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

Line Instructions

(continued)

Determine the amount of Line 12 by

If you file your Minnesota estate tax return

You must use an account that is not associ-

entering the lesser of the following two

after the regular filing due date and you

ated with any foreign banks. If the routing

values:

don’t pay the tax as reported on your return

or account number is incorrect or is not

at the time you file, an additional 5 percent

(1) The amount of estate or inheritance tax

accepted by your financial institution, your

late payment penalty is due on the unpaid

paid to another state that is attributable to

refund will be sent to you in the form of a

tax.

paper check.

property with Minnesota situs held in the

pass-through entity; or

Late filing. If you file after the extended fil-

By completing line 20, you are authorizing

ing due date and you owe tax, you must pay

(2) The amount of tax due (before credits)

the department and your financial institu-

an additional penalty for filing late. The late

attributable to the property with Minnesota

tion to initiate electronic credit entries, and

filing penalty is 5 percent of the unpaid tax.

situs held in the pass-through entity.

if necessary, debit entries and adjustments

for any credits made in error.

Extended delinquency. An additional pen-

To determine the amount of tax attributable

alty is due if the return is not filed within 30

to property with Minnesota situs held

Signature of the Executor

days after the department sends a written

in the pass-through entity, the estate

demand. The penalty is 5 percent of the tax

The executor of the estate must sign the

must determine the amount the estate or

not paid prior to the demand.

completed Form M706. (M.S. 289A.10,

inheritance tax that was increased as a

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

subd. 1)

result of including the market value of the

If more than one executor was appointed by

property in the estate or treating the value

Line 17

the Probate Court or Probate Registrar, all

as a taxable inheritance to the recipient of

Interest

appointed executors must sign the form.

the property.

You must pay interest on any unpaid tax

and penalty from the regular due date until

If you wish to grant power of attorney to

The lesser of the two values is $0 when:

the total is paid. Interest accrues even if the

someone, complete the power of attorney

•

The decedent was a Minnesota resident;

deadline for filing the return or paying the

form on page 2 of Form M706 and check

•

The decedent was a nonresident and the

tax has been extended.

the box after your signature (see the next

estate tax return did not report property

section), or file Form REV184, Power of

The rate of interest may change from year

with Minnesota situs held in a pass-

Attorney, with the department.

to year. The interest rate for 2017 is 4 per-

through entity; or

cent. (M.S. 270C.40)

Power of Attorney

•

The decedent was a nonresident and the

To determine the interest to enter on line

If you are the executor or personal repre-

estate tax return did not pay any estate

17, complete Worksheet C on page 3 of

sentative of the decedent’s estate, you may

or inheritance tax to another state that is

Form M706. (M.S. 289A.55)

complete the section on page 2 of Form

attributable to property with Minnesota

M706 to designate another person to act on

situs held in a pass-through entity.

Line 18

your behalf before the department with re-

Lines 14–20

Amount Due

spect to the administration of the estate tax.

If the estate owes Minnesota estate tax,

By granting someone power of attorney,

Line 14

penalty or interest, you may pay the amount

you will no longer receive any correspon-

Payments Previously Made

electronically or by check. See Payment

dence from the department regarding the

If — before you filed this return — you

Options on page 2.

decedent’s estate; instead, your primary

paid Minnesota estate tax, enter the amount

appointee will receive all mailings concern-

you’ve already paid, including any exten-

Line 20

ing the estate.

sion payment made electronically or when

To Request Direct Deposit of Refund

filing with a payment voucher.

If you want the refund on line 19 to be

Despite the redirection of correspondence

directly deposited into the estate’s checking

described above, you will continue to

Line 16

or savings account, enter the routing and

receive any tax refunds, unless you submit

Penalties

account numbers. You must use an account

a Form REV184, Power of Attorney, direct-

The regular due date for filing the Min-

not associated with any foreign banks.

ing refunds to the appointee, as well.

nesota estate tax return and paying the total

estate tax owed is nine months after the de-

If you prefer, you may withhold specific

You can find your bank’s routing number and

cedent’s date of death. If the return is filed

powers from the appointee by checking the

account number on the bottom of your check.

after the extended filing due date or the tax

box below and listing the excluded powers

is paid after the regular payment due date,

in the space provided at the bottom of this

the estate is subject to penalties.

page. If you have questions regarding the

Power of Attorney election, contact the

Late payment. A penalty is due if you don’t

The routing number must have nine digits.

department by calling 651-556-3075.

pay the total Minnesota estate tax by the

The account number may contain up to 17

The department is prohibited by law from

regular payment due date. The penalty is 6

digits (both numbers and letters). Enter the

disclosing any information it may have

percent of the unpaid tax.

number and leave out any hyphens, spaces

in its records about the decedent’s estate

and symbols.

except to persons who have been granted

power of attorney and to the decedent’s

heirs, next of kin, or persons who hold an

interest in any of the decedent’s property.

Instructions For Form M706 - Estate Tax - Minnesota Department Of Revenue - 2017 Page 6

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