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Home My WebLink About02-28-11 (2)i. ~ INHERITANCE TAX ~?~~~ ~~ ~~ ~ ~~;~,~ ~~' RECORD ADJUSTMENT BUREAU OF INDIVIDUAL TAXES ~ ~ ,,; ; ~ INHERITANCE TAX DIVISION T < _,;,~j PO BOX 280601 ~~-~" HARRISBURG PA 17128-0601 f '` c~E~~r~;,1~ > i, ~ ~%: +, ~+~ ~ 'ill ~~1T JOEL R HILLISON 1114 FLEETWOOD DR CARLISLE PA 17013 Pennsylvania ~ ~ DEPARTMENT OF REVENUE REV-1593 E:X AFP (12-10) r DATE 02-17-2011 ESTATE OF HILLISON KATHERINE L DATE OF DEATH 06-07-2009 FILE NUMBER 21 09-0664 COUNTY CUMBERLAND ACN 101 Amount Remitted MAKE CHECK PAYABLE AND REMIT PAYMENT T0: REGISTER OF WILLS 1 COURTHOUSE SQUARE CARLISLE PA 17013 NOTE: To ensure 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 ~ REV-1593 EX AFP (12-10~ ** INHERITANCE TAX RECORD ADJUSTMENT ** ESTATE OF:HILLISON KATHERINE L FILE N0.:21 09-0664 ACN: 101 DATE: 02-17-2011 ADJUSTMENT BASED oN: PROTEST BOARD DECISION VALUE OF ESTATE: 1. Real Estate (Schedule A) ~1) .0 0 2. Stocks and Bonds (Schedule B) (2) .0 0 3. Closely Held Stock/Partnership Interest (Schedule C) C3) .0 0 4. Mortgages/Notes Receivable (Schedule D) (4) .0 0 5. Cash/Bank Deposits/Misc. Personal Property (Schedule E) L5) 3 5,7 4 9.7 2 6. Jointly Owned Property (Schedule F) (6) .0 0 7. Transfers (Schedule G) (7) .0 0 8. Total Assets ~$) 35, 749.72 DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/Administrative Costs/ Miscellaneous Expenses (Schedule H) C9) 3, 585.00 10. Debts/Mortgage Liabilities/Liens (Schedule I) C10) 16 3.11 11. Total Deductions (11) 3, 748.11 12. Net Value of Tax Return (12) 32, 001.61 13. Charitable/Governmental Bequests; Non-elected 9113 Trusts (Schedule J) (13) .0 0 14. Net Value of Estate Subject to Tax (14) 32, 001.61 TAX: 15. Amount of Line 14 at Spousal rate (15) .00X.00 = .00 16. Amount of Line 14 taxable at Lineal/Class A rate C16) 32, 001.61 X.045= 1,440.07 17. Amount of Line 14 at Sibling rate (17) .00X.12 = .00 18. Amount of Line 14 taxable at Collateral/Class B rate C18) ,0 0 x.15 = .0 0 19. Principal Tax Due (19) 1,440.07 TAX CREDITS: PAYMENT RECEIPT DISCOUNT C+) DATE NUMBER INTEREST/PEN PAID (-) AMOUNT PAID 03-29-2010 CD012533 3.48- 1,443.71 TOTAL TAX PAYMENT 1,440.23 ALANCE OF TAX DUE .16CR INTEREST AND PEN. .00 TOTAL DUE .16CR * IF PAID AFTER DATE INDICATED, SEE REVERSE IF TOTAL DUE IS REFLECTED AS A "CREDIT" CCR), YOU MAY BE DUE FOR CALCULATION OF ADDITIONAL INTEREST. A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) ~ ~~ t ~ ,~. BbARD OF APPEALS P O Box 281021 HARRISBURG, PA 17128-1021 Pennsylvania ~ DEPARTMENT OF REVENUE BOARD ill= APPEALS JOEL R HILLISON 1114 FLEETWOOD DR CARLISLE, PA 17013 IN RE ESTATE OF: HILLISON KATHERINE L DOCKET NO. TAX TYPE APPEAL TYPE FILE NUMBER: ACN APPRAISEMENT: PETITION FILED EXAMINER: MAILING DATE: DECISION AND ORDER 1005415 InheritancE~ Protest 21.09-0664- 101 3/15/2010 3/29/2010 JEFFREY HOL_LENBUSH Direct Dial: (717) 783-7891 Fax: (717) 787-7270 Email:jholleribus@state.pa.us February 1.0, 2011 On March 15, 2010, the Department of Revenue issued an appraisement and assessment which did not credit the original payment of September 4, 2009 in the amount of $1,364.28 and allow the 5% discount. Petitioner contends the check was "stamped uncollected". Petitioner states the $1,364.28 check issued from M&T Bank account #328184-11 had sufficient funds. Petitioner submitted a copy of the bank statement for the account as evidence. Petitioner initially argues tlhey did not receive notification that a problem existed with the check until the assessment was issued. Petitioner subsequently issued a second payment $1,443.71. Petitioner requests a refund for the 5% discount and interest of $3.64. .~ HILLISON KATHERINE L BOARD DOCKET NO. 1005415 Page2of3 The Board finds the decision of the Erie County Orphans' Court in Alden Estate, 8 Fiduc. Rep. 162 (O.C. Erie 1958), is dispositive on the issue: The discount with which we are presently concerned is authorized by Section 38 of the Act of June 20, 1919, P.L.521, as amended May 27, 1943, P.L. 757, Section 5, 72 P.S. X2:442, which provides: "If the tax is paid within three months after the death of the decedent, a discount of five per centum shall be allowed..." We must determine whether the taxpayer in the present instance earned the discount. The statute provides that discount shall be allowed if the tax is "paid" within the specified period. The required payment is not made merely by delivery of a check by ttaxpayer to the register of wills and its acceptance or receipt by thE~ register. The check does not at the moment of delivery, complete payment of the tax obligation. It is merely a step towards payment. Delivery of the check and its acceptance by the register is only conditional payment, subject to actual payment of the check by payor bank upon presentation. Conditional payment by check becomes absolute only upon actual payment by drawee bank or divested by nonpayment: Wedmore v. McInnes, 69 Pa. Super. 220. Payment is not accomplished until the check is honored and paid by drawee bank, and constitutes payment only to the extent that iit is so paid upon presentation. "It is elementary law that where a...check is received by a creditor from his debtor for an existing df~bt, the presumption is, in the absence of an agreement to the contrary, that it is received as conditional and not absolute payment, and the burden of proving the existence of such an agreement is upon the debtor": Diskin v. Police Pension Fund Assn., 367 Pa. ~?73, 276.. . It seems clear that a taxpayer to be entitled to the statutory discount must affirmatively bring himself within its provisions by full compliance with its terms. If the taxpayer, for any reason, fails to meet the requirements he is not entitled to the discount; we are without authority to relax any requirement or to extend the discount period...To hold otherwise would be completely contrary to long and well-established commercial practice and in direct conflict with the rules of law governing business transactions: see Wendkos v. Scranton Life Insurance Co., 340 Pa. 550; also Uniform Commercial Code --Commercial paper, 12 A PS § 3-102. We are not required to nor do we fix responsibility for the result which none of the parties desired or intended. Board of Appeals ~ PO Box 281021 ~ Harrisburg, PA 17128 ~ 717.783.3664 ~ www.revenue.state.pa.us HILLISON KATHERINE L BOARD DOCKET NO. 1005415 Page3of3 Regarding interest, Section 2143 of the Inheritance and Estate Tax Act of 1991 allows for the adjustment or abatement of interest when the payment of inheritance tax has not been made because of litigation or other unavoidable cause of delay. The term "litigation or other unavoidable cause of delay" is found in existing law and is interpreted to require good faith litigation arising from an honest disagreement. Husband's Est., 316 Pa. 361 (1934). The Board concludes that, there has been no "unavoidable cause of delay" within the meaning of the Statute. Although it is regrettable that the bank in this estate did not honor the check when presented, the Board is unable to grant the relief requested. Accordingly, it is hereby, Ordered that the protest is denied. FOR THE BOARD OF APPEALS LAUREN ZACCARELLI, CHIAIR ANY APPEAL FROM THIS DECISION MUST BE FILED WITH THE ORP'HANS` COURT WITHIN SIXTY (60) DAYS OF RECEIPT OF THIS DECISION. A COPY OF THE APPEAL SHOULD BE SERVED ON THE DEPARTMENT OF REVENUE, OFFICE OF CHIEF COUNSEL, P.O. BOX 281061, HARRISBURG, PA 17128-1061. ANY APPLICABLE NOTICE REFLECTING ANY CHANGES TO THE ACCOUNT PURSUANT TO THE BOARD'S DECISION AND ORDER MAY BE MAILiED 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). Board of Appeals ~ PO Box 281021 ~ Harrisburg, PA 17128 ~ 717.783.3664 ~ www.revenue.state.pa.us