Inheritance Tax General Information (REV-720)

1 APPRAISEMENT, ALLOWANCE ORDISALLOWANCE OF DEDUCTIONS ANDASSESSMENT OF TAXA fter an Inheritance tax return is filed, the Departmentof Revenue issues a notice setting forth its valuation ofthe estate s assets, allowable deductions and tax on the complexity of the return, it can takethree to six months from the date a return is filed withthe Register of Wills for processing to be , NOTICE OR APPEALAny party with interest in the estate, who is notsatisfied with a department determination of estatevalue, allowance or disallowance of Inheritance taxdeductions and/or tax liability, may appeal within 60days of receipt of the notice to which objection ismade.

2 Appeal Information is available FREQUENTLY ASKED QUESTIONS Review Revenue s Online Customer Service Center answers to frequentlyasked questions. There you may also submit questionsspecific to an estate to a customer service INFORMATIONFor additional Inheritance tax Information ,please call 717-787-8327 or write to thefollowing address:PA Department of RevenueBureau of Individual TaxesPO Box 280601 Harrisburg, PA 17128-0601 FOR General TAX QUESTIONS:Online Customer Service Service Representative717-787-8327 Automated Forms Ordering Service1-800-362-2050 Services for Taxpayers with Special Hearingand/or Speaking Needs1-800-447-3020 REV-720 (9-14) MUST FILEA Pennsylvania Inheritance Tax Return, REV-1500, mustbe filed for every decedent with property that may besubject to Pennsylvania Inheritance tax.

3 The personal representative (executor oradministrator appointed by the Register of Wills)of a decedent s estate is the person responsiblefor disclosing property of the decedent and filingthe Inheritance tax no personal representative is appointed, if thepersonal representative does not file a return, orif the personal representative files a return butdoes not disclose all transferred property, thenthe transferee of property should file aninheritance tax return. A transferee is any person to whom propertyfrom the decedent is transferred, includingsurviving joint tenants, beneficiaries and transferee must disclose any asset in whichor of which he or she receives any ownership,interest, income, possession or enjoyment,whether present or future, and whether in trustor otherwise.

4 Separate returns are not to be filedby transferees for property included in apersonal representative s return. WHEN TO FILEAn Inheritance tax return should be filed as soon aspossible after a decedent s death, but no later thannine months from the decedent s date of death. Failureto file may subject the estate to a penalty of 25percent of the tax ultimately found to be due or$1,000, whichever is TO FILEAn Inheritance tax return must be filed in duplicate withthe Register of Wills of the county in which the decedentwas a resident at the time of death.

5 PAYMENT OF TAXTax on property transferred is due within nine months ofthe decedent s death. A five percent discount is allowed on the tax paid withinthree calendar months of a decedent s death. Nodiscount applies to any amount that may besubsequently refunded. A pre-payment of tax may be made at the Register ofWills before the REV-1500 is filed. In writing, supply theRegister with the decedent s full name, date of deathand Social Security number along with the checks must be made payable to Register of Wills,Agent and presented to the Register of Wills of thecounty where the decedent resided.

6 TAX RATESThe rates for Pennsylvania Inheritance tax as of July 1,2000 are as follows: 0 percent on transfers to a surviving spouse or toa parent from a child aged 21 or younger; percent on transfers to direct descendantsand lineal heirs; 12 percent on transfers to siblings; and 15 percent on transfers to other heirs, exceptcharitable organizations, exempt institutions andgovernment entities exempt from tax. Tax rates for dates of death prior to July 1, 2000 can befound by visiting INTERESTI nterest on overdue Inheritance tax is charged ninemonths and one day from the date of death, to the dateof payment.

7 Interest rates are detailed in form REV-1611, available at An online interest and penalty calculator is alsoavailable on the department s e-services website, tax forms, schedules and instructions areavailable at You mayalso order any Pennsylvania tax form or schedule bycalling, toll-free 1-800-362-2050. Services for peoplewith special hearing and/or speaking needs areavailable at 1-800-447-3020. Schedules A through G are used to report assets of theestate. Schedules H and I are used to report debts anddeductions of the estate.

8 Schedules K through O areused to report life estates, remainders and futureinterest compromises. Instructions for each scheduleare available on the department s REV-1500, Pennsylvania Inheritance Tax Return andcorresponding instructions for more specific informationare available on the department s website. TAXABLE PROPERTYIn General , any items the decedent owned solely, jointlyor in trust are taxable unless specifically excluded fromtaxation by law. For additional Information seeinstructions for Schedules A, B, C, D, E, F and G fordescriptions of taxable , valuation is based on the fair market value asof the decedent s date of death.

9 Special rules apply forvaluation of life estates and future interests created bya decedent. See the instructions for Schedules K and Mfor more Information . Special rules also apply to the taxation of farmland andsmall business interests. See the instructions forSchedules AU and C-SB for further informationconcerning these provisions. NOTE:Pennsylvania does not utilize or accept a sixmonth alternate valuation date like the federalgovernment does. DEDUCTIONSF uneral expenses, administrative costs and debts owedby the decedent at the time of death are deductionsallowed against the Inheritance tax liability.

10 See theinstructions for Schedules H and I for descriptions ofallowable deductions.