Pa 1500 Form – Fill Out and Use This PDF

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children of the natural parents and their descendants,

In general, any items the decedent owned solely, as tenant-

whether or not they have been adopted by others, adopted

in-common, jointly or in trust are taxable unless specifically

descendants and their descendants, and step descen-

excluded by law. For additional information see instructions

dants.

for SchedulesA, B, C, D, E, F and G for descriptions of tax-

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able property.

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The sibling tax rate is applicable for transfers to: Brothers

or half-brothers, sisters or half-sisters; persons having at

Generally, valuation is based on the fair market value as of

the decedent’s date of death. Special rules apply to the val-

least one parent in common with the decedent, either by

uation of life estates and future interests created by a dece-

blood or by adoption. Transfers between stepsiblings are

dent. See the instructions for Schedules K nd M for more

subject to tax at the collateral rate.

information.

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For estates of decedents dying on or after Jan. 1, 1995,

The collateral tax rate is applicable for transfers to all other

special rules exist for the valuation of a trust established for

beneficiaries. This includes but is not limited to transfers to

the sole use of the surviving spouse. See the instructions

or for the benefit of aunts, uncles, cousins, nieces,

for Schedule O for further information.

nephews, friends,

sister-in-law, brother-in-law, pets and

entities not classified as a charity.

Special rules also apply to the valuation of farmland. See

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the instructions for Schedule A for further information con-

cerning the special farm use valuation and agriculture

Transfers to exempt charitable organizations, exempt insti-

exemptions.

tutions and government entities are exempt from tax.

It is important to note that Pennsylvania does not have a

six-month alternate valuation date similar to that found in

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the Internal Revenue Code.

If the decedent died testate or had maintained an inter-vivos

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(living) trust, a copy of the will and/or trust document must be

submitted with the return.Additional verification or documen-

Funeral expenses, administrative costs and debts owed by

tationoncertainassetsordeductionsmayberequiredbythe

the decedent at the time of death are deductions allowed

Department of Revenue to complete the review of this form.

against the inheritance tax liability. See the instructions for

The Department will request by letter, telephone, or e-mail

Schedules H and I for descriptions of allowable deductions.

the information needed. Failure to provide the information

will result in a delay of the processing of the return, or in the

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issuance of an unfavorable assessment.

The law in effect at the date of death is what governs the

Any supplemental information which the estate representa-

tax rate. The following information is based on a date of

tive considers confidential should be submitted directly to:

death on or after July 1, 2000. Historical rates are located

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on page 8.

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Any asset passing to a decedent’s spouse is taxed at 0 per-

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cent. No common-law marriage contracted after Jan. 1,

Include a statement that the documents are not part of the

2005 shall be valid. Common-law marriages otherwise law-

ful and contracted on or before Jan. 1, 2005 will be recog-

public record. Confidential documents need not be

nized when proved with sufficient evidence of its existence.

attached to the return filed with the Register of Wills.

If satisfactory evidence of the common-law marriage does

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not exist or the contract came into existence after Jan. 1,

Any person who willfully makes a false return or report

2005 transfers to the surviving common-law spouse are

commits a misdemeanor of the third degree, and fined

taxable at the collateral, or 15 percent rate.

twenty-five percent of the tax due or $1,000, whichever is

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less.

Transfers from the estate of a child age 21 or younger to

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the child’s natural parent, adoptive parent or stepparent are

Tax on property transfered is due within nine months of the

subject to a zero tax rate.

decedent’s death.

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The granting of an extension to file the

For dates of death on or after January 1, 2020, transfers to

tax return does not extend the time for payment of the

or for the use of a child twenty-one years of age or younger

tax ultimately found to be due.

from a natural parent, an adoptive parent or a stepparent of

A 5 percent discount is allowed on the tax paid within three

the child are subject to a zero tax rate.

LiealTaxRateecet

months of the decedent’s death. No discount applies to any

amount that may be subsequently refunded.

The lineal tax rate is applicable for transfers to:

Grandfather, grandmother, father, mother, children, un-

The discount is capped at 5 percent of the total tax due. In

remarried wife and husband or widower of a child, and lin-

order to calculate discount amount:

eal descendants. “Children” includes natural children

• If an underpayment was made, divide the payment

whether or not they have been adopted by others, adopted

made by 0.95. Example: tax due is $150, a payment

children and stepchildren. “Lineal descendants” includes all

made in the discount period is $100; $100.00/0.95 =

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$105.26 is the total of the payment and discount.

Overpayment section on Page 3 of the REV-1500. If this

• If the correct amount or overpayment was made, multi-

oval is checked, the estate is not required to submit a sep-

ply the total tax due by 5 percent to calculate discount.

arate application for refund. The department will issue a

Example: total tax due is $200; $200x0.05 = $10 is the

refund check approximately six weeks after the return pro-

discount amount.

cessing is completed. If the refund oval was not checked

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All checks must be made payable to

when the tax return was filed, an “Application for Refund of

Pennsylvania Inheritance/Estate Tax” (REV-1313) must be

“Register of Wills, Agent” and presented to the

filed to request a refund of an existing tax credit reflected

Register of Wills of the county where the decedent resided.

on an official assessment notice. Refund applications

The commonwealth places no limitation on tax liability until

should be directed to:

a proper and complete return is made and the return is

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assessed by the Department of Revenue.

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A prepayment of tax may be made at the

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Register of Wills before the REV-1500 is filed. In writ-

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ing, supply the Register with the decedent’s full name, date

of death and social security number along with the prepay-

The application for refund period is three years. (See

ment.

Section 2181(d) of the 1991 Act, 72 P.S. § 9181(d)).

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Should you believe that a refund is due as the result of an

Interest is charged beginning with the first day of delin-

issue which had not previously been raised, and where the

quency, or nine months and one day from the date of death,

statutory appeal provisions of Section 2186(a) of the 1991

to the date of payment. The applicable interest rates (REV-

Act, as amended, have expired, a petition for refund may

1611) can be found by visiting the department’s online serv-

be filed with the Board of Appeals provided that all tax,

ices at wwweveueagv

.

penalty and interest assessed were paid in full. Visit

An interest and penalty calculator is available at

wwwbadfaealsstateaus

for more information.

wwwdesevicesstateaus

.

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A personal representative or

transferee who acquires

knowledge of additional assets, transfers or deductions at

The tax imposed, together with any interest thereon, con-

stitute a lien upon real property, which remains in effect

any time after the original return has been filed must

until the tax and interest are paid in full.

promptly file a supplemental

return. The supplemental

return should include only the additional assets, transfers

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or deductions.

The law provides for the filing of a citation with the Court of

Do not repeat any assets or deductions reported on

Common Pleas, Orphans’ Court Division, to compel the fil-

an original return or prior supplemental return.

ing of the tax return or the payment of tax. It may be direct-

ed to the personal representative or transferee and may

A supplemental return may not be used to adjust or correct

commence nine months after the date of death. The cita-

a previously filed return. If a correction is needed for an

tion process may result in an order directing filing and pay-

asset that was reported on a return, see “Administrative

ment, a contempt citation, and ultimately, additional fines

Corrections” below on how to request an administrative

and imprisonment for failure to comply with the require-

correction. If there is an error contained in an assessed

ments of the Inheritance and Estate Tax Act. See Section

return that must be resolved see “Administrative

2176 of the Act of August 4, 1991, P.L. 97, No. 22 (72 P.S.

Corrections” or “Protest, Notice orAppeal”. It is important to

§9176).

note that it is not possible to file an amended inheritance

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tax return. When the value of an asset or deduction has

been established by assessment notice from the depart-

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ment, any discrepancy must be resolved either through the

After a return is filed, the Department of Revenue issues a

notice setting forth its valuation of the estate assets, allow-

refund process or through the appeal process.

able deductions and inheritance tax due.

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Notice of potential tax liabilities based on jointly held

Obvious factual errors discovered on the assessment may

assets, trust assets, or non-probate property are identified

be corrected administratively. Examples of correctable

through the use of an eight digit number beginning with the

errors include those made by the transposing of figures,

two digits representing the year in which the notice is orig-

mathematical errors, miscalculations and obvious duplica-

inally issued. For example, all notices issued in 2020 will be

tion of assets. The estate must report such errors to the

numbered 20000001, 20000002, etc. Further information

Department of Revenue by a letter which identifies the

concerning the Transferee ID system may be obtained by

alleged error and the proposed correction.Any documenta-

contacting the Inheritance Tax Division at 717-787-8327.

tion which supports the need

for an adjustment to

the

record must be submitted. Requests for administrative cor-

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Depending on the complexity of the

rection should be directed to:

return, an assessment may take three to six months

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from the date it was filed with the Register of Wills.

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If tax is overpaid when the return is filed, a refund may be

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requested by selecting the appropriate oval in the

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amilywedusiessemti

LINE INSTRUCTIONS

Fill in the oval to indicate the decedent owned business

interest that

qualifies for the Family-Owned Business

Exemption for dates of death on or after July 1, 2013.

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If this oval is selected you must include

Realtate(hedule

Schedule C-SB, REV-571.

If the estate is required to complete REV-1502 ScheduleA,

usiessassets

enter the amount from the Total line of REV-1502 Schedule

Fill in the oval if the decedent owned any business interest,

A on Line 1 of the REV-1500.

including a sole-proprietorship held by the decedent.

If the estate is not required to complete REV-1502

ecedetitaiedLivigTust

Schedule A, leave Line 1 of the REV-1500 blank.

Fill in the oval if the decedent, during his or her lifetime,

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transferred property to a trust and retained or reserved an

interest or a power of appointment.Acopy of the instrument

cksadds(hedule

must be attached to the return when filed.

If the estate is required to complete REV-1503 Schedule B,

utueteestmmise

enter the amount from the total line of REV-1503 Schedule

B on Line 2 of the REV-1500.

Fill in the oval to request a compromise if the rate of tax

which will be applicable when a future interest vests cannot

If the estate is not required to complete REV-1503

be established with certainty.This oval is applicable only for

Schedule B, leave Line 2 of the REV-1500 blank.

an estate where the decedent died on or after Dec. 13,

1982.

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If this oval is selected you must include

lselyeldatiteshile

Schedule M, REV-1647.

ietshi(hedule

efealectifusalTust

If the estate is required to complete REV-1504 Schedule C,

Fill in the oval if the decedent created a trust or other simi-

enter the amount from the Total line of REV-1504 Schedule

lar agreement which qualifies as a sole use trust. The

C on Line 3 of the REV-1500.

estate may choose to defer the tax or elect to tax the trust

If the estate is

not required to complete

REV-1504

or other similar arrangement in this estate.

Schedule C, leave Line 3 of the REV-1500 blank.

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If this oval is selected you must include

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Schedule O, REV-1649.

Ttalumbeffeesitxes

tgagesadtesReceivable(hedule

Enter the number of safe deposit boxes held by the dece-

If the estate is required to complete REV-1507 Schedule D,

dent alone or jointly (except with a surviving spouse) that

enter the amount from the Total line of REV-1507 Schedule

must be inventoried. For more information, see REV-584,

D on Line 4 of the REV-1500.

PA Inheritance Tax & Safe Deposit Boxes brochure and

If the estate is

not required to complete

REV-1507

REV-485, Safe Deposit Box Inventory.

Schedule D, leave Line 4 of the REV-1500 blank.

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All requests for information and documentation from the

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department, including the tax assessment will be forwarded

to this individual.

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ety(hedule

If the estate is required to complete REV-1508 Schedule E,

Enter the first name and last name of the personal repre-

enter the amount from the Total line of REV-1508 Schedule

sentative of the estate.

E on Line 5 of the REV-1500.

eumbe

If the estate is not required to complete REV-1508

Enter the daytime telephone number for the personal rep-

resentative of the estate.

Schedule E, leave Line 5 of the REV-1500 blank.

ddess

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Enter the complete address of the personal representative

of the estate.

itlywedety(hedule

ailddess

If the estate is required to complete REV-1509 Schedule F,

enter the amount from the Total line of REV-1509 Schedule

Enter the email address of the personal representative of

F on Line 6 of the REV-1500.

the estate.

If the estate is not required to complete REV-1509

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Schedule F, leave Line 6 of the REV-1500 blank.

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The Separate Billing Requested oval

ecedet’scialcuityumbe

must be checked to request the department to issue

Enter the nine-digit Social Security number of the decedent.

a separate tax notice for tax due on jointly owned assets

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