Estate Tax Form M706 Instructions 2004 - FormSend

Line instructions (continued)Line 14PenaltiesThe regular due date for filing the Minnesotareturn and paying the total estate taxowed is nine months after the decedent’sdate of death. If the return is filed or the taxis paid after the due date—unless you’repaying estate tax in installments—the estateis subject to penalties.Late payment. A penalty is due if youdon’t pay the total tax by the regular duedate. The penalty is 6 percent of the unpaidtax.If you file your return after the due dateand you don’t pay the tax as reported onyour return, an additional 5 percentpenalty is due on the unpaid tax.Late filing. If you file after the regular duedate—or after the approved extended duedate—and you owe tax, you must pay anadditional penalty for filing late. The latefiling penalty is 5 percent of the unpaid tax.Extended delinquency. An additionalpenalty is due if the return is not filedwithin 30 days after the department sends awritten demand. The penalty is 5 percent ofthe tax not paid prior to the demand.(M.S. 289A.60)Line 15InterestYou must pay interest on any unpaid taxand penalty from the regular due date untilthe total is paid. Interest accrues even if thedeadline for filing the return or paying thetax has been extended or the estate tax isbeing paid in installments.The rate of interest may change from yearto year. (M.S. 270.75)To determine the interest to enter on line15, complete the worksheet on the back ofForm M706 or, if you’re paying aninstallment, see the section Paying tax ininstallments on page 2.(M.S. 289A.55)Line 16Amount dueIf the estate owes Minnesota estate tax,penalty or interest, you may pay theamount electronically or by check. SeePayment options on page 2.Line 18Installment paymentsIf you’re paying the federal estate tax ininstallments and you wish to pay theMinnesota estate tax in installments, checkthe box on line 18.You must attach to Form M706 a copy ofthe document you received from the IRSapproving your federal installmentpayment plan.Signature of the executorThe executor of the estate must sign thecompleted Form M706. (M.S. 289A.10,subd. 1)If more than one executor was appointedby the Probate Court or Probate Registrar,all appointed executors must sign the form.If you wish to grant power of attorney tosomeone, you must complete the power ofattorney form on the back of Form M706and check the box after your signature. Formore details, see the next section.Power of AttorneyIf you’re the executor or personal representativeof the decedent’s estate, you maydesignate another person to act on yourbehalf or perform any act you can performwith respect to the estate tax on thedecedent’s estate when dealing with thedepartment. This is done by grantingpower of attorney to the person.The department is prohibited by law fromdisclosing any information it may have inits records about the decedent’s estateexcept to persons who have been grantedpower of attorney and to the decedent’sheirs, next of kin or person who holds aninterest in any of the decedent’s property.If you wish, you may complete the sectionon the back of Form M706 to grant powerof attorney to someone. You may selectsome or all of the specific powers providedfor purposes of dealing with the departmentor grant whatever powers you wish atthe bottom of the form.Stop writing checksPay electronically!It’s Secure, Easy, Convenient, Freewww.taxes.state.mn.us6