Filing REV-72 and REV-956 for PA Inheritance Tax
A procedural guide for estate executors preparing a PA inheritance tax return, covering key steps from initial asset inventory to final filing.
When a person passes away in Pennsylvania, their estate may be subject to an inheritance tax. The personal representative of the estate, often an executor or administrator, is responsible for managing this process. This involves inventorying assets, preparing the necessary paperwork, and paying any tax due to the Pennsylvania Department of Revenue. This process uses forms for safe deposit box inventories and the main inheritance tax return, REV-1500.
The Safe Deposit Box Inventory Process
If the person who passed away, known as the decedent, had a safe deposit box, an inventory of its contents is required. The estate’s personal representative may enter the safe deposit box after providing at least seven days’ notice to the financial institution and the Pennsylvania Department of Revenue.
During the entry, every item within the box must be documented on Form REV-485, the Safe Deposit Box Inventory. This creates a detailed log of the contents, which could include jewelry, stock certificates, cash, and important documents. Within 20 days of entering the box, the representative must file the completed REV-485 with the Department of Revenue’s Safe Deposit Box Unit.
Gathering Information for the Inheritance Tax Return
Preparing the Pennsylvania Inheritance Tax Return, filed using Form REV-1500, requires a collection of financial information. The executor must gather documentation covering all aspects of the decedent’s financial life to form a complete picture of the estate’s value for tax purposes. The official REV-1500 form and its instructions can be downloaded from the Pennsylvania Department of Revenue’s website.
The information needed for the return’s asset schedules includes:
- Date-of-death values for all bank accounts
- Formal appraisals for any real estate
- Market values for stocks and bonds
- Valuations for tangible personal property, such as vehicles, collectibles, and jewelry
- A valuation for any business interests held by the decedent
Equally important is the documentation for debts and deductions, which can reduce the taxable estate. These include funeral expenses, costs associated with administering the estate like legal and accounting fees, and any outstanding debts the decedent owed. The executor must also gather the full names, addresses, and relationship to the decedent for all beneficiaries, as this information determines the tax rate applied to their inheritance.
Filing the Inheritance Tax Return and Paying the Tax
Once the REV-1500 is complete, the filing package is assembled. It must include the REV-1500 with all schedules, a copy of the decedent’s will, and any real estate appraisals. The entire package is filed with the Register of Wills in the county where the decedent resided.
The inheritance tax payment is due within nine months of the decedent’s date of death. A 5% discount is offered if the tax is paid within three months of the date of death. Payment should be made by check or money order payable to “Register of Wills, Agent.”
After the return is filed, the Department of Revenue reviews the submission. The estate will receive a “Notice of Appraisement” from the department. This document confirms the assessment of the estate’s value and the final tax liability.