Instructions For Rev-1647 Schedule M - Future Interest Compromise printable pdf download

Instructions for Rev-1647 Schedule M

Future Interest Compromise

of tax payable on a future interest

General Information

when the rate of tax cannot be

Note. If a contingency

established with certainty.

makes it impossible on the

date of death to determine

Purpose of Schedule

Note. This schedule is

the rate of tax which will apply when

Use Rev-1647 Schedule M is report

applicable only if a

a future interest vests and a

all future interests where the rate of

contingency makes it

compromise determination is not

tax which will be applicable when the

impossible on the date of death of a

requested by the taxpayer, the

future interest vests in possession

decedent to determine the rate of tax

Department will assess tax at the

and enjoyment cannot be established

which will apply when a future

highest rates which would apply at all

with certainty.

interest vests in possession and

points of uncertainty in the chain of

enjoyment. A compromise request is

distribution.

not necessary if all potential

Form Instructions

beneficiaries are taxable at the same

rate, and the only uncertainty is the

Note. To request a

Estate of

identity of the ultimate beneficiary of

compromise determination,

a future interest.

the person responsible for

Enter the complete name of the

filing the return must fill in oval 5

estate as shown on the REV-1500,

Schedule M must accompany the

“Future Interest Compromise” of the

Pennsylvania Inheritance Tax Return.

return if a compromise determination

REV-1500.

is requested. All information having a

File Number

direct or indirect effect on the

Enter the file number of the estate

compromise portion of the estate

assigned by the Register of Wills as

should be presented with the return.

The Inheritance Tax Division, upon

shown on the REV-1500,

The estate is encouraged to

written request, will provide the

Pennsylvania Inheritance Tax Return.

provide any information that is

probability factor in the case of an

deemed to have an impact on the

actual decedent prior to the filing of

possible future benefit to the

the tax return. Inquiries should be

General Instructions

respective beneficiaries so that the

addressed to:

Department may make informed

judgments. This may include, but

PA DEPARTMENT OF REVENUE

would not be limited to: the health

Important. This Schedule

BUREAU OF INDIVIDUAL TAXES

and lifestyle of the respective

is appropriate only for

INHERITANCE TAX DIVISION

beneficiaries, individual wealth of the

estates of decedent dying

PO BOX 280601

beneficiary, average expenses,

after December 12, 1982.

HARRISBURG, PA 17128-0601

expected income, etc. The estate’s

compromise offer should be

I Beneficiaries

The request for a probability factor

supported by as much factual data

must identify the estate, date of

List the name, relationship, date of

and explanatory information as

death, bureau file number, and must

birth and age to nearest birthday of

possible.

be accompanied by a copy of any

each beneficiary indicated in the

The Department of Revenue will

relevant instrument.

instrument which created the future

review the information presented to

interest compromise.

determine if a compromise

determination is appropriate and to

II Right of Withdrawal

When the “Notice of Inheritance

evaluate the suggested compromise

Tax Appraisement, Allowance or

For decedents dying on or after July

tax amount submitted by the

Disallowance of Deductions and

1, 1994, if a surviving spouse

taxpayer. The Department’s review

Assessment of Tax” is received, the

exercised or intends to exercise a

may be based on actuarial

taxpayer may, within 60 days of the

right of withdrawal within nine

computation, subjective analysis, or

date the assessment is received,

months of the decedent’s death,

a combination of both. If the facts

exercise the statutory right of appeal

check the appropriate block.

presented on Schedule M do not

provided in 72 P.S. § 9186(b). Any

reveal any extraordinary

liability not paid in full or under

III Explanation of

circumstances, the determination of

appeal will be referred for collection

Compromise Offer

the Department will be made by an

at the expiration of the appeal period

Section 9116(e) of the Inheritance

actuarial formula without any

or nine months after the date of

and Estate Tax Act of 1991 [72 P.S.

subjective review.

death, whichever is later.

§ 9116(e)] effective October 3, 1991

authorizes the Department of

Revenue to compromise the amount

Instructions For Rev-1647 Schedule M - Future Interest Compromise

Related Articles

Related forms

Related Categories