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Home My WebLink About08-15-08COMMONWEALTH OF PENNSYLVANIA °DEPARTMENT OF REVENUE BUREAU OF INDIyIDUAL TAXES INHERITANCE'.. TAX INHERITANCE TAX DIVISION - ~ -~' ' PO BOX 28 01 HARRISBURG PA 17128-0601 nn~yy r+. I' .; [; CLEF';: ~ :~+- '(' OFs~I ~u~v J ~,;~JR1 ~{~ra1: ~ ~:~~ ~}., P~~ DAVID H STONE ESQ STONE ETAL 414 BRIDGE ST NEW CUMBERLAND PA 17070 RECORD ADJUSTMENT DATE! 07-31-2008 ESTA E OF BRUNGARD FRANCES DATE OF DEATH 12-02-2006 FILE NUMBER 21 06-1147 COON Y CUMBERLAND ACN 101 MAKE Amount Remitted CHECK PAYABLE AND REMIT PAYMENT T0: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 T NOTE: To insure proper credit to your account, submit the up er portion of this form with your tax payment. CUT ALONG THIS LINE-------- ~--___RETAIN LOWER PORTION F R YOUR RECORDS (-~ ----- --------------------- - - - ------- REV-1593 EX AFP C03-05) *~ INHERITANCE TAX RECOR ADJUSTMENT r* ESTATE OF BRUNGARD FRANCES T FILE N0. 21 06 1147 ACN 101 DATE ADJUSTMENT BASED oN: PROTEST BOARD DECISION VALUE OF ESTATE: 1. Real Estate (Schedule A) 2. Stocks and Bands (Schedule B) 3. Closely Held Stock/Partnership Interest (Schedule C) 4. Mortgages/Notes Receivable (Schedule D) 5. Cash/Bank Deposits/Misc. Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) 7. Transfers (Schedule G) 8. Total Assets DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/Administrative Costs/ Miscellaneous Expenses (Schedule H) 10. Debts/Mortgage Liabilities/Liens (Schedule I) 11. Total Deductions 12. Net Value of Tax Return 13. Charitable/Governmental Bequests; Non-elected 9113 T 14. Net Value of Estate Subject to Tax TAX: 15 cl) 125,500.00 cz) 281 , 170.47 c3) .00 c4) .00 c5) 602, 955.33 c6) 6,853.10 c7) 98, 197.40 cB) 1,114,676.30 c9) 100,082.88 clo) 7,869.23 cll) 107,952.11 c12) 1,006,724.19 ots (schedule J) c13) 869, 936.69 c14) 136,787.50 Amount of Line 14 at Spousal rate (15 . 00 X 00 = . 00 16. Amount of Line 14 taxable at Lineal/Class A rate (16 . 00 X 045= . 00 17. Amount of Line 14 at Sibling rate (17 . 00 X 12 = . 00 18. Amount of Line 14 taxable at Collateral/Class B rate (18 _ 136,787.50 X 15 = 20,518.13 19. Principal TAX CREDITS: Tax Due C19) 20 , 518.13 DATE NUMBER INTEREST/PEN PAID (-) AMOUNT PAID ** * SUMMARY OF ALL 06 PAYMENTS *** 08-31-2007 818.67 19,699.46 IUTAL TAX CREDIT 20,518.13 ALANCE OF TAX DUE .00 NTEREST AND PEN. .00 TOTAL DUE .00 * IF PAID AFTER DATE INDICATED, SEE REVERSE C IF TOTAL DUE IS ~.ESS THAN S1, NO PAYMENT IS REQUIRED. ~Y` FOR CALCULATION OF ADDITIONAL INTEREST. IF TOTAL DUE IS EFLECTED AS A "CREDIT" CCR), YOU MAY BE DUE J~ A REFUND. SEE ~EVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) (((/// 07-31-2008 BOARD OF APPEALS P O Box 281021 COMMONWEALTH OF PENNSYLVANIA HARRISBURG, PA 17128-1021 DEPARTMENT OF F2EVENUE ~ j ., KEITH KOLANDA IN I E ESTATE OF: 1605 LIZ BURNS PL MECHANICSBURG PA 17055-5937 BR NGARD FRANCES T ,: v'en'u"e DOCKET NO.: 0807427 T TYPE: Inheritance AP EAL TYPE Protest FIL NUMBER: 2106-1147 AC 07002815 AP RAISEMENT: 1/14/2008 PE ITION FILED: 3/3/2008 E MINER: SHAWN E YOUNG Direct Dial: (717) 783-7894 Fax: (717) 787-7270 Email:shyoung@state.pa.us MA LING DATE: July 22, 2008 N AND On January 14, 2008, the Department issued ER ce of appraisement and assessment ACN 07002815 advising Keith Kolanda, the Petitioner, that he was liable for the payment of tax at the 15% rate on the date of dE Contract #022579. The Department's action was bs estate on August 31, 2007. The appraisement and < interest charges in the amount of $184.22, accrued 1 death and projected to January 22, 2008. Petitioner th value of Sun America Annuity on information disclosed by the ment notice also imposed m nine months after the date of ects to the imposition of interest because he was not aware of the inheritance tax obligation until he received the Department's notice. Petitioner also requests that he for payment within three months after the date of dea the discount period if he had received a tax notice fro the tax was due. The Petitioner does not dispute the be refunded the five percent discount h because he would have paid within the Department and had known that liability, which was paid on BRUNGARD FRANCES T BOARD DOCKET NO. 0807427 Pa~e2of3 February 25, 2008. A balance consisting of the intere $223.65, remains due. charged to February 25, 2008, Petitioner requested and received a hearing in tf~is matter on June 3, 2008, at the office of the Board of Appeals, Harrisburg, Pennsylvania. behalf. Present on behalf of the Department was Sh Board of Appeals. The Petitioner contends that his February 25, 20 early payment discount because he did not receive noti~ December 5, 2007, more than a year after decedent's d Inheritance and Estate tax Act of 1991, 72 P.S. § 9142, the extent that the inheritance tax is paid within three m~ decedent. In Alden Estate, 8 Fiduc. Rep. 162 (O.C. EriE Court addressed the issue of the discount, stating: It seems clear that a taxpayer to be entitled to affirmatively bring himself within its provisions the taxpayer, for any reason, fails to meet the the discount; we are without authority to relax discount period...We are not required to nor do which none of the parties desired or intended. Petitioner appeared on his own E. Young, Hearing Officer for the payment qualifies for the 5% ion of the tax obligation until th. Section 2142 of the ides for a discount of 5% "to after the death of the 1958), the Erie County Orphans' the statutory discount must by full compliance with its terms. tf requirements he is not entitled to any requirement or to extend the we fix responsibility for the result (emphasis supplied) Although it is unfortunate that Petitioner may not f~ave been aware of the inheritance tax obligation, the Board notes that the Department is their tax obligations. Rather, Sections 2136(a)(2) and 21 Tax Act of 1991 place the ultimate responsibility for filing transferee. Absent a payment within three months of the has no authority upon which to allow a discount. required to notify transferees of f) of the Inheritance and Estate a return and remitting tax on the death of the decedent, this Board BRUNGARD FRANCES T BOARD DOCKET NO. 0807427 "fi~age 3 of 3 Furthermore, § 2143 of the Statute provides tax was not paid due to litigation or other unavoid or other unavoidable cause of delay" is interpreted the imposition of interest unless the e cause of delay. The term "litigation require good faith litigation arising from an honest disagreement. Husband's Estate, 3 6 Pa. 361. There is no evidence that the decedent's annuity was the subject of litigation. Since the circumstances surrounding the failure to pay the tax liability in a timely manner o not constitute "unavoidable cause of delay" within the meaning of the Statute, the Board i without statutory authority to grant the relief requested. Accordingly, it is hereby Ordered that the pro~est is denied. The Department's appraisement and assessment shall stand as filed. FOR TF~E BOARD OF APPEALS JOSEPI~ R. SLEEK, MEMBER ANY APPEAL FROM THIS DECISION MUST BE FILED WITH THE ORPHANS' COURT WITHIN SIXTY (60) DAYS OF RECEIPT OF THIS ELISION. ANY APPLICABLE NOTICE REFLECTING ANY CH NGES TO THE ACCOUNT PURSUANT TO THE BOARD'S DECISION AND O DER MAY BE MAILED TO YOU BY THE APPROPRIATE BUREAU. IF YOU REQUIRE THIS INFORMATION IN AN ALT RNATE FORMAT UNDER THE PROVISIONS OF AMERICANS WITH DISABILITIE ACT OF 1990, PLEASE CALL (717) 783-3664, OR FOR SERVICES FOR TAXPAYERS ITH SPECIAL HEARING AND SPEAKING NEEDS: 1-800-447-3020 (TT ONLY).