Report of Estate Tax Examination Changes

Transcription

1 Form 1273 Department of the Treasury - Internal Revenue Service (Rev. 12/05) Report of Estate Tax Examination Changes Estate of Social Security Number Date of Death N CAROLINA DECEDENT thAD V Name of Person With Whom Findings Were Discussed: Agreement Secured ATTORNEY [x] Yes [ ] No 1 Tentative taxable estate shown on return or as previously adjusted 26,347, Increase <decrease> in tentative taxable estate <147,746.09> 3a Tentative taxable estate as corrected (line 1 plus (minus) line 2) 26,200, Prior Assessment As Corrected 3b State Death Tax Deduction 3c Taxable estate as corrected (line 3a minus line 3b) 26,347, ,200, Adjusted Taxable Gifts 5 Total 26,347, ,200, Tentative Tax 14,491, ,410, Aggregate gift taxes payable (after Dec. 31, 1976) 8 Subtract line 7 from line 6 14,491, ,410, a Unified Credit from Table 220, , b Unused Unified Credit of deceased spouse (after 2010) 9c Unified Credit before Adjustment 220, , Adjustment to Unified Credit 11 Subtract line 10 from line 9c 220, , Subtract line 11 from line 8 (not less than zero) 14,270, ,189, Credit for State death taxes 761, , Tentatively allowed Submit evidence by 14 Subtract line 13 from line 12 13,509, ,424, Credit for Federal gift taxes on pre-1977 gifts 16 Credit for foreign death taxes (statutory) 17 Credit for tax on prior transfers 18 Credit for foreign death taxes (special treaty) 19 Total credits (add lines 15, 16, 17 and 18) 20 Net estate tax payable 13,509, ,424, Generation-skipping transfer taxes (Schedule R, Part 2, line 12) 22 Section 4980A - increased estate taxes (Schedule S) 23 Total transfer taxes (add lines 20, 21 and 22) 13,509, ,424, Total tranfer tax previously assessed 13,509, Total transfer tax - Increase <decrease> (difference between line 23 and line 24) <85,126.52> 26 Penalties previously assessed Penalties as corrected Net Penalties - Increase <decrease> (difference between line 26 and line 27) Net tax and penalties payable - Increase <decrease> (add line 25 and line 28) <85,126.52> Examiner's Signature Area Date Form 1273 (Rev. 12/05) Page 1

2 Form 6180 (Rev. 4/99) Department of the Treasury - Internal Revenue Service Line Adjustment -- Estate Tax Estate of Social Security Number Date of Death N CAROLINA DECEDENT thAD V Prior Assessment Change As Corrected 1 Schedule A, Real Estate 650, , Schedule B, Stocks and Bonds 4,000, ,000, Schedule C, Mortgages, Notes, and Cash 1,425, ,425, Schedule D, Insurance on the Decedent's Life Schedule E - Joint Owned Property Schedule F, Other Miscellaneous Property 22,425, ,425, Schedule G, Transfers During Decedent's Life Schedule H, Powers of Appointment Schedule I, Annuities Gross Estate 28,500, ,500, Sch. U, Qua. Conservation Easement Exclusion Gross Estate less exclusion 28,500, ,500, Schedule J - Funeral & Administrative Expenses 1,797, , ,944, Schedule K, Debts of Decedent 205, , Schedule K, Mortgages and Liens Total of Schedules J and K (Items 13, 14, & 15) 2,002, , ,149, Allowable deductions from Schedules J and K 2,002, , ,149, Schedule L, Net Losses During Administration Sch. L, Expenses, Prop. Not Subject to Claims Total (Add items 17, 18, & 19) 2,002, , ,149, Schedule M, Marital Deduction Schedule O, Charitable Bequests 150, , ESOP Deduction Sch. T, Qua. Family-Owned Business Int. Ded Total Allowable Deductions (Items 20 to 24) 2,152, , ,299, Tentative Taxable Estate (Subtract line 25 from line 12) 26,347, <147,746.09> 26,200, Remarks Form 6180 (Rev. 4/99) Page 2

3 Form 886A (Rev. 1/99) Department of the Treasury - Internal Revenue Service Explanation of Items Estate of Social Security Number Date of Death N CAROLINA DECEDENT thAD V Schedule J, Funeral & Administrative Expenses Description Prior Assessment As Corrected B-4 b. Interest on Federal estate tax 84, , B-4 c. Interest on North Carolina estate tax 502, , Total of these items 587, , Prior Assessment 587, Change to schedule 147, Form 886A Page 3

4 Date of Death Installment due date Computation of Estate Tax Due With Return and Annual Installment V (As provided by the Limitations under Section 6166 of the Internal Revenue Code) Taxpayer identification number Name of decedent N CAROLINA DECEDENT thAD Total Transfer Tax Deferred portion Deferred portion Nondeferred portion Not Subject to 4% rate Subject to 4% rate 13,424, ,215, , ,768, Additional Tax Deferred portion Deferred portion Nondeferred portion Not Subject to 4% rate Subject to 4% rate <85,126.52> 0.00 Estate tax return Request for installment privileges Audit Action completed [X] Selected for audit [X] Accepted [X] Yes [ ] Not selected for audit [ ] Rejected [ ] No Line Item Amount 1 Value of Decedent's Closely Held Business 21,500, Name of Business 6166 Business 2 a. Adjusted Gross Estate (IRC 6166(b)(8) 10 yr. Election) 0.00 b. Adjusted Gross Estate (IRC yr. Election) 27,085, Ratio of Line 1 to line 2a or line 2b (Divide Line 1 by line 2a or line 2b) % 4 Total Transfer Taxes Payable (Line 24 Form 706) 13,424, a. Net Estate Taxes (Line 21 Form 706) 13,424, b. Net Generation Skipping Tax (Line 22 Form 706) 0.00 c. 4980A Tax (Line 23 Form 706) Percentage of Generation Skipping Tax Eligible for Deferral % 6 Amount of Line 4b deferred (Line 3 x line 4b) (or smaller amount elected by estate) Amount of Line 4a deferred (Line 3 x line 4a) (or smaller amount elected by estate) 10,656, Total Deferred Tax (Line 6 plus line 7) 10,656, A and/or Generation Skipping Tax due with return 0.00 (Line 4b plus line 4c minus line 6) 10 Estate Tax Due with Return (Non-Deferred) (line 4a minus line 7) 2,768, Total Non-Deferred Tax due with return (line 9 plus line 10) 2,768, Total amount of tax paid with return 2,187, Balance Non-Deferred Due (Line 11 minus line 12) (But not less than zero) 580, Advance Payment of Deferred Tax with Return (Excess Paid Above Non-Deferred) 0.00 (Line12 minus line 11) (But not less than zero) 15 Balance of deferred tax after application of Advance Payment (Line 8 minus line 14) 10,656, Annual Installment (10% of line 8) 1,065, (If Estate elects less than 10 installments adjust accordingly) 17 a. Due with return (6166(b)(8) 10 yr. installment) (Line 10 plus line 16) 0.00 b. Due with return ( yr. Election) (Line 10) 2,768, a. Annual Installment yr. Election (Line 16) 1,065, b. Annual Installment yr. Election (Line 16) 0.00 Form 4349 (Rev. 1/92) Department of the Treasury - Internal Revenue Service

5 Estate of: N CAROLINA DECEDENT thAD, DD: File Name: C:\NC Comps 2001 DD - 4thAD Inter-Est Version 3.00, Release 127f, (Standard Output) Date and time of run: Monday, July 15, 2013, 12:29 PM Inflation factor used for this computation % LIMIT TO SDTC ELECTED Fixed Dollar Limit to SDTC 0.00 Use State Interest Computation Option Selected State: North Carolina Estimated Last Payment 0.00 Limit Used for State 765, Total Limit to State Death Tax Credit 765, Maximum Computed State Death Tax Credit 3,658, CHARITABLE DEDUCTION SECTION Specific Bequests to Charity 150, Percent of Residue to Charity % Charitable Bequests from Residue 0.00 Charitable Deduction 150, MAIN PRINTOUT SECTION Gross Estate 28,500, Sch. JK&L (before interrelated) 1,415, Int, Federal 81, Int, North Carolina 653, Debts & Expenses 2,149, Marital Deduction 0.00 Charitable Deduction 150, Total Deductions 2,299, Taxable Estate 26,200, Adjusted Taxable Gifts 0.00 Total Amount Drawing Tax 26,200, Tentative Tax 14,410, Aggregate Gift Tax Payable 0.00 Tax before Unified Credit 14,410, Unified Credit from Table 220, Adjustment to Unified Credit 0.00 Net Unified Credit 220, Tax before SDTC 14,189, State Death Tax Credit 765, Net Tax after State Death Tax Credit 13,424, Gift Tax Credit 0.00 Foreign Death Tax Credit (Statutory) 0.00 Prior Transfer Credit 0.00 Foreign Death Tax Credit (Treaty) 0.00 Total Credits 0.00 Estate Tax 13,424, Generation Skipping Transfer Tax 0.00 Total Federal Tax 13,424, FEDERAL INTEREST OPTION SELECTED Interest Table File: C:\Program Files (x86)\est3\federal.it4 Interest Table Description: Federal (RProc 95-17)(1/13) Special Interest Rate Used (old): % Special Interest Rate Used (new): % INTEREST FACTORS USED Regular (100%) Special (old) Refund Pd # 1 c % % %

6 Estate of: N CAROLINA DECEDENT thAD, DD: Page 2 Pd # 2 c % % % Pd # 3 c % % % Pd # 4 c % % % Pd # 5 c % % % Regular (45%) Special (new) Pd # 1 c % % Pd # 2 c % % Pd # 3 c % % Pd # 4 c % % Pd # 5 c % % Sec Installment Option Elected Closely Held Business Amount 21,500, Fed. Gross Estate 28,500, JK&L before Int. <1,415,000.00> Adjusted Gross Estate (6166) 27,085, Qualifying Percentage % Number of Regular Tax Payments 10 Years Installment Tax Payments Delayed 5 Total Qualified Tax 10,656, Tax Qualified for Special Rate 441, Other Qualified Tax 10,215, Tax Not Qualified 2,768, Qualified Tax which was Extended 10,656, PART 1 Date Tax Pmt. Int. Pmt. Due Date ,187, Da P Pd # , Ba Pd # , Ba Pd # , , Ac Pd # , Ba Pd # Ba Sec Flags First Flag, Principal Allocation: A = Deficiency or Interim Payment with Normal Allocation B = Installment Date with Only Interest Payment Due C = Installment Date with Tax Payment and Interest Payment Due D = Payment on or Before Date Return was Filed E = All tax moved to Non-Qualified (Election Terminated) Second Flag, Interest Allocation: a = Balance moved to Non-Qualified (Installment Date or Termination) b = Allocate to All Interest Equally (Deficiency Pmt, Extra Pmt) c = Allocate to Non-Qualified then Qualified (Special Direction) d = Allocate to Non-Qua. then, Reg. Qua. then 4% Qua. (Special Dir.) e = Allocate to Amounts drawing Regular Rate First (Special Direction) SA = Special Allocation: Non-Qua. Tax, then Interest, then Qual. Tax All = All qualified tax draws interest at the same rate as the other qualified tax. P = Period entry for Interest on Penalty Computation PART 2 Starting Tax Interest Applied Balance Paid Balance To Balance Due Date 13,424, ,187, ,187, Pd # 1 11,236, , Pd # 2 11,236, , Pd # 3 11,236, , , ,049.76

7 Estate of: N CAROLINA DECEDENT thAD, DD: Page 3 Pd # 4 10,630, <7,435.58> 7, Pd # 5 10,623, , PART 3 Interest Total Amount Interest Drawing Int. Drawing Int. Factor Interest Period # 1 Qua. (4%) , % 8, Oth. Qua ,215, % 271, Non-Qua , % 34, Period # 2 Qua. (4%) , % 8, Oth. Qua ,215, % 212, Non-Qua. 63, , % 30, Period # 3 Qua. (4%) , % 4, Oth. Qua ,215, % 107, Non-Qua. 115, , % 16, Period # 4 Qua. (4%) 4, , % 4, Oth. Qua 100, ,290, % 108, Non-Qua % 0.00 Period # 5 Qua. (4%) , % 8, Oth. Qua ,183, % 294, Non-Qua % 0.00 Total Accrued Interest 1,112, NonQualified Interest while Sec (2%) active 81, Total Interest Deduction 81, STATE TAX COMPUTATION SECTION - North Carolina State Tax Computation based upon SDTC, All Computed State Tax 3,658, STATE INTEREST OPTION SELECTED Interest Table File: C:\Program Files (x86)\est3\n-carolina updated IT4 Interest Table Description: North Carolina (03/13) Special Interest Rate Used (old): % Special Interest Rate Used (new): % INTEREST FACTORS USED Regular (100%) Special (old) Refund Pd # 1 s % % % Pd # 2 s % % % Pd # 3 s % % % Pd # 4 s % % % Pd # 5 s % % % Regular (45%) Special (new) Pd # 1 s % % Pd # 2 s % % Pd # 3 s % % Pd # 4 s % % Pd # 5 s % % Sec Installment Option Elected Closely Held Business Amount 21,500, Fed. Gross Estate 28,500, JK&L before Int. <1,415,000.00> Adjusted Gross Estate (6166) 27,085,000.00

8 Estate of: N CAROLINA DECEDENT thAD, DD: Page 4 Qualifying Percentage % Number of Regular Tax Payments 10 Years Installment Tax Payments Delayed 5 Total Qualified Tax 2,904, Tax Qualified for Special Rate 33, Other Qualified Tax 2,871, Tax Not Qualified 754, Qualified Tax which was Extended 2,904, PART 1 Date Tax Pmt. Int. Pmt. Due Date , Da All P Pd # , Ba All Pd # , Ba All Pd # , , Ac All Pd # , Ba All Pd # Ba All Sec Flags First Flag, Principal Allocation: A = Deficiency or Interim Payment with Normal Allocation B = Installment Date with Only Interest Payment Due C = Installment Date with Tax Payment and Interest Payment Due D = Payment on or Before Date Return was Filed E = All tax moved to Non-Qualified (Election Terminated) Second Flag, Interest Allocation: a = Balance moved to Non-Qualified (Installment Date or Termination) b = Allocate to All Interest Equally (Deficiency Pmt, Extra Pmt) c = Allocate to Non-Qualified then Qualified (Special Direction) d = Allocate to Non-Qua. then, Reg. Qua. then 4% Qua. (Special Dir.) e = Allocate to Amounts drawing Regular Rate First (Special Direction) SA = Special Allocation: Non-Qua. Tax, then Interest, then Qual. Tax All = All qualified tax draws interest at the same rate as the other qualified tax. P = Period entry for Interest on Penalty Computation PART 2 Starting Tax Interest Applied Balance Paid Balance To Balance Due Date 3,658, , , Pd # 1 3,078, , Pd # 2 3,078, , Pd # 3 3,078, , , , Pd # 4 2,897, <3,866.17> 3, Pd # 5 2,893, , PART 3 Interest Total Amount Interest Drawing Int. Drawing Int. Factor Interest Period # 1 Qua. (4%) , % 1, Oth. Qua ,871, % 172, Non-Qua , % 10, Period # 2 Qua. (4%) , % 1, Oth. Qua ,871, % 153, Non-Qua , % 9, Period # 3 Qua. (4%) , % Oth. Qua ,871, % 75,318.75

9 Estate of: N CAROLINA DECEDENT thAD, DD: Page 5 Non-Qua , % 4, Period # 4 Qua. (4%) , % Oth. Qua ,864, % 68, Non-Qua % 0.00 Period # 5 Qua. (4%) , % 1, Oth. Qua ,860, % 152, Non-Qua % 0.00 Total Accrued Interest 653, Total Interest Deduction 653, LAST LINE OF PRINTOUT