Instructions For Rev-1647 Schedule M - 2013 printable pdf download

Instructions for REV-1647 Schedule M

Future Interest Compromise

compromise the amount of tax payable

an actuarial formula without any subjec-

GENERAL INFORMATION

on a future interest when the rate of tax

tive review.

cannot be established with certainty.

PURPOSE OF SCHEDULE

NOTE: If a contingency makes it

Use REV-1647 Schedule M to report

NOTE: This schedule is applica-

impossible on the date of death

all future interests where the rate of tax

ble only if a contingency makes it

to determine the rate of tax which will

which will be applicable when the

impossible on the date of death of a

apply when a future interest vests and

future interest vests in possession

decedent to determine the rate of tax

a compromise determination is not re-

and enjoyment cannot be established

which will apply when a future interest

quested by the taxpayer, the depart-

with certainty.

vests in possession and enjoyment. A

ment will assess tax at the highest rates

compromise request is not necessary if

which would apply at all points of uncer-

all potential beneficiaries are taxable at

tainty in the chain of distribution.

FORM INSTRUCTIONS

the same rate, and the only uncertainty

NOTE: To request a compromise

is the identity of the ultimate beneficiary

Estate of

determination, the person re-

of a future interest.

Enter the complete name of the estate

sponsible for filing the return must fill in

as shown on REV-1500, Pennsylvania

Schedule M must accompany the return

Oval 5 “Future Interest Compromise”

Inheritance Tax Return.

if a compromise determination is re-

of REV-1500.

quested. All information having a direct

File Number

The Inheritance Tax Division, upon writ-

Enter the file number of the estate as-

or indirect effect on the compromise

signed by the Register of Wills as

ten request, will provide the probability

portion of the estate should be pre-

shown on REV-1500, Pennsylvania In-

sented with the return.

factor in the case of an actual decedent

heritance Tax Return.

prior to the filing of the tax return. In-

The estate is encouraged to provide

quiries should be addressed to:

any information that is deemed to have

GENERAL INSTRUCTIONS

an impact on the possible future benefit

PA DEPARTMENT OF REVENUE

to the respective beneficiaries so that

BUREAU OF INDIVIDUAL TAXES

IMPORTANT: This schedule is

the department may make informed

INHERITANCE TAX DIVISION

appropriate only for estates of

judgments. This may include, but would

PO BOX 280601

decedent dying after Dec. 12, 1982.

not be limited to: the health and lifestyle

HARRISBURG, PA 17128-0601

I. Beneficiaries

of the respective beneficiaries, individ-

List the name, relationship, date of

The request for a probability factor

ual wealth of the beneficiary, average

birth and age to nearest birthday of

must identify the estate, date of death,

expenses, expected income, etc. The

each beneficiary indicated in the

bureau file number, and must be

estate’s compromise offer should be

instrument which created the future

accompanied by a copy of any

supported by as much factual data and

interest compromise.

relevant instrument.

explanatory information as possible.

II. Right of Withdrawal

When the “Notice of Inheritance Tax Ap-

The Department of Revenue will review

For decedents dying on or after July 1,

praisement, Allowance or Disallowance

the information presented to determine

1994, if a surviving spouse exercised or

of Deductions and Assessment of Tax”

if a compromise determination is appro-

intends to exercise a right of withdrawal

is received, the taxpayer may, within 60

priate and to evaluate the suggested

within nine months of the decedent’s

days of the date the assessment is re-

compromise tax amount submitted by

death, check the appropriate block.

ceived, exercise the statutory right of

the taxpayer. The department’s review

appeal provided in 72 P.S. § 9186(b).

III. Explanation of

may be based on actuarial computa-

Any liability not paid in full or under ap-

Compromise Offer

tion, subjective analysis, or a combina-

peal will be referred for collection at the

tion of both. If the facts presented on

Section 2116(e) of the Inheritance and

expiration of the appeal period or nine

Estate Tax Act of 1991 [72 P.S. §

Schedule M do not reveal any extraor-

months after the date of death,

2116(e)] effective Oct. 3, 1991 author-

dinary circumstances, the determina-

izes the Department of Revenue to

tion of the department will be made by

whichever is later.

Instructions For Rev-1647 Schedule M - 2013

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