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HomeMy WebLinkAbout10-30-79 REV. 19 (8-77) COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF FIELD OPERATIONS Post Office Box 1970 Harrisburg, Pennsylvania 17105 Mr. Harold B. McLane Acting Register of Wills Cumberland County Court House Carlisle, PA 17013 IN YOUR REPLY PLEASE REFER TO October 30, 1979 Re: Estate of File No: COtmty of Date of Death: Susan R. Jones 21-78-0271 Cunber1and 5/15/78 Dear McLane: Enclosed you will find copy of a Protest and Decision of the Board iOf Appeals, concerning the estate of the above named decedent. The Board 0 f Appeals sustained the Petitioner's objection . Accordingly, you are authorized to amend the record of this estate to confonn with the Order of the Board. Very truly yours, ~.~~ ~ LL~ C--1. c:r6:c<! c;:::::::-.. _v.-c-~ Robert L. Schrift Section Supervisor Inheritance Tax Control Bureau of Field Operations 717-7878213 RLS: sra enclosures .. COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BOARD OF APPEALS P.O. BOX 1874 HARRISBURG. PENNSYLVANIA 17105 REV-363 (6-78) 11-1 m: ES'l'A'2!t OF' * aoard Docket No. Q08937 INH Su...n R. Jonel! File No. 21-18-0271 P1:TI"I~:lR t County of Cumberland Grace L. Brenizer P.O. Box 405 Carll.1e, Pennay1vanla 17013 DAte of Death. MIly 15, 197@ Oat.. of Appraiaement * March B, 1979 REPUSEN'l' A'1"IVE . Dat.e Prot..at 'lle<h July 20, 1979 Georq_ M. Uouclil:, Ellqulr. National Bank Building ~'ech.nlc.bur9, Pennsylvania 170S5 . Exemlner. Lily A. oeff1er OecleiQtl Mail1nv Date. Gel' :-; ,t \919 F~CTS 1. Petitioner, Graoe L. arc.n1zer, i. becutrix tor the estate of Su.ean F. .1one.. 2. '!'he deee4ent died on May 15, 1978. An inheritance tax ret.urn wae tl1ec.1 with t.he Oepart.ment. ..nd an appraisement. vae filed in the' Offioe ot the negleter of will. of CUmberland County on ~.rch ~, 1979. A Statement of Dehts and Deductions filed in the Office of the Reqitlter of Wi.ll. of CUm,.'>erland County on }larch 14, 1979, was approved on ..Tuly 11, 1979. At. that tiae, the 'Pe4',Jlster of Wills of C\1IlIberlan6 CQunty disallowed a credit tor paYMent of $14,000 to the decedent during her lif.t1~ for . certain tract ot land. 3. Petitioner'. protest concerns the disallowance of the $14,000 credit tor payment. 4. A helJrinq vae held at the Board of Appeals, 10th Floor, gtraW~rTY SquaT., Harr1.burCJ, Pennsylvania, .t 2.00 p.m. Those pre- ~ent were GeorgfJI M. Hauch, Eequire and Grace L. Brenizer far the Petitioner and Lily ~. o.ff1e1" for the Commonwealth. ~.~ -- --..--- - ~ _. - - :-- ,.....~ .--- .;--- .~ .-..- .~ ,..---~.- -. - ,..-. :'"-- ~ - .- --- _'_reo SUMn R. Jeme. 8oal'd Docll:et No. 908937 -2- 5. "!be evid4moe subdtted by the Petitioner con.1fts of the followil'l9 J Dece4estt '. checkbook and certain cancelled check. witten by th. decedent. 6. The ev1daee llUhMitted by t:he Petitioner ..tabli.h.. the followin9 J The ... of $14,000 was depoa1.ted 1n the _count of SuNn It. Jone. ClCl Au9UR 17, 1977. 1'.1:0lIl tlte aforeMentioned 88m, $11,351.50 va. ueed to pul'- ChaM _d .taprove a IlObU. bo.e. '!'he hIWlininq $2,648.50 wa. left in the aecoWlt aftd .a int.r- m1nqlea with the other tunds. DISCUSSION Petitioner contend a that the $14,000 credit tor payment liated on the stat._eAt of Debt. and Deduet.10ns approved Oft July 11, 1979, uoee trOll An oral a<p:'ee.'lent of ale between the decedent. and her dauuhter wherein the decedent. 891'e.4 tcconv.,. to her t'lau9hter 4.02 acr.. of farlll land 1ft return for $14,000 in cash. Petitioner contends that a tontal conveyance could no't take place at the tillle of the Af,Jr.... 'lHDt. because ~. Sub-divi8ion P1al\ h4d to be AppJ:'O'1ed before" deed could be i.Red. CoI'lnquently, at. the ti.. of t:he decedent'. .ath, the decedent appeared to own both 'the lMd and ctu,Jh. '1'heretore, when preparin,g the appraillellaeftt. for decedent.'. .atIlt.., ~h. estate repr...ntat.1 ve U8t..~ the 4.02 acre. at. a value ot $14,000 wit.h an otf..t.t.inlJ '-duc:t:ion of $14,000 Oft 1:he 8t.Ilt.e1Mftt of Debt. end Deduction.. The bulJl: ot the $14,000 given to Mr.. Jones in payaent for the 4.02 acr.. by her &tu9hter ..... inveet.ed iJ\ " mobUe ho1Ie and vas included 01\ Schedule " of the Herah 8, 1979 appra18eDlent.. 'rbe remainder of the $14,000 &Jean. R. Jones 'Bolard Docket: No. 908937 -3- wille left: 1n 'the decedent'. Clheeklnq account: ad was inoluded on Schedule B of the March a, 1979 appraiaelltlmt:. '!'he 4.02 acree UtIIt:ed on Schedule A have lIinae been formally conveyed to Mr. and Mr.. JMvard Ha.rry. In aocordance w1 t:h the afor_ent:ioned facrts 'the $14,000 oredi t: tor payment: found on 'the St.at..ent of Debt:s and Dec.'tucrtlone approved an July 11, 1979 should be allowed. O:RDER OF "!.'HE BOAJItD Accordingly, it i. hereby, Ordered that: t:he prote8t is 8UR'tain~d. The $14,000 credit: for payment to Bet:t:y A. and Edward F. Harry listed 01'1 the St:at.elllent: of Debt:8 and Deduct:ions approved on July 11, 1979, .h~uld be allowed. """'~J: BOAR%) OPAPPBALS t i .' f // r I ~r blph .,< ASi5195-.7 Ida 7' . .." . "'.> ../r>>~:II;.,.t/ .."'.../.... e . .,' '.J..' .' ',' _:', '[ ~ I" ... _/} TiRO'thy J. Harney, ( ~ ,. " QJt:~ \ G.~9.rqe__~ Houck I Esquire I ,. National Bank Buildin.g, ~'--'-~-"''''.--, .. .-- iVle ch an l c ~.l;lU.r.g , Penns"yr;ania, 17055. Phone (717) 766-0209. . (,' A r; ".~ ;';'!/ . ~~ .0,tIYr0 --......------- '- _ ,,- ..... --.---,-. .-.... ,.-, _.,_'... h_" ....-~ - ,. ""', ,.r''''' (';'1 r-1 .. \ n, July 18, 1979 q I , ._..,/...."...., , --r l'-J t'T' '.....--. J) ;1 1~~.,II.:..- _..;.;;a. . -- A~ ('] I At:. -6)-;.1.:' () Co~monwealth of Pennsylvania, Department of Revenue, Bureau of County COllections, Inheritance Tax Divisions, Harrisburg, Pennsylvania, 17101. ~#~....... ""'. no ,. ..~, ,lI\",. 'Br' ,,!iVENUE O Dr:::.,;, ""i!;~"i'tl.'" '\ , I L.J.,.W-"u_Ld.':.,;u:~ "!i I " JUL 2 0 1979 , IT .., --. .1 U'~ ~ll l' ,--.--c' t ., '/Jlij, ,! ," )J ~OA~O or: A?-'PEAt..:;.; --""' 00--., .h- c~~ f.'/# Re: Susan R. Jones, decea~d, Fi'le-No ::- ?f-1_~::Q.?Ji:- Cu~berland County Appeal from Tax Assess~ent Dear Sirs: I am the Attorney for the Estate of Susan R. Jones, deceased, and have received official no- tice of Inheritance Tax Assessment from Richard E. l'..nderson, Register of l'li1ls of Cumberland County, as Agent for the Commonwealth of Pennsylvania. This Assessw~nt is for tax on the SQm of $14,000.00, plus interest, and is the result of disallm,mnce of a credit of $14,000.00 against real property as set forth in Item 12 of the Statement of Debts and De- ductions. Copies of Schedule A in t~e Appraisement of real estate and of the Statement of Debts and Deductions are attached hereto. I respectfully appeal from the decision of the Department of Reve- nue in disallowing this deduction and in assessing this additional tax. As you can see fro~ Item 3 of the Appraise- ment of Real Estate, and from the language of Item 12 in D~e Statement of Debts and Deductions, ti1e facts are very clear. Hrs. Jones orall:t. agreed \vi tll her daughter, Betty A. Harry and her husband, Edward F. Harry, to sell to them a tract of land containing 4.02 acres, out of the farm \vhich Hrs. Jones O\vned, for the sum of $14,000.00. The Earrys either paid Mrs. Jones in cash or in materials purchased by them for the improvement of the mobile home (an addition thereto) in which Mrs. Jones was living, t~e purchase money of $14,000.00. All of this was done prior to r-1,r3. Jones' (1ea~'1.. In order to give a Deed for the 4.02 acres, a Subdivision Plan vTOuld have to be approved by the Silver Spring Township authorities. A Surveyor (Er- nest Walker) \vas hired by Hrs. Jones to make the survey necessary for subdivision, but she died before the .' -'-~~'-'~---""~--'- - Page Two - Survey was completed and presented to the Township for approval. After her death, it was decided by the Executrix and the other children (all heirs) of Mrs. Jones, to have the entire farm surveyed and subdivided, and at the same time to have the 4.02 acres surveyed. There was a question whether the Harrys would accept the 4.02 acres at the price of $14,000.00; also at the same time, tl'lere was a ques-c tien 'tlhether they \"lould purchase an additional ad- joining tract of 3.92 acres for an additional sum of $14,000.00. You must remember that the agreement between Mrs. Jones and the Harrys was oral. The Executrix could not have compelled the Harrys to purchase the land, and if they had decided not to purchase it, they certainly would have been entitled to recover their $14,000.00. I fail to understand how the Department of Revenue could rule that this was not a liability of the Estate of Mrs. Jones under Article VI of the Inheritance Tax Act. ~fuen the Harrys decided to accept the 4.02 acres ~t $14,000.00, and not to purchase the additional 3.92 acres for $14,000.00, it became, in essence, a new agreement between the Estate and the Harrys, and the $14,000.00 in the hands of the Es- tate became a credit liability to the Harrys. Con- sequently, a Deecr-from the Executrix of the Estate to Nr. and Hrs. Harry, shm"ling a consideration of $14,000.00 was executed, and is on record in the Recorder's Office in and for Cumberland County. Therefore, I respectfully request that the addi- tional tax aSS9SSJ"'tent he cancelled and that t~e credi t sho'tTn in Item 12 of the Statement of Debts and Deducti6ns be a1lot,ved as a liability of t,1-te Decedent, Susan R. Jones. In the Alternative Officials of the Department of Revenue have told me,orally, that I should not have ap- praised the 4.02 acres at $14,000.00, and that it was an error to do so. If this is so, then it \'Jas an error agreed to by the Departrn.ent, because the Inheir-tance Tax Appraiser for Cu~~erland County, who is an employee of the Department of Revenue, approved the Appraisal. In respect to this, I have requested per- reission to amend the Appraisement and to list the 4.02 acres at "011 value (similar to an Installment Sales Agreement). This permission has been rejec- ted, and I suppose that Article VII, Section 703, uf the Inheritance Tax Act, as amended in 1971, is being used as the authority for L~is refusal, since the officials have stated that tiTIe has elapseo for ~,,,,,,~'~':'~,,.',,,,, ~.:^- t ii,',-.-::,. " - Page Three - filing an Arrendment. This Section does not refer to Amendments, but only to the time within which Appraise- ments are to be filed, giving the Secretary of Revenue authority, in his discretion, to extend the time for filing it any time prior to the expiration of nine months after the death of the Decedent. The Statement of Debts and Deductions was filed March 14, 1979. It took nearly four months for the Department of Revenue to decide to disallow the deduction of $14,000.00. I think it would be reasonable to permit me to file an Aw€nded Appraisement of the real estate in r1rs. Jones' Estate by changing the 4.02 acres from $14,000.00 to O. This would accomplish an equitable result in this matter, for certainly this Estate does not owe any additional Inheritance Tax to the Common- wealth of Pennsylvania. Respectfully submitted, i" /1 y/ .. ") / , -~~ S~/(;~I. ~~~<" J/)~ Attorney f9r~\the Estate of Susan.....~ Jones G~1H : mr cc: Department of Justice, Corrmonwealth of Pennsylvania, Harrisburg, Pennsylvania, 17101.