Instructions For Form M706 - Estate Tax - Minnesota Department Of Revenue

General Information

(continued)

If you file your Minnesota estate tax return

If the estate needs more time to meet the

Assembling Required

after the regular filing due date — nine

regular filing due date, the department will

Information

months after the decedent’s date of death —

abate the penalties for late filing and late pay-

You must attach the following to Form

and you don’t pay the tax as reported on your

ment if the estate meets all of the following

M706 (documents may be double-sided):

return at the time you file, an additional 5

requirements:

percent late payment penalty will be assessed

• a completed copy of federal Form 706,

• Pay a reasonable estimate of the Min-

including all federal schedules (A through

on the unpaid tax.

nesota estate tax due by the payment due

U) that list an amount;

date. (A payment of at least 90 percent of

To avoid a late payment penalty, you must

• copies of the wills, property appraisals

the amount of Minnesota estate tax due as

pay at least 90 percent of the total Minnesota

or sales documents, trust agreements,

shown on the return is presumed to be a

estate tax by the regular due date and file

disclaimers, financial documents, etc.,

“reasonable estimate.”) Make the exten-

Form M706 and pay the remaining tax due

that verify balances and/or stock or bond

sion payment electronically or mail your

no later than 15 months after the decedent’s

prices;

check with a completed payment voucher

death. Make your extension payment elec-

• a copy of the death certificate;

(see Payment Options on page 2).

tronically or mail your check with a complet-

• a completed copy of the Minnesota Form

• File Form M706 and pay the remaining tax

ed payment voucher (see Payment Options

M706Q if the qualified small business or

within 15 months of the decedent’s date of

on page 2). If you made an extension pay-

farm property deduction is being elected;

death.

ment, include the amount you paid on line 12

and

Interest

of Form M706. (M.S. 289A.60, subd. 1)

• a completed copy of any Federal gift tax

Interest is calculated as simple interest and

Federal extension for paying tax. If you

returns filed by the decedent covering the

accrues on unpaid tax and penalties begin-

three years prior to the decedent’s date of

received an extension to pay federal estate

ning nine months from the decedent’s date

death.

tax or you have properly elected under IRC

of death. Interest will be charged even if

section 6166 to pay federal tax in install-

Other items you must attach to the return

the deadline for filing the return has been

ments, you will not be assessed a late pay-

include:

extended or the tax is being paid under an

ment penalty on any Minnesota estate tax not

• an itemized list of the gross values of

installment plan. The rate of interest may

paid by the regular due date. Attach to your

the decedent’s real and tangible personal

change from year to year. (M.S. 270C.40)

Minnesota M706 return a copy of the federal

property located outside Minnesota (if

approval for extending payment of tax.

The interest rate for 2017 is 4 percent.

a resident estate) or in Minnesota (if a

(M.S. 289A.30, subd. 2)

nonresident estate). Also, include a list of

Use of Information

Late filing. If you file the return after the

the schedule and item number where each

Information requested for filing estate tax

property is listed in the decedent’s federal

extended filing due date, a late filing penalty

is required under state law (M.S. 289A.10,

return.

will be assessed on the unpaid tax. The pen-

subd. 2).

alty is 5 percent of the unpaid tax.

• a completed payment voucher, if you’re

(M.S. 289A.60, subd. 2)

All information you enter on the return is

paying the tax due by check with the

private under state law. It cannot be given

Form M706.

Failing to file with intent to evade tax or fil-

to others without your consent except to

ing a false or fraudulent return. A penalty of

Preferred method. To attach, be sure to

the IRS, other Minnesota state agencies and

50 percent of the tax due is added to the tax

use binder clips, 3-ring binders or 2-prong

other state governments that are authorized

if you fail to file or file a false or fraudulent

fasteners. Do not use bindings, staples or

by law to receive the information and must

return with intent to evade payment of the

colored paper as separators.

treat the information as private.

Minnesota estate tax. This penalty is in ad-

Alternative method. Save all forms,

dition to any other penalties that may apply.

The decedent’s Social Security number is

documents and attachments using the PDF

(M.S. 289A.60, subd. 6)

required by M.S. 270C.306. Although your

format, and store on a CD. Label the CD

— the executor’s — Social Security number

Criminal penalties. If you willfully fail to

with the decedent’s name (last, first, middle

is requested on Form M706, you are not

file a return in order to evade paying the tax,

initial), date of death and Social Security

required to provide it. We ask for your Social

you could be charged with a gross misde-

number (last four digits). Submit the CD

Security number so the department can cor-

along with a printed copy of Form M706,

meanor. If you file a fraudulent return in

rectly identify you, because you are respon-

the first three pages of federal Form 706, the

order to evade paying all or part of the tax,

sible for paying the estate tax if the tax is not

death certificate and an index page listing

you could be charged with a felony.

paid from the estate’s assets.

the documents.

(M.S. 289A.63)

Where to file. Use one of the mailing labels

Abatement of Penalties

provided on page 7 to mail your Form M706

If circumstances beyond your control pre-

and all required attachments to the depart-

vented you from filing or paying your taxes

ment. If you choose not to use the label, mail

on time, you may request an abatement of

your forms to: Minnesota Estate Tax, Mail

penalties. To request an abatement, send a

Station 1315, St. Paul, MN 55146-1315.

letter to the department explaining the spe-

cific events or circumstances that prevented

Continued

you from filing and/or paying on time. Your

abatement request must be made within 60

days after the date you were notified that a

penalty has been imposed. (M.S. 270C.34)

Instructions For Form M706 - Estate Tax - Minnesota Department Of Revenue - 2017 Page 3

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