PDF document

- 1 -

Department of Taxation and Finance
ET-415
Application for Deferred Payment of Estate Tax (9/22)
When the estate consists largely of an interest in a closely held business
For the estate of a decedent whose date of death is on or after January 1, 2019

Attach this completed form and supporting documents to the applicable Form ET-706, used for dates of death on
or after January 1, 2019, and mail to the address shown in Form ET-706-I.
Decedent’s last name First name Middle initial Social security number (SSN)

Estate tax return due date Number of annual Due date of first installment of tax plus interest Date of death
installments elected

Are you electing to make installment payments on a deficiency? ............. Yes No ........ If Yes, see instructions on back.

1 Value of decedent’s interest in a closely held business ........................................ 1.
2 Federal adjusted gross estate (Form ET-706, used for dates of death on or after
January 1, 2019, Schedule A, Part 1, line 8 or Schedule A, Part 2, line 19 minus the
total from federal Form 706 Part 5, lines 18, 19, and 20) (see instructions) ................... 2.

3 Percentage ratio (see instructions; round the result to the fourth decimal place) ........... 3. %
4 Net estate tax payable (from Form ET-706, used for dates of death on or after
January 1, 2019, line 4).......................................................................................... 4.
5 Maximum amount of estate tax that may be, or could have been, deferred
(multiply line 4 by the percent on line 3) .................................................................. 5.

6 Amount of line 5 you elect to pay in installments (for deficiencies, see instructions) .. 6.
7 Divide line 6 by the number of annual installments you elected above, not
to exceed 10...................................................................................................... 7.

8 Amount of tax not deferred, including the part of a deficiency attributable to
installments already due (see instructions) .......................................................... 8.
9 Net prior tax payments to New York State (attach a schedule of dates and amounts;
see instructions) ................................................................................................... 9.
10 Amount due with this application, if any (subtract line 9 from line 8). If line 9 is
greater than line 8, see instructions................................................................... 10.
Make check or money order payable in U.S. funds to Commissioner of Taxation and Finance and attach this application to the
applicable Form ET-706.
Executor’s last name First name MI Signature of executor Date

Firm’s name if preparer other than executor (or yours if self-employed) Signature of preparer if other than executor Date

Address of preparer City State ZIP code E-mail address of preparer

Firm’s employer identification number Preparer’s PTIN or SSN Preparer’s NYTPRIN or Excl. code

For Department use only
Application approved for $ . Payable in annual installments of $ , plus interest.
Application denied for the following reason:

Signature of reviewer Date

- 2 -

Page 2 of 3 ET-415 (9/22) Instructions
General information the remaining installments annually by the date one year after
An executor of the estate must sign this form (see Executor the due date of the preceding installment. There can be no more
information in Form ET-706-I, Instructions for Form ET-706) and than 10 installment payments in total. Interest must be paid as
attach it to Form ET-706, New York State Estate Tax Return, that part of each installment payment of the tax (see Exceptions
is used for dates of death on or after January 1, 2019, to apply below).
for an extension of time to pay the portion of the New York State Acceleration of payments – If the estate fails to make
estate tax applicable to the value of the decedent’s interest in payments of tax or interest within six months of the due date,
a closely held business included in the gross estate. Also, you the Tax Department may terminate the right to make installment
must mark the appropriate Yes box on page 1 of Form ET-706, payments and force an acceleration of payment of the tax upon
indicating the estate intends to make the election. notice and demand.
If the decedent had interests in two or more qualifying closely Generally, if any portion of the interest in the closely held
held businesses, they will be treated as an interest in one business which qualifies for installment payments is distributed,
business for calculation purposes. sold, exchanged, or otherwise disposed of, or money and other
Along with Form ET-415, the estate must submit a statement property attributable to such an interest is withdrawn, and the
aggregate of these events equals or exceeds 50% of the value
identifying which properties reported on the estate tax return of the interest, then the right to make installment payments will
constitute the closely held business, and stating all facts forming be terminated, and the unpaid portion of the tax will be due upon
the basis that the estate qualifies for the deferred payment of the notice and demand.
estate tax.
Interest rates on the deferred tax – Interest accrues on
Attach the completed Form ET-415 and supporting documents to the deferred tax from the estate tax return due date, without
Form ET-706. If you fail to attach Form ET-415, mail it, together regard to any extension of time for filing. However, a reduced
with any supporting documents, to the mailing address shown in rate of interest is imposed on the lesser of $54,000, or the tax
Form ET-706-I. attributable to the decedent’s interest in a closely held business
Election to defer payment of the estate tax attributable (see Exceptions below). For dates of death on or after January 1,
to a closely held business – The executor may elect to pay 1998, the reduced rate of interest is 2%.
that portion of the New York State estate tax attributable to The deferred tax that exceeds $54,000 is not eligible for a
the decedent’s interest in a closely held business in annual reduced rate of interest, and the prevailing rate of interest is
installments of not less than two, and not more than 10, equal charged.
payments.
Exceptions to the amount eligible for a deferral, due date for
The estate is required to promptly pay the non-deferred portion payment of tax, and reduced rate of interest:
of the New York State estate tax and applicable accrued penalty
and interest, unless it has been granted an extension of time to 1. In the case of a deficiency, only the amount of tax attributable
pay that portion of the tax. The deferred payment plan will be to the closely held business is eligible for deferral.
cancelled if the non-deferred portion and any applicable penalty 2. If the executor makes the election provided in IRC
and interest are not paid on time. section 6166(b)(8) to treat holding company stock owned
by the decedent as business company stock to meet the
Qualifications – All of the following conditions must be met: 35% requirement, the 5-year deferral for payment of the tax,
1. The decedent’s interest in a closely held business must be and the 2% interest rate, both mentioned above, will not apply.
more than 35% of the federal adjusted gross estate (see In this case, the first installment payment of tax would be due
instructions for line 2, below). on the return due date.
2. The 35% requirement must also be met by computing the
percentage ratio by adding the value of any gifts made Line instructions
by the decedent within three years of death to the federal Line 1 – Enter the market value or special use value of the
adjusted gross estate based on Internal Revenue Code (IRC) decedent’s interest in the closely held business. If the estate
section 2035(c)(2). elected to use the alternate valuation date, use the appropriate
3. If the estate is required to file a federal estate tax return, the value as of that date.
estate must make the election for the federal estate tax. Line 2 – Federal adjusted gross estate – The federal adjusted
Time limit for making the election – The election must be gross estate is the amount reported on page 2, Schedule A,
made within nine months after the date of death, or 15 months Part 1, line 8 or Schedule A, Part 2, line 19, of Form ET-706 used
after the date of death when the estate has been granted an for dates of death on or after January 1, 2019, reduced by the
extension of time to file the estate tax return. (See Form ET-133, deductions allowable under IRC sections 2053 or 2054 (the total
Application for Extension of Time to File and/or Pay Estate Tax.) of the amounts reported on federal Form 706 Part 5, lines 18, 19,
and 20).
For a deficiency, the election to pay the amount of tax
attributable to the closely held business in installments must be Line 3 – Percentage ratio – Test 1 – Divide line 1 by line 2.
made within 60 days after the issuance of a notice and demand If the result is greater than 35%, enter the result on line 3 and
for payment. round the result to the fourth decimal place. Continue with Test 2,
below. If the result is 35% or less, the estate fails to qualify and
Estate tax return due date – Enter the date that is nine months should not file this form.
after the date of death.
Test 2 – If the decedent made any gifts within three years prior
Time for payment – Under the installment method, the executor to death, add to the amount on line 2, the value of those gifts. If
may elect to defer payment of the qualified estate tax, but not any of those gifts were interests in the closely held business, add
interest. Interest on the unpaid portion of the tax is not deferred to the amount on line 1 the value of those gifts. Divide line 1 by
and must be paid annually. The first installment of the tax due line 2. If the result is greater than 35%, the estate qualifies. Use
may be deferred for up to five years from the original payment the percentage shown on line 3 from Test 1. If the result is 35%
due date. After the first installment of tax is paid, you must pay or less, the estate does not qualify and should not file this form.

- 3 -

ET-415 (9/22) Page 3 of 3

Line 5 – Maximum amount that could be deferred – This Code Exemption type Code Exemption type
represents the portion of the net estate tax attributable to the
value of the closely held business. 01 Attorney 02 Employee of attorney
Line 6 – Amount elected for installment payments – Enter 03 CPA 04 Employee of CPA
that part of the amount on line 5 that the estate elects to pay in 05 PA (Public Accountant) 06 Employee of PA
installments.
07 Enrolled agent 08 Employee of enrolled agent
For a deficiency – If the estate previously elected to defer the 09 Volunteer tax preparer 10 Employee of business
tax attributable to a closely held business, the amount of tax preparing that business’
eligible for deferral is limited to the maximum amount of tax return
the estate could have deferred based on a return reflecting
the adjustments that resulted in the deficiency and reduced
by the amount previously elected to be paid in installments. See our website for more information about the tax preparer
This amount is prorated to the installments previously elected. registration requirements.
The part of the deficiency prorated to future installments is
paid with that installment. The part of the deficiency prorated Fee for payments returned by banks
to an installment already paid or currently due is paid with this The law allows the Tax Department to charge a $50 fee when
application. a check, money order, or electronic payment is returned by
a bank for nonpayment. However, if an electronic payment is
If the executor did not elect to pay the tax on the closely held returned as a result of an error by the bank or the department,
business in installments, the executor has 60 days after the the department won’t charge the fee.
issuance of a notice and demand to make an election to pay
the deficiency in installments. If a federal estate tax return If your payment is returned, we will send a separate bill for
is required, the executor must also elect to pay the federal $50 for each return or other tax document associated with the
deficiency in installments. returned payment.

Line 7 – Amount of annual installment of tax –Divide the Privacy notification
amount on line 6 by the number of annual installments elected
(that is, two or more equal annual installments, not to exceed New York State Law requires all government agencies that
10). maintain a system of records to provide notification of the legal
authority for any request for personal information, the principal
Line 8 – Amount of tax not deferred – Include the amount purpose(s) for which the information is to be collected, and
of tax that is not eligible for deferral, the amount of tax that the where it will be maintained. To view this information, visit our
estate chooses not to defer, and the amount of a deficiency website, or, if you do not have Internet access, call and request
allocated to payments that are due. Publication 54, Privacy Notification. See Need help? for the
Web address and telephone number.
The Tax Department will bill for the annual installment of interest,
or tax plus interest.
Line 9 – Net prior tax payments – Enter the net amount of prior Need help?
tax payments you made to New York State. If you previously
filed one or more returns and received one or more refunds, you Visit our website at www.tax.ny.gov
must reduce the total amount of payments by the total amount of • get information and manage your taxes online
refunds and report this net amount on line 9. If you did not make
any prior payments, enter .0 • check for new online services and features
Line 10 – If line 9 is greater than line 8, enter 0. Any Telephone assistance
overpayment of tax and/or interest will be applied to your
deferred tax. Estate Tax Information Center: 518-457-5387
To order forms and publications: 518-457-5431
Paid preparer’s signature Text Telephone (TTY) or TDD Dial 7-1-1 for the
If you pay someone to prepare your form, the paid preparer must equipment users New York Relay Service
also sign it and fill in the other blanks in the paid preparer’s area
of your form. A person who prepares your form and does not
charge you should not fill in the paid preparer’s area.
Paid preparer’s responsibilities – Under the law, all paid
preparers must sign and complete the paid preparer section of
the form. Paid preparers may be subject to civil and/or criminal
sanctions if they fail to complete this section in full.
When completing this section, enter your New York tax preparer
registration identification number (NYTPRIN) if you are required
to have one. If you are not required to have a NYTPRIN, enter
in the NYTPRIN excl. code box one of the specified 2-digit
codes listed below that indicates why you are exempt from the
registration requirement. You must enter a NYTPRIN or an
exclusion code. Also, you must enter your federal preparer tax
identification number (PTIN) if you have one; if not, you must
enter your social security number.

PDF file checksum: 4136865414

(Plugin #1/9.12/13.0)