Form A-101 - Estate Tax Return (Page 4 of 4) in pdf

General Instructions for North Carolina Estate Tax Return

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A-101

North Carolina Department of Revenue

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Filing Requirement -- A North Carolina Estate Tax Return (Form A-101) is required to be filed by the personal

representative if a federal estate tax return (Form 706) is required to be filed with the Internal Revenue Service and the

decedent was domiciled in North Carolina at death or the decedent owned real property or tangible personal property located

in North Carolina. If the decedent was domiciled in North Carolina and all property is located in North Carolina, include

copies of pages 1, 2, and 3 of Federal Form 706. If decedent owned property outside of North Carolina or was not domiciled

in North Carolina, include a complete copy of Federal Form 706.

When and Where to File -- A North Carolina Estate Tax Return must be filed with the North Carolina Department of

Revenue at the same time the federal estate tax return is due which is nine months from the date of death. Form A-101 should

be mailed to the North Carolina Department of Revenue, Post Office Box 25000, Raleigh, North Carolina 27640-0100.

IMPORTANT: Copies of pages 1, 2, and 3 of Federal Form 706 must be attached to this return. If the decedent

owned real property in another state or was not domiciled in North Carolina, you must attach a complete copy of

Federal Form 706 to this return.

Paying the Tax -- Payment should include the tax plus any applicable penalties and interest. Include the name of the

estate on the payment. Attach payment to the return and mail to the above address. If a federal extension was requested

for paying the estate tax due under IRC Section 6161, attach supporting documentation of the IRS acceptance of the election

and fill in the applicable circle on page 1.

The personal representative may elect to make installment payments of North Carolina estate tax in the same manner

as elected for federal estate tax payments under section 6166 of the Internal Revenue Code. Acceleration of the federal

payments also accelerates the State payments. If the personal representative elects the same North Carolina installment

payments, attach supporting documentation of the IRS acceptance of the election and fill in the applicable circle on page

1. The personal representative is liable for the estate tax that is not paid within two years after it was due. This liability is

limited to the value of estate assets under the representative’s control.

Penalties and Interest -- If the return is not filed by the due date, a late filing penalty of five percent of the tax (maximum

25 percent) is due for each month, or part of a month, the return is late. If the full amount of tax is not paid by the due date,

a late payment penalty of ten percent of the unpaid tax (minimum $5.00) is due. Interest accrues from the original due date

and continues to accrue until the tax is paid. Contact the Department of Revenue for the current interest rate.

Extensions -- If the North Carolina Estate Tax Return cannot be filed by the due date, an extension of time for filing

the return and paying the tax may be granted. A request for an extension must be submitted in writing to the Department (at

the above address) on or before the due date of the return. In lieu of requesting an extension, fill in the applicable circle on

page 1 of Form A-101 if a federal extension was granted. Interest will accrue on any estate tax not paid by the original due

date of the return.

Uniform Valuation -- The personal representative is required to file a copy of the Federal Estate Tax Closing Letter with

the Department within six months of receipt. If changes are made to the federal estate tax return by the Internal Revenue

Service, the personal representative must report the changes to the State by filing an amended North Carolina Estate Tax

Return with a copy of the federal changes. If the amended return and payment of any additional tax due is not received by

the Department within six months of receipt of the report of federal changes, a penalty of five percent of the additional tax

for each month or part of a month that the return is late (minimum $5.00; maximum 25 percent) is due.

Form A-101 - Estate Tax Return Page 4