WSR 98-22-037
EXPEDITED ADOPTION
DEPARTMENT OF REVENUE
[Filed October 29, 1998, 2:44 p.m.]
Title of Rule: WAC 458-57-575 Waiver or cancellation of penalties.
Purpose: To explain the circumstances under which the Department of Revenue is authorized to waive or cancel the penalty for the late filing of the Washington estate tax return.
Statutory Authority for Adoption: RCW 83.100.200 and 83.100.070.
Statute Being Implemented: RCW 83.100.070.
Summary: Chapter 136, Laws of 1997, revised RCW 83.100.070(3) to authorize the Department of Revenue to waive or cancel the penalty for the late filing of the Washington estate tax return under limited circumstances. This legislation directs the department to adopt a rule for the waiver or cancellation of this penalty.
Reasons Supporting Proposal: To implement chapter 136, Laws of 1997.
Name of Agency Personnel Responsible for Drafting: Pat Moses, 711 Capitol Way South, Suite #303, Olympia, WA, (360) 586-7150; Implementation: Claire Hesselholt, 711 Capitol Way South, Suite #303, Olympia, WA, (360) 753-3446; and Enforcement: Russell Brubaker, 711 Capitol Way South, Suite #303, Olympia, WA, (360) 586-0257.
Name of Proponent: Department of Revenue, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: RCW 83.100.070(3), as amended by chapter 136, Laws of 1997, authorizes the Department of Revenue to waive or cancel the penalty for the late filing of a Washington estate tax return under limited circumstances. Specifically, the department is authorized to waive or cancel the penalty if the delinquency was the result of a circumstance beyond the control of the person responsible for filing the state return. Prior to this legislation, the department had no authority for waiving or canceling penalties imposed under the estate tax program. This rule explains the circumstances under which a waiver or cancellation of the penalty for the late filing of the return will be granted. It also explains the procedure for requesting a waiver or cancellation of the penalty.
Proposal does not change existing rules.
NOTICE
THIS RULE IS BEING PROPOSED TO BE ADOPTED USING AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS RULE BEING ADOPTED USING THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Pat Moses, Department of Revenue, P.O. Box 47467, Olympia, WA 98504-7467, fax (360) 664-0693, e-mail patm@dor.wa.gov, AND RECEIVED BY January 2, 1999.
October 29, 1998
Russell W. Brubaker
Assistant Director
OTS-2569.2
NEW SECTION
WAC 458-57-575 Waiver or cancellation of penalties. (1) Introduction. RCW 83.100.070(3), as amended by chapter 136, Laws of 1997, authorizes the Washington state department of revenue (department) to waive or cancel the penalty for late filing of the Washington estate tax return under limited circumstances. This rule explains the circumstances under which a waiver or cancellation of the penalty will be granted, and the procedure for claiming the waiver or cancellation.
(2) Claiming the waiver. The department will cancel or
waive the late filing penalty imposed on a Washington estate tax
return (state return) when the delinquent filing is the result of
circumstances beyond the control of the person responsible for
filing ((of)) the state return. The person responsible for
filing the state return is the same person who is responsible for
filing the federal estate tax return (federal return).
A request for a waiver or cancellation of penalties should contain all pertinent facts and be accompanied by such proof as may be available. The person responsible bears the burden of establishing that the circumstances were beyond the responsible person's control and directly caused the late filing. The request must be made in the form of a letter and submitted to the department's special programs division.
(3) Circumstances eligible for waiver. In order to qualify for a waiver of penalty the circumstances beyond the control of the person responsible for filing the state return must directly cause the late filing of the state return. These circumstances are generally immediate, unexpected, or in the nature of an emergency. Such circumstances result in the person responsible not having reasonable time or opportunity to obtain an extension of their due date for the federal return or to otherwise timely file the state return. Circumstances beyond the control of the responsible person include, but are not necessarily limited to, the following:
(a) The delinquency was caused by the death or serious illness of the person responsible for filing the state return or a member of the responsible person's immediate family. In order to qualify for penalty waiver, the death or serious illness must directly prevent the person responsible from having reasonable time or opportunity to arrange for timely filing of the state return. Generally, the death or serious illness must have occurred within sixty days prior to the due date, provided that a valid state return is filed within sixty days of the due date.
(b) The delinquency was caused by an unexpected and unavoidable absence of the person responsible. Generally, this absence must be within sixty days prior to the due date, provided that a valid state return is filed within sixty days of the due date. "Unavoidable absence of the person responsible" does not include absences because of business trips, vacations, personnel turnover, or personnel terminations.
(c) The delinquency was caused by the destruction by fire or other casualty of estate records necessary for completion of the state return.
(d) An estate tax return was timely filed, but was filed incorrectly with another state due to an issue of the decedent's domicile.
(e) A Washington estate tax return was properly prepared and timely filed, but was sent to the location for filing of the federal estate tax return.
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