Kenneth Vercammen, Esq. handles Probate, Estate Administration and Wills. He was a speaker at the American Bar Association ABA Annual meeting and is Co-Chair of the Probate & Estate Planning Committee. To schedule a confidential consultation, email us at VercammenAppointments@NJlaws.com or call.
Kenneth Vercammen & Associates, P.C.
2053 Woodbridge Ave.
Edison, NJ 08817
(732) 572-0500
www.njlaws.com

Monday, July 21, 2014

18:26-8.8 Time limit for assessment

18:26-8.8 Time limit for assessment

   (a) Upon the expiration of a period of 15 years after the date of death of a decedent, no proceeding may be instituted to assess or collect any tax, interest or penalties due this State for Inheritance Tax purposes against any estate, executor, administrator, trustee, grantee, donee, vendee, devisee, legatee, heir, next of kin or beneficiary. However, this does not affect any rights to collection which this State has by reason of filing with the Clerk of the Superior Court, a Certificate of Debt, Decree of Judgment for the New Jersey Inheritance Tax, including any interest and penalties; nor does the period of limitation affect the rights of this State to assess and collect the New Jersey Inheritance Tax including any interest and penalties under the terms of a bond or their agreement securing the payment of such tax, interest and penalties.

(b) For estates with date of death on or after July 1, 1993, no assessment of additional inheritance tax shall be made after the expiration of more than four years from the date of the filing of an inheritance tax return except in the following cases:

1. The return is false or fraudulent with the intent to evade tax;

2. If, before the expiration of the period prescribed in the subsection for the assessment of additional tax a taxpayer consents in writing that such period may be extended, the amount of such additional tax may be determined at any time within such period. The period so extended may be further extended by subsequent consents in writing made before the expiration of the extended period;

3. Tax on executory devises, contingent future interests and estates subject to a power of appointment is assessed pursuant to the provisions of N.J.A.C. 18:26-8.12, 8.21, 8.24 and 9.16;

4. If the inheritance tax return is amended by the taxpayer to include additional property of a decedent, the assessment of tax on the additional property shall not be made after four years from the date of the filing of the amended return;

5. The assessment of tax in an estate passing to a beneficiary discovered after the filing of an inheritance tax return shall not be made after four years from the date of the discovery of the beneficiary and receipt of notification by the Division; or

6. If a decedent's interest in property, or the value thereof as of the decedent's date of death, has not been determined at the time of the filing of an inheritance tax return due to litigation or controversy, the assessment of tax shall be made within four years after the decedent's interest in the property, or the value thereof on the decedent's date of death, has been definitely established and the Division receives notification.

(c) Returns not falling into the six categories in (b) above shall be subject to the provisions of (a) above.

(d) For the purposes of (b) above, an inheritance tax return filed before the corresponding day of the eighth month following the decedent's date of death shall be considered as filed on that day.

18:26-8.7 Assessment notices; required statements

18:26-8.7 Assessment notices; required statements

   (a) Any assessment notice changing the tax as reported by the taxpayer shall contain the statements required pursuant to subsections a, b, and d of N.J.S.A. 54:48-6.

(b) An arbitrary assessment of tax made pursuant to the provisions of N.J.S.A. 54:49-5 shall include a statement of the reason for the assessment, the action or omissions of the taxpayer which require the assessment, or the nature of the documentary evidence, if any, which has prompted the assessment, including the following:

1. In the case of an underpayment or failure of payment, a statement of the corresponding alleged correct payment and the correct date of payment; and

2. In the case of a failure to file a return, a statement of the alleged filing date.

(c) The lack of any statement otherwise required to be included with a notice pursuant to (a) above, or the lack of any description otherwise required pursuant to (b) above, shall not invalidate such notice.

18:26-8.6 Final assessment

18:26-8.6 Final assessment

   N.J.S.A. 54:34-12 provides for an assessment of the tax by the Division. Upon receipt of the return and payment of any applicable tax, the Transfer Inheritance Tax Branch will advise the estate representative as to whether the return filed by the estate and the tax calculation are accepted, in which case the Branch's notification will be the assessment. In the event that the Branch decides to further examine the return, it will subsequently notify the estate representative as to the amount of tax assessed.