N.J. Admin. Code § 18:26-3.4

Current through Register Vol. 56, No. 12, June 17, 2024

Section 18:26-3.4 - Additions or reductions to estate tax

(a) If, subsequent to a determination of the estate tax due this State, an additional or increased estate tax shall become payable to the United States by reason of a redetermination, or additional or corrected assessment, as to a portion of which the estate is entitled to a credit for estate, inheritance, succession, or legacy taxes paid to any state or territory of the United States, including the District of Columbia, then an additional estate tax shall be due and payable to this State, which shall be computed in the same manner as stated in N.J.A.C. 18:26-3.2.

(b) If, subsequent to a determination of the estate tax due this State, the amount of the Federal estate tax shall be decreased and the amount allowed as a credit for inheritance, succession, or legacy taxes paid to any state or territory of the United States, including the District of Columbia, correspondingly reduced, the estate tax due this State shall be reduced accordingly upon submitting satisfactory proof to the Director.

(c) The amount of the estate tax due New Jersey, if any, cannot be determined in any case until the Federal government has determined the amount of Federal estate tax chargeable on final assessment.

1. Notice to the estate of final assessment usually takes the form of a letter from a revenue officer of the Internal Revenue Service, indicating the amount of Federal estate tax chargeable, and the amount of the allowable credit.

2. If any adjustments have been made, this letter is accompanied by a detailed statement of the changes made in each schedule of the Federal estate tax return. If an appeal from the Internal Revenue Service assessment is taken, the final notice will be the order of the appellate court in this respect.

3. The New Jersey Transfer Inheritance Tax Branch requires a copy of all determinations, final and intermediate, of the Internal Revenue Service, with all supporting statements. Copies of receipts for payment of succession or estate taxes to any state other than New Jersey, territory, possession, or the District of Columbia are also required.

4. The form of return for New Jersey estate tax purposes may be obtained from the Transfer Inheritance Tax Branch, PO Box 249, Trenton, NJ 08695-0249.

N.J. Admin. Code § 18:26-3.4

Adopted by 50 N.J.R. 1624(a), effective 7/16/2018