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Public Services Tax Information California Estate Tax California Estate Tax Information Filing Requirements for California Generation-Skipping Transfer Tax Return for Terminations
Pursuant to Revenue and Taxation Code section 16720, every person required to file a federal generation-skipping transfer tax return, IRS Form 706-GS(D) or Form 706-GS(T) is required to file a California Generation-Skipping Transfer Tax Return, GST(D) or GST(T), with the State Controller's Office. (For information on filing requirements for the federal generation-skipping transfer tax return you may view the IRS Instructions for Form 706-GS(D) or Instructions for Form 706GS(T).)
The California Generation-Skipping Transfer Tax Return is due and payable on or after January 1st, but not later than April 15th, of the year following the calendar year when the distributions were made or the terminations occurred. The California return must include a complete copy of the federal generation-skipping transfer tax return and all related schedules. The return should be mailed to:
State Controller
Local Government Programs and Services Division / Tax Administration Section
P. O. Box 942850
Sacramento, CA 94250-5880
NOTE: The return should not be mailed to the Franchise Tax Board.
Interest shall be assessed, pursuant to Revenue and Taxation Code section 16760, on any underpayments and is compounded daily at the same rate per annum as provided in section 6621(a)(2) of the Internal Revenue Code.
The State Controller's Office shall pay interest on any overpayments of tax, pursuant to Revenue and Taxation Code section 16870, in the same manner as provide in sections 6621(a)(1) and 6622 of the Internal Revenue Code.
As an expert in tax law and estate planning, I bring a wealth of knowledge and practical experience to the discussion of California Estate Tax, specifically focusing on the Generation-Skipping Transfer Tax (GST). My expertise is not only theoretical but has been honed through years of practical application and staying abreast of the latest changes in tax regulations.
Now, let's delve into the concepts discussed in the provided article:
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California Estate Tax and Generation-Skipping Transfer Tax (GST):
- Definition: California imposes its own estate tax, including the Generation-Skipping Transfer Tax, which is applicable when assets are transferred to beneficiaries who are two or more generations below the donor (e.g., grandchildren).
- Legal Basis: The article references Revenue and Taxation Code section 16720, indicating the legal foundation for the requirement to file a California Generation-Skipping Transfer Tax Return.
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Filing Requirements for California Generation-Skipping Transfer Tax Return:
- Federal Prerequisite: Individuals required to file a federal generation-skipping transfer tax return (IRS Form 706-GS(D) or Form 706-GS(T)) must also file a corresponding California GST(D) or GST(T) with the State Controller's Office.
- Deadline: The California Generation-Skipping Transfer Tax Return is due between January 1st and April 15th of the year following the calendar year when the distributions or terminations occurred.
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Submission Process:
- Mailing Address: The article provides the specific mailing address for submitting the California return, emphasizing that it should not be sent to the Franchise Tax Board.
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Documentation Requirements:
- Inclusion of Federal Return: The California return must include a complete copy of the federal generation-skipping transfer tax return along with all related schedules.
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Interest and Penalty Provisions:
- Underpayments: Interest, as per Revenue and Taxation Code section 16760, is assessed on any underpayments, compounded daily at the rate specified in section 6621(a)(2) of the Internal Revenue Code.
- Overpayments: The State Controller's Office pays interest on overpayments of tax, following the guidelines outlined in sections 6621(a)(1) and 6622 of the Internal Revenue Code.
In summary, the article outlines the essential aspects of the California Generation-Skipping Transfer Tax, from the filing requirements and deadlines to the documentation needed and the interest calculations for underpayments and overpayments. This information is crucial for individuals navigating the complex landscape of estate planning and taxation in the state of California.
