Form It-Estate - Estate Tax Return - 2017 (Page 2 of 11) in pdf

Estate Tax Return 2017 Instructions

This form is to be used only for the estate of a resident decedent having a date of death on or after January 1, 2017, but before January 1, 2018.

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The NJ Estate Tax is in addition to the NJ Inheritance Tax. A tax is imposed upon the estate of every resident decedent having a date of death on or after

January 1, 2017, but before January 1, 2018, whose taxable estate exceeds $2 million as determined pursuant to section 2051 of the Federal Internal

Revenue Code (26 U.S.C. s.2051) in effect on January 1, 2017.

Filing Requirements

For decedents dying on or after January 1, 2017, but before January 1, 2018, a New Jersey estate tax return must be filed if the decedent’s gross estate

exceeds $2 million as determined in accordance with the provisions of the Internal Revenue Code in effect on January 1, 2017.

Completing the Return

Mailing Address – Complete the Mailing Address section with the name and address of the person or firm that will be authorized to receive all

communications from the Division of Taxation. Note: The Division is required to deal only with this person or firm, unless the estate representative has

also completed Form M-5008-R Appointment of Taxpayer Representative.

Complete Federal Form 706* including all schedules and supporting documents. This must be completed even if you were not required to file with the

federal Internal Revenue Service (IRS). If you are required to file, or did file, Form 706 with the IRS, submit a copy of what was actually filed. NOTE: Be

sure to answer question 2(c) on Schedule M to avoid processing delays.

*Refers to the (Rev. August 2013) version of Form 706.

Complete lines 1 through 13 of the 2017 New Jersey Estate Tax Return.

Instructions for Line 3b. State Death Tax Deduction for Other States: Enter the amount of any estate, inheritance, legacy, or succession taxes actually

paid to any other State (Do NOT include New Jersey) or the District of Columbia on any property included in the gross estate on Line 1 of this return.

Note to Line 4: The website estate tax calculator incorporates a credit of $99,600, which is equal to the tax due on the $2 million exclusion amount for

2017. It also performs the circular calculation created by application of the New Jersey portion of the federal State Death Tax Deduction to the taxable

estate, in accordance with Section 2058 of the Federal Internal Revenue Code.

Waiver Request Schedules: Complete Schedules E-4 thru E-7 to request any necessary waivers for New Jersey assets. (Note: The schedules of the

706 are not sufficient for waiver purposes.) Only list those assets which require waivers. See instructions on each schedule for guidance.

Required Documents

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A copy of any communication from the IRS regarding the Estate Tax.

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A complete, legible copy of the decedent’s Last Will and Testament and all codicils thereto,

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A copy of any trust agreements to which the decedent was a party, and

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A copy of the decedent’s last full-year federal income tax return filed prior to death.

Interest Rates and Payment Due Date

Interest accrues at the rate of 10% per annum on any NJ Estate Tax not paid within nine months of the decedent's date of death. If an extension of time to

file the federal estate tax return is granted, the Director may reduce interest to 6% per annum until the earlier of the expiration of the federal extension or

the date of the filing of the federal return with the IRS.

Requests for an interest reduction must be accompanied by a copy of the request made to the Internal Revenue Service for an extension to file the federal

estate tax return along with a copy of any required approval and verification as to the date on which the federal estate tax return was actually filed.

Payments are first applied to the interest, if any, which has accrued to the date of payment.

Payments on Account / Refund Requests

Payments on account may be made at any time to avoid further accrual of interest (on the amount paid). In any case where the amount paid on account

for New Jersey Inheritance or Estate taxes exceeds the amount of tax due after the final assessment has been made, the overpaid amount will be refunded

in the due course of business.

All protective refund claims should be made on Form IT-PRC within three years from the date of payment. A protective refund claim is a claim filed to protect

a taxpayer’s right to a potential refund based on a contingent event for which the statute of limitations is about to expire. A protective claim is usually based

on contingencies such as pending litigation or an ongoing federal estate tax audit.

Lien

For resident decedents dying after December 31, 2001, the NJ Estate Tax remains a lien on all property of the decedent as of the date of death until paid.

No property may be transferred without the written consent of the Director of the Division of Taxation.

Form It-Estate - Estate Tax Return - 2017 Page 2

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