my mother passed Feb. 2009, I had paid the tax on 3 of her accounts with in 3 months and I had been waiting for papers from AIG where she had had a innuity I had given all the information to an accountant when I did my personal taxes this year and he said we won't have to worry about the time frame. Is this true?
Since your mother passed away in 2009 her estate has a $3.5 Million exclusion from Federal Estate Taxes. If her estate is greater than this amount, then an Estate Tax Return - Form 706 - is required to be filed and the taxes paid within 9 months of the date of death. If her estate is below the $3.5 Million mark your accountant is right and you do not have to worry about filing the return. If you do have to file this form seek a qualified tax professional that regularly prepares these forms as they are one of the most complicated tax forms to prepare.
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PA Inheritance tax is due if your mother lived in Pennsylvania and as you stated, the tax is due within 9 months of her death, with a discount of 5% if paid within three month as you did. Giving the information to your accountant or needing to wait for papers from a bank or insurance co will not typically be reason for the Department of Revenue to waive interest and penalty for paying after the due date. Pennsylvania is currently offering a very limited amnesty period in which it is waiving penalties.
You should seek assistance from an attorney with knowledge about PA Inheritance Tax quickly.
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