The URL can be used to link to this page

Home My WebLink About02-04-14 J 1505610140 REV-'i 500 EX (01-10) OFFICiAL USE ONLY PA Department of Revenue Coun Code Year File Number BureBU Of Individu8l Taxes �Y �o Box 2so60� [NHERITANCE TAX RETURN 2 1 1 1 3 9 2 Harrlsbur�,PA 97128-060'f RESIDEWT DECEDENT ENTER DECHDENT INFORMATION BSLOW Soclal Security Number Date of Death MMDDYYYY Date of Birth MMDDYYYY 0 3 1 4 2 0 1 1 0 3 1 4 1 9 4 9 DecedenPs Last Name Suffix Decedent's First Name MI L I F T O N J U D l T H {If Appllcabla�Entar Surv[ving Spouse's Informatlon 8efow Spouse's Last Name Suffix Spouse's First Name MI N / A Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FlLL IN APPROPRlATE OVALS BELOW � 1.Originai Return � 2.Supp[emental Return � 3.Remainder Relurn(date of death priorto 12-13-82) � 4.Limited Estate � 4a.Future Interest Comp�omise(date of � 5.Federal Estate Tax Return ftequired death aRer 12-12-82) �] 6.Decedent Died Testate �] 7.Decedent Maintained e Living Trust _ 8.Total Number of Safe Deposit 8oxes {Atlach Copy of Will) (Atlact►Copy of Trust) � 9.Lltigation Proceeds Racelved � 10,Spousa!Poverty Credit{date of daalh � 71.EleCtion to tax under Sec.9113(A) between 12-31-91 and 1-1-95) (Attach Sch.O) CORRESPONDENT-THIS SECTIdN MUST BE COMPLETEO.ALL CORRESPONDENCE AND CONFIDENTIAL TAX iNFORMATION SHOULD BE DIRECTED T0: Name Daytime Telephone Number DEAN A WEI DNER ESQU1 RE 71 7 234 41 82 C'LtEGfSTER OF WtL'LS USDO�Y C � fTt � 3,', �;� � �,a � First line of address � =�� ' c_-�-.� c:� �,-� 5 08 NORTH S ECOND ST REET �=' �' r ''' ��' � _..., ::� Second line of address ��- �-'� ��- ' c7 ,"� P O B 0 X 8 4 5 � `�' ` ' � �� ..�° � a > ; � �� ^DATErFIL'ED = <"� Ctty cr Past Offic9 State Z!P Code '�'' _ �' � _.-q �.-� .. HARRI SB URG PA 1 7 1 08 ¢'8 45 �.`�' "' � Correspondent's e•mail address: DWEIDNERCcD.WWWPALAW.COM Unde"r penaltles of perjury,I deGare that i hava examined this return,InGuding a000mpanying schedules and slalements,and to the best ot my knowledge and belief, it is we,correcl and complete.Declaration of preparer other than the personal representa6ve Is basad on a�l Informallon of whlCh preparer has eny knowledge. - SIGNA E OF PERS N R SPONSlBLE OR FILING RETUf�N DATE ��27 / ADDRESS 109 SUNDI L DRIVE CANONSBURG PA 15317 S1GNA7URE�JP`�!%�� HERT REPRESENTATNE � /3��f DATE ADDRES� y WIX WENGER &WEIDNER, PO BOX 845 HARRISBURG PA 17108 PLEASE USE ORICi1NAL F4RM ONLY Slde 9 � 1505610140 1505610140 J � 1505610240 REV-1500 EX DecedenYs Social Security Number DecedenYSNarne: JUDITH LIFTON RECAPITULATION 1. Real Estate(Schedule A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. � • � 0 2. Stocks and Bonds(Schedule B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. � • � 0 3. Closely Held Corporation, Partnership or Sole-Proprietorship(Schedule C) . . . . . 3. 0 • � � 4. Mortgages and Notes Receivable(Schedule D) . . . . . . . . . . . . . . . . . . . . . . . . . . 4. � • � 0 5. Cash,Bank Deposits and Miscellaneous Personal Property(Schedule E). . . . . . . 5. � • � � 6. Jointly Owned Property(Schedule F) ❑ Separate Billing Requested . . . . . . . 6. • 7. Inter-Vivos Transfers&Miscellaneous Ng�Probate Property (Schedule G) U Separate Billing Requested . . . . . . . 7. � . � � 8. Total Gross Assets(total Lines 1 through 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. � . � 0 9. Funeral Expenses and Administrative Costs(Schedule H) . . . . . . . . . . . . . . . . . . 9• � 2 $ 5 5 6 �J . � 6 10. Debts of Decedent,Mortgage Liabilities,and Liens(Schedule I) . . . . . . . . . . . . . 10. � • � � ��. Total Deductions(total Lines 9 and 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. � 2 8 5 5 6 5 . 0 6 12. Net Value of Estate(Line 8 minus Line 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . �2• ' � 2 $ 5 5 6 `J . � 6 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been made(Schedule J) . . . . . . . . . . . . . . . . . . . . . . 13. . 14. Net Value Subject to Tax(Line 12 minus Line 13) . . . . . . . . . . . . . . . . . . . . . . 14. - � 2 $ 5 5 6 5 . � 6 TAX CALCULATION-SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate,or transfers under Sec.9116 (a)(1.2)X.0 _ � . � � 15. 0 . � � 16. Amount of Line 14 taxable at�inea�rate X.045 - � 2 8 5 5 6 5 . 0 6 is. - 5 7 8 5 0 . 4 3 17. Amount of Line 14 taxable at sibling rate X.12 � . � 0 17. 0 . � � 18. Amount of Line 14 taxable at collateral rate X.15 0 • � � 1 g. � . 0 � 19. TAX DUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. - �J 7 $ rJ � . 4 3 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT Q Side 2 L1505610240 1505610240 J REV-1500 EX Page 3 File Number Decedent's Complete Address: 2� 11 3s2 DECEDENT'S NAME JUDITH LIFTON STREET ADDRESS 5 TRUFFLE GLEN ROAD CITY STATE ZIP MECHANICSBURG PA 17050 Tax Payments and Credits: � �• Tax Due(Page 2,Line 19) (1) -57,850.43 2. Credits/Payments A.Prior Payments B.Discount Total Credits(A+B) (2) 0.00 3. Interest (3) 0.00 4. If Line 2 is greater than Line 1 +Line 3,enter the difference.This is the OVERPAYMENT. Fill in oval on Page 2,Line 20 to request a refund. (4) 57,850.43 5. If Line 1 +Line 3 is greater than Line 2,enter the difference.This is the TAX DUE. (5) 0.00 Make check payable to: REGISTER OF WILLS, AGENT PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred: ...................................................................... ❑ ❑X b. retain the right to designate who shall use the property transferred or its income; ............................... ❑ � c. retain a reversionary interest�or ................................................................................................ ❑ 0 d. receive the promise for life of either payments,benefits or care? ....................................................... ❑ X❑ 2. If death occurred after December 12,1982,did decedent transfer property within one year of death without receiving adequate consideration? ....................................................................................... ❑ OX 3. Did decedent own an"in trust for"or payable-upon-death bank account or security at his or her death? ......... ❑ ❑X 4. Did decedent own an individual retirement account,annuity or other non-probate property,which contains a beneficiary designation?.................................................................................................. ❑ ❑X IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES,YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. For dates of death on or after July 1, 1994,and before Jan. 1, 1995,the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3 percent[72 P.S.§9116(a)(1.1)(i)). For dates of death on or after Jan. 1, 1995,the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 0 percent [72 P.S.§9116(a)(1.1)(ii)].The statute does not exempt a transfer to a surviving spouse from tax,and the statutory requirements for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1,2000: • The tax rate imposed on the net value of transfers from a deceased child 21 years of age or younger at death to or for the use of a natural parent,an adoptive parent or a stepparent of the child is 0 percent[72 P.S.§9116(a)(1.2)]. • The tax rate imposed on the net value of transfers to or for the use of the decedenYs lineal beneficiaries is 4.5 percent,except as noted in 72 P.S.§9116(1.2)[72 P.S.§9116(a)(1)]. • The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12 percent[72 P.S.§9116(a)(1.3)].A sibling is defined,under Section 9102,as an individual who has at least one parent in common with the decedent,whether by blood or adoption. REV-1511 EX+(10-09) pennsylvania SCHEDULE H DEPARTMENT OF REVENUE FUNERAL EXPENSES AND INHERITANCETAXRETURN ADMINISTRATIVE COSTS RESIDENT DECEDENT ESTATE OF FILE NUMBER JUDITH LIFTON 21 11 392 DecedenYs debts must be reported on Schedule I. ITEM NUMBER DESCRIPTION AMOUNT A. FUNERAL EXPENSES: 1. B. ADMINISTRATIVE COSTS: 1. Personal Representative Commissions: Name(s)of Personal Representative(s) Street Address City State ZIP Year(s)Commission Paid: 2. Attomey Fees: 3, Family Exemption:(If decedenYs address is not the same as claimanYs,attach explanation.) Claimant Street Address City State ZIP Relationship of Claimant to Decedent 4. Probate Fees: 5 Accountant Fees: 6. Tax Retum Preparer Fees: 7. Additional Professional Fees 42,345.00 8, Additional Federal Penalities and Interest 1,243,220.06 TOTAL(Also enter on Line 9,Recapitulation) $ 1 285 565.06 If more space is needed,use additional sheets of paper of the same size. REV-1513 EX+(01-10) pennsylvania SCHEDULE J DEPARTMENT OF REVENUE BENEFICIARIES INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF: FILE NUMBER: JUDITH LIFTON 21 11 392 RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBER NAME AND ADDRESS OF PERSON(S)RECEIVING PROPERTY Do Not List Trustee(s) OF ESTATE I TAXABLE DISTRIBUTIONS [Include ouUight spousal distributions and transfers under Sec.9116(a)(1.2).] 1. ILYSE D. LIFTON Lineal -642,782.53 7516 134th ST SE SNOHOMISH, WA 98296 2. STACEY H. POPKO Lineal -642,782.53 101 SUNDIAL DRIVE CANONSBURG, PA 15317 ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 18 OF REV-1500 COVER SHEET,AS APPROPRIATE. II. NON-TAXABLE DISTRIBUTIONS: A.SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT TAKEN: 1. B.CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS: 1. TOTAL OF PART II-ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET. $ If more space is needed,use additional sheets of paper of the same size. Estate of Judith Lifton SSN 086-42-1150 Date of Death: March 14, 2011 File No. 21-11-0392 Schedule H, Item 7: Accounting and legal fees were estimated before negotiations with the IRS were finalized, and have been adjusted to reflect substantially final amounts. A summary of the adjustments is attached. Schedule H, Item 8: As reported on the initial Inheritance Tax Return filed on behalf of the Estate, the Estate has filed amended federal and Pennsylvania income tax returns for the decedent for calendar years 2004-2010, reporting income received by the decedent from offshore accounts. The voluntary compliance program pursued by the Estate established the maximum offshore penalty as 25% of the highest balance in the decedent's offshore accounts. The Estate had requested that the IRS reduce the assessed penalties to 5%, or$274,496.00, being the amount shown on the initial Inheritance Tax Return. However, the IRS did not grant the Estate's requesUappeal and assessed non- disclosure penalties of$1,525,829.00 (the full 25% rate), being $1,251,333.00 over the deduction claimed on the initial Inheritance Tax Return. In addition, as a result of the amended income tax returns filed on behalf of the decedent, the decedent received a credit of$8,112.94 against income taxes paid. Thus, the total amount of additional administrative claims for the estate is $1,243,220.06 ($1,251,333.00 - $8,112.94). Estate of Judith Lifton Reconciliation of IRS Audit of Federal Inhertiance Return and the Final Penity and interest of the Offshore Voluntary Reporting Program Summarv Reported Sup�lemental on Original Revised Pa inheritance Pa.Return Fi�ures return Schedule H Professional Fees: Line 2 Attorney Fees,Wix Wenger&Weidner 36,000.00 31,000.001 (5,000.00) 5 James Smeltzer,CPA(SF&Company PC) 56,000.00 99,345.001 43,345.00 15 Leech Tischman Fuscaldo&Lamp-Attorney Fees 38,000.00 42,000.001 4,000.00 20 Federal Income Tax Return 201,377.00 193,264.00� (8,112.94) 21 State Income Tax Due 14,002.00 14,002.00 0.00 22 Federal Penalties and Interest 274,496.00 1,525,829.002 1,251,333.00 Totals 619,875.00 1,905,440.06 1,285,565.06 (1) Actual billings with estimates for small additional billings to complete the estate. (2) Based on final IRS audited amounts. WIX, WENGER & WEIDNER A PROFESSIONAL CORPORATION RICHARD H.WIX ATTORNEYS AT LAW DEAN A.WEIDNER STEVEN C.WILDS 508 NORTH SECOND STREET Of Counsel THERESA L.SHADE WIX' DAVID R.GETZ HARRISBURG, PENNSYLVANIA 17101 Mailing Address: STEPHEN J.DZURANIN Post Office Box 845 JEFFREY C.CLARK Harrisburg,PA 17108-0845 PETER G.HOWLAND BRADLEY R.GORTER (717)234-4182 Suburban Office: FAX(717)234-4224 4705 DUKE STREET 'AlsoMemberMassachusettsBar www.vwuwpalaw.com HARRISBURG,PA 17109-3041 (717)652-8455 January 30, 2014 ��_: c� = �,� =n � o �" r� rn Ms. Glenda Farner Strasbaugh W =� � �? � Register of Wills � -C= � `�' `'' �-`� Cumberland County Courthouse � �' � '�n` ` ' r --� r�a y _� r...� � � �� . One Courthouse Square �� _'�, Carlisle, PA 17013-3387 `�' " ��=° �' ' ,:-� �::� =-�� . .__ : :> c�� f_, ..v,� t'�,> � :'t"� Re: Estate of Judith Lifton -•4� ��' ' � �, Estate File No. 21-11-392 '�'' � �� '' Our File No. 5254-15729 Dear Ms. Strasbaugh: We enclose the original and one copy of a Supplemental Inheritance Tax Return for filing on behalf of the above-captioned estate. Also enclosed is our check in the amount of$15.00, made payable to the "Register of Wills," representing the filing fee due. Please process these documents and return time-stamped copies to our office in the envelope provided. Thank you for your assistance in this matter. If you have any questions regarding the above, please contact me. Sincerely, �? WIX, W�'NGER &W DNER By: � �, � ;��.. '�—._� De � e B. Williamson Paralegal /dbw Enclosures cc: Ms. Stacey Popko Dean A. Weidner, Esquire Peter G. Howland, Esquire C " , non � � � - A� � C CD y --- � � � � 9 ~ � n � � G? z �C � � � � � � � Y � � � � � � z � � � � � � � � � � � � � � o -- � zT � �Z � � N � y � CJ.),� � �' `C�,-1 `r�� c�i� � W C `� � ta z Y �,° n � ^ � a�'o � ° y z � � � � v � a� 9Nx � o v�a � m ~ � � d � � � M y � LM1J � � r