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TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3TAX ADMINISTRATION
SUBCHAPTER MINHERITANCE TAX
RULE §3.225Estates for Which a Texas Tax Return Is Required (Date of Death on or after September 1, 1983)

(a) A Texas inheritance tax return must be filed by the estate of every decedent which is required by federal law to file a federal estate tax return and which decedent was at the date of death:

  (1) a resident of Texas;

  (2) a nonresident of Texas who owned property taxable in Texas; or

  (3) an alien who owned property taxable in Texas.

(b) The representative of a resident or nonresident decedent's estate must file a tax return if the gross estate exceeds:

  (1) $275,000 and the date of death was in 1983;

  (2) $325,000 and the date of death was in 1984;

  (3) $400,000 and the date of death was in 1985;

  (4) $500,000 and the date of death was in 1986; or

  (5) $600,000 and the date of death was in 1987.

(c) A Texas generation-skipping transfer tax return must be filed by a trustee or distributee required to file a federal tax return pursuant to §§ 2601-2622, Internal Revenue Code, after any taxable distribution or taxable termination with respect to a generation-skipping trust, or trust equivalent, of property located in Texas.

(d) The returns are required to be filed as specified as follows unless an extension of time has been granted.

  (1) The inheritance tax return is due nine months after the date of the decedent's death.

  (2) The generation-skipping transfer tax return is due on the date that the federal tax return must be filed as specified by §2621(c) of the Internal Revenue Code. (The due date depends upon the type of event that gives rise to the tax liability.)

(e) The return and other documents required to be filed may be filed by either:

  (1) mailing the return to the Comptroller of Public Accounts, Tax Administration Division, Austin, Texas 78774, in which case the return will be considered filed as of the postmark date;

  (2) delivering the return to the Tax Administrative Division, Austin, Texas; or

  (3) delivering the return to any comptroller field office.

(f) Other documents which must be filed.

  (1) A copy of the United States estate tax return, Form 706, filed with the Internal Revenue Service must be filed with the Texas inheritance tax return.

  (2) A copy of the United States Form 706-A, additional United States estate tax return, must be filed with the comptroller on the date it is required to be filed with the Internal Revenue Service.

  (3) A copy of the United States generation-skipping transfer tax return, Form 706-B, filed with the Internal Revenue Service must be filed with the Texas generation-skipping transfer tax return.

  (4) Copies of any amendments or supplements to federal estate or generation-skipping transfer tax returns must be filed on the same date they are required to be filed with the Internal Revenue Service.

  (5) Copies of requests to extend the federal estate tax filing and/or payment deadlines and copies of documents relating to elections to pay all or part of the federal estate tax liability in installments, and copies of any taxpayer documents reflecting changes to, or cancellations, of an Internal Revenue Service payment agreement must be filed with the comptroller on the same date they are required to be filed with the Internal Revenue Service. Copies of any internal revenue documents reflecting changes to, or cancellations of, an Internal Revenue Service payment agreement must be filed with the comptroller within 10 days of issuance.

  (6) Copies of any Internal Revenue Service approved extensions to file the federal return and/or to pay the tax must be furnished to the comptroller. The person responsible for paying the tax must furnish a copy of the approved extension within 30 days after the extension has been granted.

  (7) Within 30 days after receipt of information of the final assessment by the federal government, a copy of all federal audit changes and a copy of the acceptance letter, closing letter, or comparable document issued by the Internal Revenue Service or federal courts, (along with the remittance of any additional tax, interest, and penalty that may be due) must be furnished to the Tax Administration Division. If more than one audit was conducted (such as a preliminary audit, a conference audit, or an appellant audit), copies of all these audits must also be furnished.

  (8) Estates containing assets both in or out of Texas and filing the federal estate tax return using the Internal Revenue Service "simplified format for small estates," must identify and value all Texas property. Schedules from the federal tax return or an inventory and appraisement will suffice so long as both probate and nonprobate assets are listed.

  (9) It is not necessary to furnish copies of estate appraisals unless specifically requested by the comptroller.


Source Note: The provisions of this §3.225 adopted to be effective February 10, 1982, 7 TexReg 355; amended to be effective February 13, 1985, 10 TexReg 338.

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