Minnesota Section 6166 Notes
| 1. | Minnesota has an estate tax but not an inheritance tax. |
| 2. | Page 2 of the instructions for the Minnesota Estate Tax return, Form M706, provides that Minnesota will recognize a §6166 election if IRS has allowed the election. The payment dates and terms of the election for IRS will apply for Minnesota purposes as well. See Chapter 289A.30 of the Minnesota statutes. |
| 3. | When payment of Minnesota tax is deferred under a Federal §6166 election, Minnesota interest will accrue at the rates in effect for each year. See Chapter 270C.40, subd. 2. |
| 4. | From the author's personal experience, if the IRS has allowed a bifurcated §6166 election, Minnesota will follow suit. |
| 5. | Unlike the IRS, however, Minnesota does not offer a reduced interest rate on estate tax deferred under §6166. The same underpayment interest rate applies to all unpaid Minnesota estate tax. |
| 6. | Also unlike the IRS, Minnesota interest on estate tax is simple interest, not compound interest. Page 3 of Form M706 has an interest computation schedule for determining the amount payable. |
| 7. | Minnesota provides an estate tax calculator on its website for tax computation purposes. Users are advised to independently verify the computations. |
| 8. | Chapter 291 of the Minnesota statutes contains the estate tax provisions. |
| 9. | Minnesota repealed its gift tax. It existed for only a short period - 2013 - and filings for that year are not required. |