Legal Question in Wills and Trusts in New Jersey
My aunt passed away in February 2009. My brother, sister and myself received proceeds of an annuity that she had. It was paid to us as individuals and did not pass through her estate.There were no Federal or New Jersey State taxes due on this.
In March of this year I as the executor, received an Estate Tax Deliquency notice from the state. A CPA completed an estate tax return and mailed it to the state at the end of April. I contacted the Inheritance Tax Department at the end of June to see what the status was and was told that it wasn't in the system yet. The CPA said that it was sent in and it is now going on six months. What should I do?
3 Answers from Attorneys
It sounds like you have a problem with your CPA.
Has he/she provided you with proof that the return was filed? After 6-7 months, New Jersey would have normally issued a closing letter or sent a letter asking for additional information if they had questions about the return.
Get a copy of the return and contact the state to see if they have it and how much longer is the delay. it might also pay you to pay some of the estate tax to prevent interest from accruing.
While 6 months may seem long, it is not that unusual for them to process these types of returns. You provide no details on the amounts received, and there may have been NJ Inheitance/Estate taxes due. These taxes are different from state and/or federal income taxes.and the requirement to pay the tax and the rate of tax is determined by two criteria: amount received and relationship of the recipient to the decedent. Nieces and nephews may be subject to these taxes depending upon how much they rceeived. These taxes may be paid by the estate, not the recipient, but I have not seen the Will language so I cannot inform you who might be responsible to pay any taxes.
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