Application For Extension Of Time To Pay Ohio Estate Tax {41}

ET 41 Rev. 4/12 Estate Tax Unit P.O. Box 183050 Columbus, OH 43218-3050 1-(800) 977-7711 tax.ohio.gov ET File No. Application for Extension of Time to Pay Ohio Estate Tax For Dates of Death July 24, 1986 ­ Dec. 31, 2012 Attach Copy to Estate Tax Form 2 When Return Is Filed Part I ­ Identification (print or type) Decedent's last name Probate court and case number Name of application preparer Address of application preparer (number and street) City, state and ZIP code Decedent's first name and middle initial Date of death Estate tax return due date Part II ­ Extension of Time to Pay (Ohio Revised Code Section 5731.25) You must attach your written statements to explain in detail why it would cause undue hardship to pay the full amount of the estate tax by the estate tax return due date. Extension date requested (not to exceed one year). Month Day Year 1. Amount of estate tax estimated to be due ........................................................................... $ 2. Tax amount not subject to deferral ..................................................................................... $ 3. Tax shortage claimed (subtract line 2 from line 1) ............................................................. $ Part III ­ Signature and Verification If prepared by executor, administrator or person in possession of property ­ Under penalties of perjury, I declare that to the best of my knowledge and belief, the statements made herein are true and correct. Signature of executor, administrator or person in possession of property Title Date If prepared by someone other than executor, administrator or person in possession of property ­ Under penalties of perjury, I declare that to the best of my knowledge and belief, the statements made herein are true and correct. Signature of preparer other than executor, administrator or person in possession of property Title Date Part IV ­ Notice to Applicant ­ To Be Completed By the Ohio Department of Taxation The application for extension of time to pay (Part II) is: Approved Not approved because Other Tax commissioner By Date American LegalNet, Inc. www.FormsWorkFlow.com ET 41 Rev. 4/12 Page 2 How and Where to File Complete and file estate tax form 41 in duplicate with the Estate Tax Unit Ohio Department of Taxation P.O. Box 183050 Columbus, OH 43218-3050 General Instructions Who May File: Under R.C. section 5731.25, the personal representative who is required to file the estate tax return for the decedent's estate may file estate tax form 41, Application for Extension of Time to Pay Ohio Estate Tax. "Personal representive" means the executor, executrix, administrator or administratrix of the decedent's estate. If no executor, executrix, administrator or administratrix is appointed, "personal representative" means any person in actual or constructive possession of any property of the decedent. Also, an authorized attorney, certified public accountant, trustee, or agent holding a power of attorney may file this form to apply for an extension of time on behalf of the personal representative. The form must be signed by the person filing the application. The person who files should insert their appropriate title in Part III. Estate tax form 41 is required to be filed in adequate time to permit the Estate Tax Unit to consider the application and reply before the estate tax return due date. Interest from nine months from date of death must be paid on the part of the estate tax for which an extension of time to pay is approved. The part of the estate tax for which an extension is not granted is due nine months from date of death. When to File: Interest: Note: Specific Instructions Extension of Time to Pay (R.C. section 5731.25) ­ An extension of time to pay under R.C. section 5731.25 may not exceed 12 months. A discretionary extension of time to pay for undue hardship may not exceed 14 years. Different extension periods may be applicable to extensions of time granted for a deficiency (an R.C. section 5731.25(B) election, reversionary or remainder interest). The application must establish why it is impossible or impractical for the personal representative to pay the full amount of the estate tax by the estate tax return due date. Examples of undue hardship include the following: 1. An estate includes sufficient liquid assets to pay the estate tax when otherwise due. The liquid assets, however, are located in several jurisdictions and are not immediately subject to the control of the personal representative. Consequently, such assets cannot readily be marshalled by the personal representative even with the exercise of due diligence. 2. An estate is composed in substantial part of assets consisting of rights to receive payments in the future (i.e., annuities, copyright royalties, contingent fees, or accounts receivable). These assets provide insufficient present cash with which to pay the estate tax when otherwise due and the estate cannot borrow against these assets except upon terms that would inflict loss upon the estate. 3. An estate includes a claim to substantial assets that cannot be collected without litigation. Consequently, the size of the gross estate is unascertainable at the time the tax is otherwise due. 4. An estate does not have sufficient funds (without borrowing at a rate of interest higher than that generally available) with which to pay the entire estate tax when otherwise due. To provide a reasonable allowance during the remaining period of administration of the estate for the decedent's surviving spouse and dependent children, and to satisfy claims against the estate that are due and payable. Furthermore, the personal representative has made a reasonable effort to convert assets in the personal representative's possession into cash. 5. A significant portion of the gross estate consists of a farm or a closely held business, and there are not readily available, sufficient funds in the gross estate to pay an estate tax imposed by this chapter and any federal estate tax. For purposes of this unit, funds shall not be considered readily available because the farm or closely held business could be sold to persons who are not related by consanguinity or affinity to the decedent, at a price that equals the fair market value of the farm or closely held business. 6. Assets in the gross estate that would have to be liquidated to pay an estate tax imposed by this chapter when due could only be sold at a price that is considered a sacrifice price o