Probate & Trust Law Section Conference Manual ... - Minnesota CLE

“break” for when an IRC §§6161 or 6163 extension is granted assessing
interest at a rate of 4%, rather than the usual 6%.
d. The Fiduciary may negotiate abatement of penalties due to extenuating
circumstances related to the late filing or late payment of decedent’s income
taxes. An abatement request can be made any time after the tax has been
assessed. Examples of appropriate reasons for the request include decedent’s
mental or physical health concerns, lack of education or aptitude, high level of
complexity of tax or compliance issues, unavoidable absence, inability to obtain
necessary records, extraordinary circumstances involved with administering
decedent’s estate. These reasons must show that decedent (or the Fiduciary) was
prevented from making timely tax filings and payments. The request should tell
the taxpayer’s (Fiduciary’s) story with impact, including his/her plan for
compliance and a sincere acknowledgement of rectifying the issue.
5. Other Minnesota considerations
a. Property tax refunds. A surviving spouse or dependent of decedent may file for a
property tax refund. The personal representative or other fiduciary may not claim
the refund.
b. Minn. Stat. §§289A.08, Subd. 1(b) and 289A.31, Subd. 1(1) set forth the personal
representative’s statutory duty to file any past due unfiled income tax returns and
to pay decedent’s income taxes due.
c. Pursuant to Minn. Stat. §270C.58, Subd. 3, a personal representative can be
assessed for decedent’s tax liabilities.
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