRS Form 706 and final IRS communications should be filed directly with the Department of Revenue at the following address: Pennsylvania
Department of Revenue, Inheritance Tax Division, PO Box 280601, Harrisburg, PA 17128-0601.
2.
As of January 1, 2007, the State Death Tax Credit is scheduled to be reinstated on the Federal Estate Tax Return, IRS Form 706, for decedents
dying on or after January 1, 2011. You are advised to contact the Internal Revenue Service for further updates.
Who Must File:
3.
The personal representative (executor or administrator) appointed by the Register of Wills or the fiduciary charged with the
duty of filing a Federal Estate Tax Return (IRS Form 706).
Place for Filing:
4.
A copy of the Federal Estate Tax Return must be filed with the Register of Wills in the county that granted letters. If no
letters were granted in Pennsylvania, the return should be filed directly with the Department.
Time for Filing:
5.
The return is due within one month of filing the Federal Estate Tax Return. The Estate Tax becomes delinquent nine months
after the date of death of the decedent. No extensions are available for payment of Estate Tax.
Place of Payment:
6.
Estate Taxes are payable to the Register of Wills for the county that granted the letters. If no letters were granted in
Pennsylvania, payment should be made directly to the Department of Revenue. A discount is not available for payment of Estate Tax within
three months of the decedent’s death.
Filing of Final Federal Closing Letter:
7.
A copy of the final communication from the IRS must be filed within 30 days of when it is received
by the estate, with the person with whom the copy of the original Federal Estate Tax Return was filed.
Payment of Estate Tax Due as Result of Final Federal Closing Letter:
8.
Any Estate Tax due as a result of the Federal Closing Letter
shall be paid to the person with whom the original Pennsylvania Estate Tax was required to be paid. The tax shall become delinquent one month
after the estate’s receipt of the final Federal Closing Letter.
Calculation of Estate Tax (Resident Decedent):
9.
1.
With no non-Pennsylvania real property
PA Estate Tax = Maximum Federal Credit for State Death Taxes - PA Inheritance Tax Actually Paid.
2.
With non-Pennsylvania real property
=
PA Estate Tax
Maximum Federal Credit for State Death Taxes - [greater of a or b below] - PA Inheritance Tax Actually Paid.
a.
Death taxes actually paid to other states (not slack tax or estate tax); or
b.
Value of non-PA real property
included in gross Federal Estate X Maximum Federal Credit for State Death Taxes.
Value of all property included in
Gross Federal Estate (line 1 of IRS Form 706)
Calculation of Estate Tax (Nonresident with real property in Pennsylvania):
10.
Value of PA real and tangible property
=
PA Estate Tax
Maximum Federal Credit for State Death Taxes X included in gross Federal Estate - PA Inheritance Tax Actually Paid.
Value of all property included in Gross
Federal Estate (line 1 of IRS Form 706)
Estate Tax Allocation Between Tax Due As A Result Of Federal IRS Form 706 And Tax Due As A Result Of Federal Closing
11.
Letter:
The Department will issue two distinct Notices of Assessment of Estate Tax for each estate that files a Federal IRS Form 706. The
notices are designated by Account Control Numbers ACN 201 and ACN 202.
a.
ACN 201 reflects the Pennsylvania Estate Tax due as a result of the filing of a Federal Estate Tax Return, IRS Form 706. Interest begins
to accrue nine months and one day after the decedent’s date of death.
b.
ACN 202 reflects the Pennsylvania Estate Tax due as a result of the issuing by the IRS of the Federal Closing Letter. Interest begins
to accrue one month and one day after the date of issue of the Federal Closing Letter.
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