Instructions For Form Ftb 3571 - Request For Estate Income Tax Certificate printable pdf download

INSTRUCTIONS

C. Basis of Community Property

A. California Revenue and Taxation Code Section

19513 Tax Certificates

For information on determining the basis for community

property telephone our Information Center or write to

For certain estates, Section 19513 of the Administration

FRANCHISE TAX BOARD, PO BOX 942840

– Franchise and Income Tax Law prohibits the probate

SACRAMENTO, CA 94240-0040.

court from allowing the final account of the fiduciary

unless the Franchise Tax Board (FTB) certifies that all

For telephone assistance:

taxes have been paid or secured as required by law.

From within the United

States call. . . . . . . . . . . . . . . . . . . 1-800-852-5711

From outside the United

The certificate is only required if an estate meets

States call (not toll free). . . . . . . . . 1-916-845-6500

BOTH of the following TWO requirements:

For hearing impaired

(1) Had assets with a fair market value exceeding

with TDD, call . . . . . . . . . . . . . . . . 1-800-822-6268

$400,000 on the date of death, AND

(2) Is to distribute assets exceeding $100,000 to

D. Other Information

one or more nonresident beneficiaries.

A copy of the Final Account of the fiduciary need not be

submitted unless requested by this office.

In determining if the assets exceed $400,000, include

the fair market value of all assets on date of death,

Fiduciaries may be required to withhold tax on California

wherever situated, for decedents who were California

source income distributed to nonresident beneficiaries.

residents. For nonresident decedents, include the value

Income from intangible personal property such as

of only those assets located in California.

interest and dividend income or gain from the sale of

stocks or bonds is generally not taxable to a nonresident

In determining if assets exceeding $100,000 are

beneficiary and therefore not subject to withholding.

distributable to nonresident beneficiaries, the residency

Failure to withhold when required may make the

of a trust which is a beneficiary of the decedent’s estate

fiduciary personally liable for the amount due. For

is determined by the residency of the trustees.

information on determining requirements for withholding

Before issuing the certificate, the FTB requires payment

telephone (916) 845-4739 (not toll free) or write to

of all accrued taxes of the decendent and of the estate

FRANCHISE TAX BOARD, NONRESIDENT

and may also require a cash deposit to secure the

WITHHOLDING SECTION, PO BOX 651,

payment of any taxes which may later become payable.

SACRAMENTO, CA 95812-0651.

The certificate is valid only to the end of the current

Income earned by the estate in the final year in which its

taxable year. A new certificate extending the expiration

assets are distributed pursuant to a decree of final

date will be issued only when a return is filed for each

distribution is taxable to the beneficiaries. However, the

subsequent year and the tax for that year, if any, is paid.

estate is required to file a final return and properly report

the income distribution.

The certificate is issued to the fiduciary or representative

designated on the application. THE ACTUAL FILING OF

The return for the fractional part of the year prior to

THE CERTIFICATE WITH THE COURT IS THE

death should be computed on the basis of the method of

RESPONSIBILITY OF THE FIDUCIARY OR

accounting followed by the decedent. Income and

REPRESENTATIVE.

deductions for expenses, interest, taxes and depletion

accrued solely by reason of death are not includible in

B. Effect of the Certificate and Continuing Liability of

the return of a decedent for the period in which death

the Fiduciary

occurred. Such items should be included in the return of

The tax certificate issued under California Revenue &

the estate or beneficiary, as the case may be, upon

Taxation Code Section 19513 does not relieve the estate

receipt or payment thereof.

of liability for any taxes due or which may become due

Return filing requirements will be found in the

from the decedent or the estate. Neither does the

applicable instructions for the:

certificate relieve the fiduciary of the personal liability for

•

Individual Form 540, 540A, 540EZ,

taxes and other expenses as imposed by California

or 540NR

Revenue & Taxation Code Section 19516 (formerly

•

Estate Form 541

Section 19265).

E. Final Returns

A final fiduciary return (Form 541) is required to be filed

for the year in which the estate closes if the filing

requirements are met. A return should also be filed to

establish any excess deductions allowed to beneficiaries

in the final year.

A final personal income tax return (Form 540, 540A,

540EZ or Form 540NR) filed for a decedent should be

marked at the top of the return in block letters: ‘‘Final’’.

FTB 3571 C2 (REV 11-1998) SIDE 2

Instructions For Form Ftb 3571 - Request For Estate Income Tax Certificate

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