The Illinois 700 form is a crucial document used for reporting estate and generation-skipping transfer taxes for individuals who have passed away on or after January 1, 2021. This form is essential for ensuring compliance with state tax obligations, particularly when the gross value of an estate exceeds $4 million. Understanding its requirements can help personal representatives navigate the complexities of estate taxation in Illinois.
The Illinois 700 Form serves as the Estate and Generation-Skipping Transfer Tax Return for individuals who have passed away on or after January 1, 2021. This form is essential for reporting the taxable estate of a decedent, and it includes various sections that require detailed information about the deceased's assets, liabilities, and the estate's tax obligations. The form can be filed as an original return, a supplemental return if additional tax is due, or an amended return if no additional tax is owed. Key components of the form include the decedent's information, the personal representative's details, and a checklist to indicate the applicable filing circumstances. It also requires a comprehensive itemized schedule of assets, which must include all properties regardless of their location. The form mandates that the total gross value of the decedent's assets be reported without deductions for debts or encumbrances. Furthermore, it outlines specific elections, such as the Illinois QTIP election and the option to pay taxes in installments, which can affect the overall tax liability. Timely submission is crucial, as the return must be filed within nine months of the date of death, and penalties may apply for late filings. Understanding the Illinois 700 Form is vital for ensuring compliance with state tax laws and for effectively managing the estate's financial responsibilities.
What is the Illinois Form 700?
The Illinois Form 700 is the Estate and Generation-Skipping Transfer Tax Return required for decedents who pass away on or after January 1, 2021. This form is used to report the estate's gross value and calculate any applicable Illinois estate tax. It includes sections for reporting the decedent's information, the personal representative's details, and the specifics of the estate's assets. The form must be filed within nine months of the decedent's date of death.
Who is required to file the Illinois Form 700?
If the gross value of the decedent's estate exceeds $4 million, the Illinois Form 700 must be filed, regardless of whether a federal estate tax return is required. This requirement applies to both resident and non-resident decedents. The estate representative is responsible for preparing and submitting this form along with any necessary documentation, such as the Federal Form 706 if applicable.
What are the penalties for late filing or payment?
Failure to file the Illinois Form 700 on time may result in penalties. A late filing penalty is assessed at 5% of the tax due for each month or part of a month the return is late, with a maximum penalty of 25%. Additionally, a late payment penalty of 0.5% of the tax due is charged for each month or part of a month that the payment is overdue, also capped at 25%. Interest at a rate of 10% per annum may accrue from nine months after the date of death until the tax is paid.
What is the Illinois QTIP election and how does it work?
The Illinois QTIP (Qualified Terminable Interest Property) election allows the estate to claim certain property for tax purposes, benefiting the surviving spouse. This election must be made on the Illinois Form 700 by checking the appropriate box and providing the amount of the QTIP election along with the social security number of the surviving spouse. An itemized list of the property included in the QTIP election must also be attached. This election is in addition to any federal QTIP election made.
Where should the Illinois Form 700 be filed?
The filing location for the Illinois Form 700 depends on the county of jurisdiction. For Cook, DuPage, Lake, and McHenry Counties, the original return must be filed with the Office of the Attorney General, Revenue Litigation Bureau, in Chicago. For all other counties, the return should be sent to the Office of the Attorney General, Revenue Litigation Bureau, in Springfield. Timely payment of taxes, interest, and penalties must be made payable to the Illinois State Treasurer and sent to the designated address.
Incorrectly Identifying the Type of Return: Individuals often select the wrong box when indicating whether the return is original, supplemental, or amended. This mistake can lead to processing delays or incorrect tax assessments.
Omitting Required Information: Failing to provide essential details, such as the decedent’s Social Security number or the name of the personal representative, is a common error. This omission can hinder the processing of the return and may result in penalties.
Inaccurate Asset Valuation: Some individuals miscalculate the gross value of the decedent’s assets. It is crucial to ensure that the total value is reported accurately, undiminished by any debts or encumbrances, as this impacts the overall tax liability.
Failure to Attach Necessary Documentation: Many people neglect to include required schedules or attachments, such as an itemized list of assets or a copy of the Federal Estate Tax Return. This oversight can lead to delays and complications in the review process.
FORM 700
STATE OF ILLINOIS
ESTATE & GENERATION-SKIPPING TRANSFER TAX RETURN FOR DECEDENTS DYING ON OR AFTER JANUARY 1, 2022
Original Return
¨
Supplemental Return (Additional tax due.)
Amended Return (No additional tax due.)
of:
Date of Death
Estate of:
Decedent’s Address (No. & Street):
City
State
Zip Code
Decedent’s Social Security Number:
Name of Illinois County with Jurisdiction over Estate:
Name of Personal Representative or Person Filing Return:
Telephone:
Address (No. & Street):
Name of Preparer:
Indicate which of the following SEVEN are applicable:
1. Neither a Federal Estate Tax Return nor Illinois Estate Tax Return is required to be filed, but a Certificate of Discharge is requested.
a) Assets with taxable situs in Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b) Assets with taxable situs in another state or states . . . . . . . . . . . . . . . . . .
c) TOTAL Gross Value of Decedent’s Assets . . . . . . . . . . . . . . . . . . . . . . . .
$
Attach itemized schedule of assets wherever located. Gross value means the total of the assets undiminished by mortgages, liens or other encumbrances upon such assets for which decedent was personally liable.
2.A Federal Estate Tax Return or any other form containing the same information is attached, but no Illinois Estate Tax is due. A Certificate of Discharge is requested.
STATE OF ILLINOIS ESTATE & GENERATION SKIPPING TRANSFER TAX RETURN - PAGE 1
3.A Federal Estate Tax Return or any other form containing the same information is attached (whether or not a Federal Estate Tax is due), and an Illinois Estate Tax is due. A Certificate of Discharge is requested. (Complete Recapitulation and Schedule A or B, whichever is applicable.)
4.An Illinois QTIP election is made for this estate.
Amount of Illinois QTIP election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Attach an itemized list of the Illinois QTIP property. If this includes trust property, state the percentage of the trust made subject to the election.)
Social Security Number of surviving spouse ____________________________
5.If a Section 6166 Election to Pay Tax in Installments is being requested, check box, attach an executed Form IL-4350a, and supply proof of acceptance by the Internal Revenue Service (when available).
Amount of deferred Illinois Estate Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.This is an Amended or Supplemental Return.
(Complete Recapitulation and Schedule A or B, whichever is applicable, and attach copy of amended Federal Estate Tax Return or other applicable documents.)
Decedent was:
a)
a resident of Illinois, Year residency established
b)
a non-resident of Illinois, Year residency established
c)
an alien, State of residence
Due date of this Return:
7. If an extension of time to file is being requested or if due date determined by extension of time to file Federal Estate Tax Return, check box and attach explanation for extension request or a copy of the Federal extension request. If based upon a Federal extension request, file a copy of approved extension request when available. This extension request should be filed within 9 months of date of death.
The undersigned declare, under penalties of perjury, that they have examined this return, including any and all accompanying schedules or attachments, and that they believe the same to be true and correct as to every material matter and further verify that any attached Federal Estate Tax Return and any other applicable Federal tax documents are true and corrected copies of the originals filed with the Internal Revenue Service.
The undersigned further certify that the attached Will (if decedent died testate) is a true and correct copy of the Will of the decedent.
Signature of decedent’s personal representative
Title
Date
Signature of preparer
STATE OF ILLINOIS ESTATE & GENERATION SKIPPING TRANSFER TAX RETURN - PAGE 2
SCHEDULE A – Resident Decedent’s Estate (Instructions on page 5.)
1. Tentative Taxable Estate from Federal Return (Line 3a, Form 706),
or other form containing the same information . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Illinois QTIP election
(Amount claimed as Illinois QTIP election in this estate or amount from prior estate’s Illinois QTIP election.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Illinois Tentative Taxable Estate
(Line 1 minus Line 2 if the QTIP is elected in this estate; or line 1 plus line 2
if the QTIP was previously elected.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Adjusted taxable gifts
(Line 4, Form706, or any other form containing the same information.) . . . . . . . .
5. Illinois Tentative Taxable Estate plus adjusted taxable gifts
(Add Line 3 and Line 4.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Full amount computed for Illinois Estate Tax from website calculator before apportionment
(Use Lines 3 & 5 from this Form 700 for the website calculator.) . . . . . . . . . . . . .
7. Gross value of decedent’s estate having taxable situs in Illinois, plus amount added back from prior estate’s Illinois QTIP election . . . . . . . . . . . . . . . .
8. Gross value of decedent’s estate wherever located (Line 1, Form 706),
plus amount added back from prior estate’s Illinois QTIP election . . . . . . . . . . . .
9. Percent of estate having taxable situs in Illinois
(Line 7 divided by Line 8.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10. Amount of tax attributable to Illinois
(Line 6 multiplied by Line 9. Also enter on Line 1 in Recapitulation.) . . . . . . . . . .
1.$
2.$
3.$
4.$
5.$
6.$
7.$
8.$
9.%
10.$
With respect to the estate of a deceased resident of this State, all property included in the gross estate of the decedent for Federal Estate Tax purposes shall have a taxable situs in this State for purposes of this Section, excepting real estate and tangible personal property physically situated in another state (including any such property held in trust).
SCHEDULE B – Non-Resident or Alien Decedent’s Estate (Instructions on page 5.)
(Line 1 minus Line 2 if the QTIP is elected in this estate; or line 1 plus line 2 if the QTIP was previously elected) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3$
4. $
Continued on Page 4.
STATE OF ILLINOIS ESTATE & GENERATION SKIPPING TRANSFER TAX RETURN - PAGE 3
SCHEDULE B – Non-Resident or Alien Decedent’s Estate (Continued.)
(Lines 3 & 5 from this Form 700 and applied to website calculator.) . . . . . . . . . .
In the case of a decedent who was a resident of this State at the time of death, all of the transferred property has a tax situs in this State, including any such property held in trust, except real or tangible personal property physically situated in another state.
In the case of a decedent who was not a resident of this State at the time of death, the transferred property having a tax situs in this State, including any such property held in trust, is only the real estate and tangible personal property physically situated in this State.
RECAPITULATION
1. Amount of tax payable to Illinois
(Schedule A Line 10 or Schedule B Line 10.) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Late filing penalty
(5% of tax for each month or portion thereof - maximum penalty 25%.) . . . . . . .
3. Late payment penalty (1/2 of 1% of tax for each month
or portion thereof - maximum penalty 25%.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Interest at 10% per annum from 9 months
after death until date of payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Total Tax, penalties and interest payable
(Total of Lines 1, 2, 3 and 4.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Prior Payment
(Attach explanation.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Balance due
(Line 5 minus Line 6.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
STATE OF ILLINOIS ESTATE & GENERATION SKIPPING TRANSFER TAX RETURN - PAGE 4
FILING AND PAYMENT INSTRUCTIONS
For decedents dying prior to 2022, see the Returns previously posted on the Attorney General’s website covering the specific year of death.
For persons dying in 2022, the Federal exemption for Federal estate tax purposes is $12,060,000. The exclusion amount for Illinois estate tax purposes is $4,000,000. The exclusion amount operates as a taxable threshold and not as a credit against tax due. If an estate’s gross value exceeds $4 million after inclusion of adjusted taxable gifts, an Illinois Form 700 must be filed, whether or not a federal return is required by the Internal Revenue Service. The estate representative should prepare and submit the Illinois Form 700 with a Federal Form 706, including all schedules, appraisals, wills, trusts, attachments, etc. If an estate is not federally taxable and does not wish to submit a Form 706, the information may be presented in an alternate format as long as all necessary information is included. (See Ill. Admin Code tit. 86, §2000.110.) The Illinois estate tax will be determined using an interrelated calculation for 2022 decedents. The calculator at the Illinois Attorney General’s website (www.illinoisattorneygeneral.gov) may be used for this computation. To determine tax due, insert the amounts from Lines 3 and 5 of Schedule A or B, Form 700. Please note that the Calculator will not perform the computation unless amounts are entered into both fields.
When the tentative taxable estate plus adjusted taxable gifts exceeds $12,060,000 the Illinois Estate Tax Return, Form 700, must include a copy of the Federal Form 706 with all schedules and attachments.
For both resident and nonresident decedents, a preliminary tax prior to apportionment should be calculated assuming all assets are located within Illinois. (Line 6, Schedule A or B, Form 700). The apportioned tax can then be determined by multiplying that figure by the ratio of Illinois assets to total assets.
Illinois QTIP election (Qualified Terminable Interest Property):
For persons dying January 1, 2009 and after, the estate may make a QTIP election for Illinois purposes which is in addition to any Federal QTIP election. The Illinois QTIP must be elected on a timely filed Illinois return by checking the election box (pg. 2, box 4), inserting the dollar amount of the QTIP election, and providing the social security number of the surviving spouse. An itemized list of property included in the Illinois QTIP should be submitted with the return. The Illinois QTIP election will follow Federal statutes and rules for treatment of such elected property passing to the surviving spouse and inclusion for Illinois purposes on any Illinois Estate Tax Return of the surviving spouse, except as to the application of the Illinois Religious Freedom Protection and Civil Union Act to parties of a civil union for Illinois estate tax purposes.
THIS RETURN MUST BE FILED WITH THE ILLINOIS ATTORNEY GENERAL WITHIN NINE (9) MONTHS OF THE DATE OF DEATH. For Cook, DuPage, Lake, and McHenry Counties, file the original of the return with the Office of the Attorney General, Revenue Litigation Bureau, 100 West Randolph Street, 13th Floor, Chicago, Illinois 60601. For all other counties, file the original of the return with the Office of the Attorney General, Revenue Litigation Bureau, 500 South Second Street, Springfield, Illinois 62701.
PAYMENT OF ALL TAXES, INTEREST AND PENALTIES MUST BE MADE PAYABLE TO THE ILLINOIS STATE TREASURER WITH THE “ILLINOIS STATE TREASURER ESTATE TAX PAYMENT FORM” AT THE ADDRESS DESIGNATED THEREIN.
ALL PAYMENTS MUST BE MAILED TO OR DEPOSITED WITH THE STATE TREASURER IN ORDER TO BE CREDITED WITH TIMELY PAYMENT.
Printed by authority of the State of Illinois. (Revised: 07/22)
STATE OF ILLINOIS ESTATE & GENERATION SKIPPING TRANSFER TAX RETURN - PAGE 5
When filling out the Illinois 700 form, it’s crucial to follow specific guidelines to ensure accuracy and compliance. Here’s a list of things you should and shouldn't do:
By adhering to these guidelines, you can help ensure a smoother process in handling the Illinois 700 form.
The Illinois Form 700 is an essential document for reporting estate and generation-skipping transfer taxes for individuals who have passed away on or after January 1, 2021. Alongside this form, several other documents are commonly required to ensure compliance with state tax regulations. Below is a list of related forms and documents that may be necessary in conjunction with the Illinois Form 700.
Understanding these related forms and documents is crucial for the smooth processing of estate taxes in Illinois. Each document serves a specific purpose in clarifying the estate's tax obligations and ensuring compliance with state laws. Proper preparation and submission of these forms can help avoid delays and penalties during the estate settlement process.
Understanding the Illinois 700 Form is crucial for managing estate and generation-skipping transfer taxes. However, several misconceptions can lead to confusion. Here are four common misunderstandings:
This is not true. Any estate with a gross value exceeding $4 million must file this form, regardless of whether a federal return is necessary. This threshold applies to all estates, not just the largest ones.
Even if a federal return isn’t required, the Illinois 700 Form must still be filed if the estate's gross value exceeds the state threshold. It's essential to assess the estate’s total value before deciding on the filing requirements.
While both elections allow for the deferral of taxes on certain property, they are distinct. The Illinois QTIP election must be specifically indicated on the Illinois 700 Form and requires separate documentation.
This is a misunderstanding. An extension to file does not eliminate the requirement to submit the form within nine months of the decedent's death. It simply allows more time to complete the necessary documentation.
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