Chapter 5703-21 Estate Tax

5703-21-01 Requirements for filing a preliminary notice, an estimate of property, and estate tax return for a resident decedent's nontaxable estate.

Pursuant to Sections 5731.20 and 5731.45 of the Revised Code, the person or corporation required to file an estate tax return for a resident decedent's nontaxable estate as defined in Sections 5731.01 to 5731.51 of the Revised Code, shall file an appropriate Ohio Estate Tax Resident Decedent's Nontaxable Estimate of Property on the form prescribed by the Tax Commissioner in duplicate in the probate court exercising jurisdiction over the resident decedent's estate. Thereupon the probate court shall transmit forthwith one copy to the Tax Commissioner. The filing of the Ohio Estate Tax Resident Decedent's Nontaxable Estimate of Property shall be in lieu of an Ohio Preliminary Notice and Estate Tax Return. If the form is filed as prescribed, no other estimate, notice, or Ohio Estate Tax Return is required to be filed.

For estates resulting from deaths occurring on or after January 1, 1976, the Tax Commissioner will not issue a Certificate of Determination of Final Estate Tax Liability. The Ohio Estate Tax Resident Decedent's Nontaxable Estimate of Property, if properly completed and filed as prescribed, will be considered final pursuant to Section 5731.20(B) , Revised Code, if the Tax Commissioner fails to file Exceptions within three months of his receipt of the prescribed form.

Further, a Certificate of Determination of Final Estate Tax Liability will not be issued for resident decedents' nontaxable estates resulting from deaths occurring after June 30, 1968 and before January 1, 1976. An Ohio Estate Tax Resident Decedent's Nontaxable Estimate of Property, if properly completed and filed as prescribed, will be accepted as filed. However, estates resulting from deaths occurring after June 30, 1968 and before January 1, 1976 remain open for audit or assessment of deficiencies for a period of three years from the date of the filing of the proper Estate Tax form.

A Preliminary Notice, an Ohio Estate Tax Return and, when appropriate, an Ohio Estate Tax Supplemental Return must be filed if the resident decedent's estate is taxable as defined in Sections 5731.01 to 5731.51 of the Revised Code.

For resident decedents' nontaxable estates, all filings made on or after January 1, 1976, must be made on the appropriate Ohio Estate Tax Resident Decedent's Nontaxable Estimate of Property form prescribed by the Tax Commissioner.

(former TX-51-01); Eff (Amended) 1-1-76; 9-15-76
Rule promulgated under: RC 5703.14

5703-21-02 Postponement of payment of estate tax attributable to reversionary or remainder interests.

If the executor, administrator, trustee, or other person or corporation liable for the tax has elected to postpone payment pursuant to Section 5731.25 , Revised Code, he shall deposit with the county treasurer to whom said tax is payable, cash or bonds for the purpose of securing the payment of tax on the reversionary or remainder interest. A deposit of bonds shall be of bonds of the United States, of this state, or any municipal corporation or county therein, and shall be in an amount to be determined by the Tax Commissioner, which amount shall not be less than one and one half times the tax computed to be due on the reversionary or remainder interest. Such security and the sufficiency thereof shall be accepted by the county treasurer only after approval by the Tax Commissioner. The deposit shall be held by said treasurer to the credit of the estate until the ultimate tax and interest are paid on the reversionary or remainder interest pursuant to Section 5731.25 , Revised Code. Six months from the termination of the precedent interest, the rate of interest prescribed in Section 5731.23 , Revised Code, shall apply to any due and unpaid tax. The income from such deposits, when received by such treasurer, shall be paid over to the executor, administrator, trustee or other person or corporation liable for the tax during the continuance of the trust estate. The treasurer shall, with the approval of the Tax Commissioner, permit withdrawals of such securities, or part thereof, upon the deposit with him of other such securities approved by the Tax Commissioner, so as to maintain the proper amount of such deposits, until the final payment of the tax and interest.

(former TX-51-02); Eff 10-11-76
Rule promulgated under: RC 5703.14

5703-21-03 Election notification and annual report for qualified farm property.

(A) The representative and qualified heirs of a decedent who elect to value farm property of the decedent at its qualified use value shall file an election notification on a form prescribed by the tax commissioner. The notification shall be filed with the estate tax return filed pursuant to section 5731.21 or 5731.26 of the Revised Code.

(B) The tax commissioner or the commissioner's agent may inspect the farm property to verify the accuracy of the information presented in the notification as a condition precedent to the approval of the election, unless an application has been filed pursuant to section 5713.31 of the Revised Code and approved by the county auditor. If approved, the commissioner or the commissioner's agent shall be permitted to inspect the property from time to time to verify the continuing qualified use. Refusal of such inspection by the qualified heirs or person in possession of the property constitutes cause for imposition of the additional tax mandated by division (E) of section 5731.011 of the Revised Code.

(C) If the qualified farm property is transferred to a person other than a qualified heir or if the property ceases to be used exclusively for agriculture, the commissioner shall be notified by the qualified heirs of such fact within nine months after the date of such transfer or cessation of qualified use.

(D) The qualified heirs shall file for three years a report with the commissioner, on a form prescribed by the commissioner, to establish that the qualified farm property has not been disposed of other than to a qualified heir and has not ceased to be used for a qualified use.

The first report shall be filed no sooner than sixty days before and no later than the date that is two years after the date of the decedent's death. A report shall be filed within the same time period in each of the two following years.

Failure to file timely any report required by this paragraph constitutes cause for imposition of the additional tax mandated by division (E) of section 5731.011 of the Revised Code.

Eff 4-17-84
Rule promulgated under: RC 5703.14
Rule amplifies: RC 5703.14 , 5731.011 , 5731.21 , 5731.26 , 5731.37

5703-21-04 Estate tax: extensions of time for payment for undue hardship.

(A) An application for an extension of time for payment of estate tax liability for undue hardship, as defined in division (A) of section 5731.25 of the Revised Code, shall be filed on a form prescribed by the tax commissioner. The applicant shall state the amount requested for extension and the length of time of the extension requested, not to exceed one year. The application shall include a detailed explanation of the undue hardship to the estate that would result if the requested extension is denied.

(B) The personal representative who is required to file the estate tax return for the decedent's estate may file an application for an extension of time to pay. "Personal representative" means the executor, executrix, administrator, or administratrix of the estate. If no executor, executrix, administrator or administratrix is appointed, "personal representative" means any person in actual or constructive possession of any property of the decedent. Any authorized attorney or other agent holding a power of attorney may apply for an extension on behalf of the personal representative. The personal representative or his representative must sign the application form.

(C) The amount of the tax for which an extension is granted, with any interest or other additions to that amount, shall be paid on or before the expiration of the period of the extension without the necessity of notice or demand from the tax commissioner.

(D) The granting of an extension under this rule will not relieve the estate from liability for the payment of interest on the amount allowed during the period of extension.

(E) The application for an extension under this rule shall be filed with the tax commissioner not less than forty-five days prior to the expiration of nine months from the date of the decedent's death. The granting of an extension under this rule will not relieve the personal representative of the duty to file the estate tax return on or before the due date as required by section 5731.21 of the Revised Code.

(F) In the case of a continuing undue hardship, the personal representative may apply for an additional extension. The application for an additional extension shall be filed in the same manner as the original application and must be filed not less than thirty days before the expiration of the previous extension. The period of each extension shall not exceed one year and the total of all allowed extensions shall not exceed fourteen years.

Eff 1-20-87
Rule promulgated under: RC 5703.14
Rule authorized by: RC 5703.05
Rule amplifies: RC 5731.25