Instructions for REV-1647 Schedule M
REV-1647 EX (02-15)                                                         Future Interest Compromise

                                   III. Explanation of mine if a compromise determination
GENERAL INFORMATION
                                   Compromise Offeris appropriate and to evaluate the
PURPOSE OF SCHEDULESection 9116(e) of the Inheritance andsuggested compromise tax amount
                                   Estate Tax Act of 1991 [72 P.S. §submitted by the taxpayer. The depart-
Use REV-1647 Schedule M to report all9116(e)] effective Oct. 3, 1991 author-ment’s review may be based on actu-
future interests where the rate of taxizes the Department of Revenue toarial computation, subjective analysis,
which will be applicable when thecompromise the amount of tax payableor a combination of both. If the facts
future interest vests in possession andon a future interest when the ratepresented on REV-1647, Schedule M
enjoyment cannot be established withof tax cannot be established withdo not reveal any extraordinary cir-
certainty.                         certainty.                         cumstances, the determination of the
                                           NOTE:This schedule is applica-department will be made by an actuarial
FORM INSTRUCTIONSble only if a contingency makesformula without any subjective review.
                                   it impossible on the date of death of a  NOTE:If a contingency makes it
Estate of                          decedent to determine the rate of taximpossible on the date of death
Enter the complete name of the estatewhich will apply when a future interestto determine the rate of tax which will
as shown on REV-1500, Pennsylvaniavests in possession and enjoyment.apply when a future interest vests and
Inheritance Tax Return.A compromise request is not necessarya compromise determination is not
                                   if all potential beneficiaries are taxable
File Number                                                           requested by the taxpayer, the depart-
Enter the file number of the estate as-at the same rate, and the only uncer-
                                                                      ment will assess tax at the highest
signed by the Register of Wills astainty is the identity of the ultimate
shown on REV-1500, Pennsylvania In-beneficiary of a future interest.rates which would apply at all points of
                                                                      uncertainty in the chain of distribution.
heritance Tax Return.REV-1647, Schedule M must accom-
                                   pany the return if a compromise deter-   NOTE:To request a compromise
                                   mination is requested. All informationdetermination, the person re-
GENERAL INSTRUCTIONShaving a direct or indirect effect on thesponsible for filing thereturn must fill
IMPORTANT:This schedule iscompromise portion of the estatein oval 5 “Future Interest Compromise”
appropriate only for estates of    should be presented with the return.of REV-1500.
decedent dying on or after Dec. 13,The estate is encouraged to provideThe Inheritance Tax Division, upon
1982.                              any information that is deemed towritten request, will provide the prob-
I.  Beneficiaries                  have an impact on the possible futureability factor in the case of an actual
List the name, relationship, date ofbenefit to the respective beneficiariesdecedent prior to the filing of the tax
birth and age to nearest birthdayso that the department may makereturn. Inquiries should be addressed
                                   informed judgments. This may include,
of each beneficiary indicated in the                                  to:
                                   but would not be limited to: the health
instrument which created the futureand lifestyle of the respective benefici-      PA DEPARTMENT OF REVENUE
interest compromise.aries, individual wealth of the benefici-BUREAU OF INDIVIDUAL TAXES
II. Right of Withdrawalary, average expenses, expectedINHERITANCE TAX DIVISION
For decedents dying on or after July 1,income, etc. The estate’s compromisePO BOX 280601
1994, if a surviving spouse exercisedoffer should be supported by as muchHARRISBURG, PA 17128-0601
or intends to exercise a right of with-factual data and explanatory informa-The request for a probability factor
drawal within nine months of the dece-tion as possible.
                                                                      must identify the estate, date of death,
dent’s death, check the appropriateThe Department of Revenue will reviewfile number, and must be accompanied
block.                             the information presented to deter-by a copy of any relevant instrument.

www.revenue.pa.gov                                                                                 1