Where there is doubt as to whether the gross estate exceeds $50,000, the notice should be filed, as a matter of precaution, in order to avoid penalties. . . ... In the case of the estates of nonresident decedents, notice is required if there is any property situated in the United States, without reference to its value.' The 60-day notice must be filed by others if: (1) No executor or administrator has been appointed. The regulations hold that: Where no executor or administrator has been appointed, the person taking possession of property at the time of death is required to file notice within 60 days of the date of death. The notice must be filed whether possession of the property was held at the date of death, or was acquired thereafter.' On the other hand: Where there is property that will not come into the custody and control of the executor, but which is included in the gross estate as defined by the statute, the notice on Form 704 must be filed within 60 days of the date of death by the person in possession or control of the property at the time of death.* The executors of estates for which military exemption is claimed are required to file the notice, but should write across the face of the form the words "Military Exemption Claimed." § 351. Filing the Federal Return In all cases where the amount of the gross estate of a resident exceeds $50,000, there must be filed within one year after the date of demise a return setting forth: 1 Articles 66 and 67 of Regulations 37. Article 68 of Regulations 37. Article 69 of Regulations 37. Article 70 of Regulations 37. 1. The amount of the gross estate 2. The amount of the allowable deductions 3. The value of the net estate 4. The amount of tax payable thereon Returns for non-resident estates must be filed if there is any property whatever within the United States. If there is more than one executor or administrator, the return must be made jointly by all. . . . The executor or administrator is required to make a return of the entire gross estate of the decedent, including property which will not come into his possession, such as property transferred by the decedent before death, and property owned by tenants in the entirety. If the executor is unable to make a complete return as to any part of the gross estate, he is required to give all the information he has as to such property, including a full description, and the name of every person holding a legal or beneficial interest in the property. Where the executor is unable to make a return as to any property, the statute requires every person holding a legal or beneficial interest therein, upon notice from the collector, to make return as to such part of the gross estate. In the case of estates of non-residents: It is the duty of any executor or administrator appointed in the United States to file a return for the whole of that part of the gross estate situated in the United States, whatever its value. If there is no such executor or administrator, every person in possession of any part of the gross estate in the United States may be required to file a return for such part. Notice will be given to such persons, however, where a return is required.* § 352. Nature of Return The return is made on the Form 706 furnished by the Collector of Internal Revenue for the district and must contain Article 80 of Regulations 37. Article 88 of Regulations 37. all the information necessary for the computation of the tax and audit of the return, together with such supporting schedules as are called for in the printed form of return. Certified copies of the will must accompany it, and in the case of nonresidents there must be filed a complete inventory of the estate, wherever located, and a statement of claims filed under foreign taxing acts. The executor or other persons may be called on to furnish any other information which will assist in the determination or verification of the total amount of tax to be levied. § 353. Extension of Time for Filing Return If it is impossible for the executor to file a complete return within the proper time, he may, upon satisfying the collector of that impossibility, secure extensions of time of not to exceed 60 days each and in no case of a greater aggregate than 180 days. If the return which he finally files at the end of his extension is not correct or is incomplete, or if the return is filed within the proper time and afterward is found to be wrong, an amended return should be filed, when the error can be corrected. § 354. Computation of Tax per While it seems that the states desire to encourage son's leaving his property to his immediate relatives, since the tax upon transfers to immediate relatives is nominal if levied at all, the theory of the federal tax is that it is one for revenue only. To compute it the net estate is divisible into blocks, each block being taxed at a different and increasing rate in much the same way in which the surtax is computed on individual incomes. The Bureau of Internal Revenue furnishes the following example of the use of the table for the computation of the federal tax: The net estate of a decedent dying on or after February 25, 1919, amounts to $1,240,000. By reference to the table it will be seen that the last complete block prior to this amount is $1,000,000, and that the total tax on a million dollars under the rates in force amounts to $51,500. Upon the remainder of the estate, $240,000, the tax is computed at the rate contained in the following line, or at 10 per cent. The tax on this amount is consequently $24,000. The following result is thus obtained: Heavy penalties are provided for failing to file the 60-day notice or the return, for making a false or fraudulent return, and for failing to exhibit, at the request of the Commissioner or of any collector, any property forming part of the gross estate or any record, file, or paper, supposed by the department to contain information relating to the estate. Article 8 of Regulations 37. REVIEW QUESTIONS 1. Where are the papers relating to the federal estate tax filed when the decedent is a resident? When he is a non-resident? Who is responsible for filing? When are no papers to be filed? Where must it be filed? When no 2. What is the 60-day notice? executor has been appointed, who must file this notice? What is the rule when military exemption is claimed? 3. When must the federal return for residents be filed? What must this set forth? What is the rule as to return? If there is no personal representative, who makes the return? 4. What must be filed with the return? 5. When may an extension of time to file the return be obtained? 6. How is the filing of accurate returns enforced? 7. How is the amount of the tax computed? What would be the tax on an estate of $60,000? Of $200,000? Of $900,000? |