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News Letter 6 - May 1993
Current IssuesAs is usually the case, whenever we send out a newsletter, Congress is acting is if it might change the law soon. There are also several other issues might create a need to change Inter-Est soon. The issues that have caught our attention are:
There are several bills pending in Congress to change the Federal Estate Tax in several ways. One is to delay the phase in of the maximum rate to 50%. This change would be retroactive to Jan. 1, 1993. We will modify our rate tables as soon as any of these bills become law.
There is a chance that a letter ruling will be issued changing the way payments are allocated where undesignated payments are made in a §6166 situation. We should be able to respond to any letter ruling within 60 days of its becoming public. There is also a pending ruling in the restricted interest area. This ruling is about whether the Compliance Centers are barred from asserting restricted interest under certain situations. These situations relate to the statute of limitations or an equitable bar because the restricted interest was not assessed in a timely manner.
There has been a recent change to Massachuchetts law to phase out their Estate Tax. Inter-Est will be changed as soon as we get the details on the law change.
GST Tax computations are becoming more common. As we get more experience, we will add support in this area. Inter-Est supports one formula allocation of the GST exepmtion that was derived from an actual computation. There has been a ruling that supports these formula allocations. It is just a matter of time before these formulae become more common and become standardized. When this occurs, we will add support for the common formulae.
For several years after we added a provision to support the residue's right of reimbursement for tax generated by §2044 property. no one used the feature. Now the feature is being used and a demand has been created for similar support for State tax generated under the same circumstances. Ver. 2.00 has some added features, but more might be needed.
We have run into various odd issues related to the computation of interest on State Death Taxes. There is a good chance that some additional changes will have to be made to support some of these problems. Version 2.00
To run Version 2.00, you should have:
If your computer does not meet these requirements, you should stay with Version 1.10:
If the only result of a complete program rewrite was to make the program larger and slower, it would not make much sense. There are many major advantages to Version 2.00. Some of these advantages are:
New Computation Features in Version 2.00:
Recent Changes to Version 1.10:While we do not plan to add any new features to Version 1.10, we will maintain it in a usable form for use by those whose computers will not run Version 2.00.
Support added for the 5% discount for Pennsylvania Inheritance Tax paid within three months of death.
Amount qualifying for the 4% rate where there was a §6166 election was adjusted from $53,500 to $54,000. We had been reducing the qualifying amount by the unified credit as in the federal computation. This has been corrected to follow New York practice. Error found where there was out of state property, a New York resident and the date of death was after 5/25/90. This has been corrected Input error found in New York Limited Power of Appointment input. This error has been corrected.
Corrected error in Ohio computation. When Complex was selected, the adjustment to add back state tax to the marital and charitable deductions did not work correctly.
Corrected error in Oklahoma computation. The tax was computed on the family share using the non-family tax table.
Both Inter-Est and PRE were changed to return your computer screen to the screen mode it was in before you entered Inter-Est or PRE. Maintenance and SupportIf you are having trouble with a computation using Inter-Est, please call us. We provide support to all our users. Previous NewsLetter Home Page Top of Page Next NewsLetter
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