Instructions For Form Mn-706 - Minnesota Estate Tax (Page 6 of 6) in pdf

All estates — Lines 14-20

Line 18

Attach to Form MN-706 —

Amount owed

• a copy of the signed federal Form

Line 14

Add lines 15, 16 and 17. Fill in the total

706 filed by the estate with the

Payments previously made

on line 18. This is the unpaid amount of

IRS,

Minnesota estate tax, penalty and

If — before you filed this return — you

• copies of all federal schedules (A

interest owed by the decedent’s estate.

made Minnesota estate tax payments, fill

through U), and

in the amount you have already paid,

Make your check or money order

• a copy of the death certificate.

including any extension payment you

payable to: Minnesota Department of

made when filing a PV86 payment

Do not attach copies of the appraisals,

Revenue. When paying by check, you

voucher.

trust agreements, wills, etc., that you

must complete the PV47 payment

attached to the estate’s federal Form 706.

voucher and attach it to your check.

Line 16

Penalties

Line 19

The regular due date for filing the

Refund amount

Minnesota return and paying the total

If the total amount of payments on line

estate tax due is nine months after the

14 is more than the sum of estate tax

decedent’s date of death. If the return is

(line 8 or line 13), penalty (line 16), and

Power of Attorney

filed late, or the tax is paid late, the

interest (line 17), the decedent’s estate is

estate is subject to penalties.

due a refund.

If you are the executor or personal

Late payment. Unless the tax is being

representative of the decedent’s estate,

Subtract lines 8, 13, 16 and 17 from line

paid in installments, a late payment

you may designate another person to act

14 and fill in the result on line 19. This is

penalty is assessed on any unpaid tax if

on your behalf or perform any act you

the amount which will be refunded to

all or part of the estate tax is paid after

can perform with respect to the estate tax

the decedent’s estate.

the due date.

on the decedent’s estate when dealing

with the Department of Revenue. This is

Line 20

The penalty is 3 percent of the amount of

done by granting power of attorney to

tax not paid on time if you send it in

Installment payments

the person.

within 30 days of the due date. The

If you are paying the federal estate tax in

penalty increases by 3 percent per 30-day

The department is prohibited by law

installments and you wish to pay the

period (or part of a 30-day period) that

from disclosing any information it may

Minnesota estate tax in installments,

your payment is late, up to 24 percent.

have in its records about the decedent’s

check the box on line 20.

estate except to persons who have been

Late filing. A late filing penalty is in

You must attach to Form MN-706 a copy

granted power of attorney and to the

addition to any late payment penalty

of the document you received from the

decedent’s heirs, next of kin or person

which may apply. The penalty for

IRS approving your federal installment

who holds an interest in any of the

failing to file on time is 3 percent of the

payment plan.

decedent’s property.

amount of tax not paid on time if you

send it in within 30 days of the due date.

If you wish, you may fill out the form on

Signature of the executor

The penalty increases by 5 percent per

the back of Form MN-706 to grant power

The executor of the estate must sign the

30-day period (or part of a 30-day

of attorney to someone. The Attorney-

completed Form MN-706.

period) that your payment is late, up to

in-Fact section of the form contains

(M.S. 289A.10, subd. 1)

23 percent.

language spelling out certain powers

that may be selected for a person holding

If more than one executor was appointed

The maximum penalty for filing late and

power of attorney to have for purposes

by the Probate Court or Probate Regis-

paying late is 38 percent.

of dealing with the department. You

trar, all appointed executors must sign

(M.S. 289A.60)

may select some or all of the language in

the form.

this section of the form to assign powers

Line 17

If you wish to grant power of attorney to

to the person to whom you are granting

Interest

someone, you must complete the power

power of attorney, or write other

You must pay interest on any tax and

of attorney form on the back of Form

language at the bottom of the form to

penalty that is not paid by the regular

MN-706 and check the box after your

grant whatever powers you wish.

due date (nine months after the

signature. For details on granting power

decedent’s date of death). Interest

of attorney, see the right column.

accrues even if the deadline for filing the

return has been extended or the estate

tax is being paid in installments.

To determine the amount of interest to

fill in on line 17, fill out the worksheet on

the back of Form MN-706 or, if you’re

paying an installment, see the section

Paying tax in installments on page 3.

Instructions For Form Mn-706 - Minnesota Estate Tax Page 6

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