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HTML Version Copyright
1995-2000 Daniel B. Evans. All rights reserved.
The Inheritance and Estate Tax Act
(Article XXI of the Tax Reform Code of 1971, Act of
March 4, 1971, P.L. 6, No. 2, added by Act of Aug. 4,
1991, P.L. 97, No. 22, as amended.)
PART IX
COLLECTION OF TAX
___Notwithstanding the provisions of any State tax law
to the contrary, whenever a report or payment of all or
any portion of a State tax is required by law to be
received by the department or other agency of the
Commonwealth on or before a day certain, the taxpayer
shall be deemed to have complied with the law if the
letter transmitting the report or payment of the tax
which has been received by the department is postmarked
by the United States Postal Service on or prior to the
final day on which the payment is to be received. For the
purposes of this article, presentation of a receipt
indicating that the report or payment was mailed by
registered or certified mail on or before the due date
shall be evidence of timely filing and payment.
___The taxes imposed by this article, together with
any interest on the taxes, shall be a lien upon the real
property included in the transfer on which the taxes are
imposed. Except as otherwise provided in this part, the
lien shall remain until the taxes and interest are paid
in full.
___In the case of a transfer of any estate, income or
interest for a term of years, for life or for other
limited period, or constituting a future interest, the
taxes imposed by this article, together with any interest
on the tax, shall remain a lien until paid upon the
entire real property by which the estate, income or
interest is supported, or of which it is a part, and the
lien shall be limited to the real property so
transferred.
___Unless suit for collection of the taxes imposed by
this article is instituted within twenty years after any
tax becomes delinquent, the lien shall cease as to any
purchaser, mortgagee or lessee of a devisee or heir of,
or a beneficiary under a deed of trust of, the real
property subject to the lien. Any time within the
twenty-year period, if any tax on the real property is
not paid, the department shall have power to file a
certificate, under its seal, certifying to nonpayment
which, when filed in the office of the clerk of the
county where the real property is situated, shall
continue the lien against decedent's real property for an
additional period of five years from the date of the
filing and the lien shall be indexed in the office of the
clerk. If the taxes on the real property are not paid
within the additional period of five years, the
department shall have power to extend the lien for
additional periods of five years by filing a certificate
in the manner provided in this section.
___If real property subject to the lien of taxes
imposed by this article is sold or exchanged by a
fiduciary who is subject to the jurisdiction of the court
and who has given bond as required by 20 Pa.C.S.
(relating to decedents, estates and fiduciaries), or is a
corporate fiduciary which need not file bond under 20
Pa.C.S., the lien on the property sold shall cease.
___If real property subject to the lien of taxes
imposed by this article is sold or exchanged or otherwise
disposed of by an heir, devisee or fiduciary, and if the
inheritance tax, together with interest, is paid on all
property reported in the tax return, including the
property sold, which property has been appraised and tax
assessed, the lien of any unpaid tax imposed by this
article shall cease as to the property sold.
___When real property or any income or interest in the
real property or income has been transferred within the
meaning of subsection (c) of
section 2107 and the
transferee has sold, mortgaged or leased the property or
any income or interest in the property, the interest of a
bona fide purchaser, mortgagee or lessee in the property
shall not be subject to any lien for the taxes imposed by
this article.
___If real property subject to the lien is mortgaged
or leased by a fiduciary who is subject to the
jurisdiction of the court and who has given a bond as
required by 20 Pa.C.S. (relating to decedents, estates
and fiduciaries), or is a corporate fiduciary which need
not file bond under 20 Pa.C.S., the lien shall become
subject and subordinate to the rights and interests of
the mortgagee, lessee or other person so secured.
___Upon approval of a bond for the payment of taxes
imposed upon a transfer, the lien upon the real property
shall cease. The amount of the bond shall not exceed the
value of the real property transferred.
___(a) In case of a transfer, other than by will or
intestacy, the department, upon satisfactory proof that
no taxes are due which would be a lien on the real
property transferred by reason of the death of the
transferor, may release all or any portion of the
property from any lien imposed by this article to which
the property otherwise might be subject.
___(b) The department may, at any time, release all
or any portion of the real property subject to any lien
imposed by this article from such lien or subordinate
such lien to other liens and encumbrances if it
determines that the taxes are sufficiently secured by a
lien on other property of the decedent or that the
release or subordination of the lien will not endanger or
jeopardize the collection of the taxes.
___(c) When inheritance tax in respect to the
transfer of particular real property is paid on the value
of the property without diminution for any deductions
authorized by this article, other than a mortgage on the
property existing at the date of the decedent's death,
the department, upon request of a party in interest,
shall issue a certificate evidencing the release of the
property from the lien of tax.
___(d) A certificate by the department to the effect
that any real property or interest in real property
subject to any lien imposed by this article has been
released from the lien, or that the lien has been
subordinated to other liens and encumbrances, shall be
conclusive evidence as to any bona fide purchaser,
encumbrancer or lessee that the lien has been released or
subordinated.
___(a) The court, at the request of the register,
department or Office of Attorney General, shall issue a
citation, directed to those liable for the payment of the
taxes or subject to any other duty imposed by this
article, commanding the person or persons to appear and
show cause why the requirements of this article should
not be met.
___(b) The court may issue any decree warranted by
the facts, according to equity.
___(c) A citation to enforce payment of taxes due
under this article or compliance with the duties required
by this article shall be issued by the court upon
application of the register, department or Office of
Attorney General whenever any of the following occurs:
______(1) A tax return is not filed within the time
required by this article.
______(2) Any tax due under this article remains
delinquent.
______(3) A Federal estate tax return has been filed
but a copy of the return or a communication making a
final change on the return has not been filed as required
by section 2145.
______(4) Any other duty imposed by this article
remains unperformed.
___(d) The register or department may issue subpoenas
to compel the production of documents and the attendance
of witnesses necessary for the administration of this
article.
___(e) Execution may be issued by the court against
any real property in the decedent's estate on which a
lien for the payment of the taxes imposed by this article
exists or against any property belonging to a transferee
liable for the tax.
___(f) The department may bring suits in the courts
of other states to collect death taxes (including
interest and penalties on the taxes) imposed by this
article. An official of another state which extends a
like comity to the Commonwealth may sue for the
collection of death taxes (including interest and
penalties on the taxes) in the courts of this
Commonwealth. A certificate by the Secretary of State of
another state, under the seal of that state, that an
official has authority to collect its death taxes shall
be conclusive evidence of the authority of the official
in any suit for the collection of the taxes in any court
of this Commonwealth.
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