HomeMy WebLinkAbout11-07-08COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF REVENUE
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BUREAU OF INDIVIDUAL TAXES, ~`;,,j ~,~it `r i ~,i~ _~ INHERITANCE TAX
INHERITANCE TAX DIVISION
Po BOX 280601 , '_'~ ~ ~`~ ~.• °~ •-- RECORD ADJUSTMENT
HARRISBURG PA 17128-0601
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ORPHAN'S COURT
SHARON DRAWBAUG~ ~:•-- ~ ~,~°v~? '~•~•~
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7353 FISHNG CRK VLY RD
HBG PA 17112
REGISTER OF WILLS
CUMBERLAND CO COURT HOUSE
CARLISLE, PA 17013
NOTE: To insure proper credit to your account, submit the upper portion of this form with your tax payment.
CUT ALONG THIS LINE --'~ RETAIN LOWER PORTION FOR YOUR RECORDS F
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REV-1593 EX AFP C03-05) ** INHERITANCE TAX RECORD ADJUSTMENT *~
ESTATE OF DRAWBAUGH MYRTLE FILE N0. 21 06-0650 ACN 101 DATE 10-31-2008
ADJUSTMENT BASED oN: PROTEST BOARD DECISION
VALUE OF ESTATE:
1. Real Estate (Schedule A)
2. Stocks and Bonds (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
(1) .00
(2) .00
(3) .00
(4) .00
(5) 50,749.11
c6) .00
cn .00
(B) 50 , 749.11
(9) 569.56
(1D) 273.97
(11) 843.53
(12) 49,905.58
13. Charitable/Governmental Bequests; Non-elected 9113 Trusts (Schedule J) C13) .00
14. Net Value of Estate Subject to Tax (14) 49,905.58
TAX:
15. Amount of Line 14 at Spousal rate (15) , 00 X 00 = . 00
16. Amount of Line 14 taxable at Lineal/Class A rate C16) 49,905.58 X 045= 2,245.75
17. Amount of Line 14 at Sibling rate C17) .00 X 12 = .00
18. Amount of Line 14 taxable at Collateral/Class B rate (18) .00 X 15 = .00
19. Principal
T~v rsrnrr,. _ Tax D ue (19) 2,245.75
DATE ~ NUMBER ~ INTEREST/PEN PAID (-) ~ AMOUNT PAID
INTEREST IS CHARGED THROUGH 11-15-2008
AT THE RATES APPLICABLE AS OUTLINED ON THE
REVERSE SIDE OF THIS FORM
REV-1593 EX AFP C03-05)
DATE 10-31-2008
ESTATE DF DRAWBAUGH MYRTLE
DATE OF DEATH 01-11-2007
FILE NUMBER 21 06-0650
COUNTY CUMBERLAND
ACN 101
Amount Remitted
MAKE CHECK PAYABLE AND REMIT PAYMENT T0:
TOTAL TAX CREDIT .00
BALANCE OF TAX DUE 2,245.75
INTEREST AND PEN. 177.82
TOTAL DUE 2,423.57
* IF PAID AFTER DATE INDICATED, SEE REVERSE ( IF TOTAL DUE IS LESS THAN S1, NO PAYMENT IS REQUIRED.
FOR CALCULATION OF ADDITIONAL INTEREST. IF TOTAL DUE IS REFLECTED AS A "CREDIT" CCR], YOU MAY BE DUE
A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.)
BOARD OF APPEALS
P U Box 281021 COMMONWEALTH OF PENNSYLVANIA
HARRISBURG. PA 17128-1021 DEPARTMENT OF REVENUE
SHARON DRAWBAUGH IN RE ESTATE OF:
7353 FISHING CREEK VALLEY RD
HARRISBURG PA 17112 DRAWBAUGH MYRTLE
DOCKET NO.
TAX TYPE:
APPEAL TYPE
FILE NUMBER:
ACN:
APPRAISEMENT
PETITION FILED:
EXAMINER:
MAILING DATE
DECISION AND ORDER
a[ritisvEVgwq
DERFR f i~tENi OF
venue
0722824
Inheritance
Protest
2106-0650
101
11 /26/2007
12/11 /2007
JEFFREY HOLLENBUSH
Direct Dial: (717) 783-7891
Fax: (717) 787-7270
Email:jhollenbus@state.pa.us
October 9, 2008
On November 26, 2007, the Department issued an appraisement and assessment
which assessed tax at the 4.5% lineal rate on the net estate of $49,905.58. The sole
reported asset on the original inheritance tax return was a $50,749.11 Commerce Bank
checking account. Petitioner questions why the account is subject to tax as the account
was funded by a retirement annuity. Evidence submitted to the Board included a
September 7, 2006 Fixed Annuity Statement from Genworth Life Insurance Company.
Section 2111(r) of the Inheritance and Estate Tax Act of 1991 provides that
payments under pension, stock bonus, profit-sharing and other retirement plans including,
but not limited to, H.R. 10 plans, individual retirement accounts, individual retirement
annuities and individual retirement bonds to distributees designated by decedent or in
accordance with the terms of the plan, are exempt from inheritance tax to the extent the
decedent did not have the right to possess, enjoy, assign or anticipate the payments made.
DRAWBAUGH MYRTLE
BOARD DOCKET NO. 0722824
Page 2 of 2
This section is implemented through a regulation which provides that a plan is subject to
inheritance tax if the decedent possessed the "...right to withdraw benefits, including the right
to withdraw only upon payment of a penalty or additional tax if the penalty or additional tax is
smaller than 10 percent of the withdrawal." 61 Pa. Code § 93.131(d)(2)(i)(A).
In this case the annuity funds were surrendered to the decedent in September of
2006, more than four months before her death, at a charge of less than 3 percent. As
decedent obviously had the right to possess the proceeds prior to her death, the funds may
not be excluded from tax under Section 2111(r).
Accordingly, it is hereby, Ordered that the protest is denied.
FOR THE BOARD OF APPEALS
JOSEPH R SLEEK, MEMBER
ANY APPEAL FROM THIS DECISION MUST BE FILED WITH THE ORPHANS' COURT
WITHIN SIXTY (60) DAYS OF RECEIPT OF THIS DECISION.
ANY APPLICABLE NOTICE REFLECTING ANY CHANGES TO THE ACCOUNT
PURSUANT TO THE BOARD'S DECISION AND ORDER MAY BE MAILED TO YOU BY
THE APPROPRIATE BUREAU.
IF YOU REQUIRE THIS INFORMATION IN AN ALTERNATE FORMAT UNDER THE
PROVISIONS OF AMERICANS WITH DISABILITIES ACT OF 1990, PLEASE CALL (717)
783-3664, OR FOR SERVICES FOR TAXPAYERS WITH SPECIAL HEARING AND
SPEAKING NEEDS: 1-800-447-3020 (TT ONLY).