Hawaii Hawaii Generation-Skipping Transfer Tax Report

Hawaii Generation-Skipping Transfer Tax Report
Form M-6GS, Rev. 2020, Hawaii Generation-Skipping Transfer Tax Report
Clear Form
	
	FORM	            
STATE OF HAWAII — DEPARTMENT OF TAXATION

THIS SPACE FOR DATE RECEIVED STAMP

HAWAII GENERATION-SKIPPING
		M(REV.
-6GS
2020)	                
		           
TRANSFER TAX RETURN
		
FOR CALENDAR YEAR 20_ _

		       

(For generation-skipping transfers after December 31, 2019)
		                 READ INSTRUCTIONS BEFORE COMPLETING RETURN

• PRINT OR TYPE •

                AMENDED Return (Attach Sch AMD)	
Name (Skip person distributee or trust)	

Social Security Number

Name and title of person filing return	

Federal Employer Identification Number

	
Mailing address of person filing return (Number and Street, including apartment number or rural route)
	
City, town or post office, State and Postal/ZIP code

COMPUTATION OF TAX

  Type of federal Generation-Skipping Transfer (GST) Tax Return filed:  

TAX

PENALTY
AND
INTEREST

 Form 706-GS(D)     

Form 706-GS(T)

	 1	 Enter the taxable amount from the federal Form 706-GS(D), line 5 or federal Form 706-GS(T),
Schedule A, line 6, that was filed for the transfer being reported on this form		
1
	2	 If filing federal Form 706-GS(D), multiply line 1 by 2.25%. If filing federal Form 706-GS(T),
multiply line 1 by the result of 2.25% multiplied by the inclusion ratio (from federal Form
706-GS(T), Schedule A, line 7)		 2
	3	 Total amount of taxable transfers subject to the Hawaii GST tax		 3
	4	 Total amount of taxable transfers subject to the federal GST tax		 4
	5	 Divide line 3 by line 4 (compute to three decimal places)		5
	6	 Multiply line 2 by line 5 (round to the nearest dollar)		 6
		 Note: If any property is located in states other than Hawaii, complete lines 7 through 11,
otherwise go to line 13
	7	 Enter the taxable amount subject to the GST tax imposed by
another state(s)		7
	8	 Enter the total amount of taxable transfers subject to the
federal GST tax		 8
	9	 Divide line 7 by line 8 (compute to three decimal places)		 9
	10	 Multiply line 6 by line 9 (round to the nearest dollar)		 10
	11	 Enter the total GST taxes paid to another state(s)		 11
	12	 Enter the lesser of line 10 or 11 (allowable credit for GST taxes paid to another state(s)		 12
	13	 Hawaii GST tax: Line 6 minus line 12 or amount from line 6 if no entries in lines 7 through 11		13
	14	 Penalty		 14
	15	 Interest (From         to         )		15
	16	 Total tax, penalty, and interest (add lines 13, 14, and 15)		 16
	17	 Amount paid with extension		 17
	18	 Balance due or (refund) (line 16 minus line 17)		 18
	19	 Amount paid		 19
DECLARATION

I declare, under the penalties set forth in section 231-36, HRS, that this return (including accompanying schedules or statements) has been examined by me and, to the
best of my knowledge and belief, is a true, correct, and complete return, made in good faith, pursuant to the Estate and Generation-Skipping Transfer Tax, Chapter 236E,
HRS. Declaration of preparer is based on all information of which preparer has any knowledge.

PLEASE
SIGN 				

HERE    Signature of Distributee, Trustee, or Authorized Representative		      Date
Preparer’s

      
Signature and date 	
      
Print Preparer’s

	

Preparer’s identification number	



PAID
	
	
	 	
Name
PREPARER’S
Federal 
USE ONLY Firm’s name (or yours			

Check if
self-employed  £

E.I. No.
if self-employed),    
	
address, and Postal/Zip Code		   Phone No.  

	

	

	

A COPY OF THE FEDERAL GENERATION-SKIPPING TRANSFER TAX RETURN MUST BE ATTACHED TO THIS RETURN
		
M6GS_I 2020A 01 VID01

ID NO 01

FORM M-6GS (REV. 2020)

FORM M-6GS
(REV. 2020)	

PAGE 2

INSTRUCTIONS FOR FORM M-6GS

(NOTE: References to “married” and “spouse” are also references to “in a civil union” and “civil union partner,” respectively.)

GENERAL INSTRUCTIONS
NOTE: The Hawaii Estate and Generation-Skipping Transfer Tax Law conforms to the Internal
Revenue Code (IRC), with the exception of the
excludable amount of $5,490,000. The exclusion
amount of $5,490,000 is set forth for the decedent in chapter 11 of the IRC as amended as of
December 21, 2017, as if the decedent died on
December 31, 2017.
NOTE: For transfers before January 26, 2012,
use Form M-6GS (Rev. 2010)
NOTE: References to the federal Generation
Skipping Transfer Tax means the tax as determined under federal law as it read on December
31 of the year prior to the year that the transfer
being reported was made.
Purpose of Form — Section 236E-17, Hawaii
Revised Statutes, provides for a state GST tax.
The tax is imposed on all generation-skipping
transfers of property in Hawaii or property from
a resident trust. The tax is due on a GST (other
than a direct skip) that occurs at the same time
as, or as a result of, the death of an individual.
Property subject to Hawaii GST tax includes all
real and personal property subject to the federal
GST tax.
A credit is allowed for GST taxes paid to another
state. A GST is exempt from Hawaii’s GST tax if
the GST is exempt from the GST tax imposed
by another state. The exemption must specifically reference Hawaii, or must contain a reciprocal provision under which the transfers would
otherwise be subject to the jurisdiction of that
state. The amount of the tax due is credited with
the lesser of (1) the amount of the tax paid to
the other state; or (2) an amount computed by
multiplying the Hawaii GST tax by a fraction, the
numerator of which is the taxable transfer subject
to the GST tax paid to the other state, and the
denominator of which is the total amount of the
taxable transfers subject to the federal GST tax.
Who Must File —The Form M-6GS is filed by the
person(s) responsible, or who would be responsible, for filing the federal GST tax return.
When to File — Form M-6GS must be filed by
April 15th of the year following the calendar year
of the decedent’s death. An automatic six-month
extension to file the return will be granted if an
extension has been granted by the Internal Revenue Service (IRS). If the date for filing Form 706GS(D) or Form 706-GS(T) has been extended
by the IRS, Form M-6GS will be due on the date
that is specified by the IRS. An IRS-approved
copy of federal Form 7004 must be submitted
with Form M-6GS. If a request for extension has
been denied by the IRS, there will be no penalty
assessed if Form M-6GS is filed within the time
specified by the IRS. Attach a copy of federal
Form 7004 showing the date on which the return
may be filed without penalty.
If you are not required to file the federal GST tax
return, you must file Form M-68 for an automatic
six-month extension. An automatic extension of
time for filing a return shall be allowed only upon
the following two conditions: (1) on or before the
due date of the return prescribed by the statute,
there shall have been paid, through a payment
accompanying the application for the extension,
an amount equal to the estimated GST tax pay-

able; and (2) within the time specified by the automatic extension, the return shall be filled, accompanied by payment of the remaining tax liability.
If these conditions are not met, the delinquent
penalty and interest will be charged on the tax as
if no extension had been granted.
An extension of time to file is not an extension of
time to pay the tax. Any request for an extension
of time to file Form M-6GS must be accompanied by payment of the tax. Interest will be owed
on any additional amount of tax over the amount
paid with the extension to file.
Where to File —The completed return is
mailed to the Hawaii Department of Taxation,
P. O. Box 259, Honolulu, HI 96809-0259.
Payment of Tax — Due date of payment is the
same as time for filing. However, any tax due but
not paid by the due date will incur interest from
the due date, regardless of any extension of time
to file the return. For taxable distributions, the
GST tax is paid by the transferee; in the case of
a taxable termination or a direct skip from a trust,
the tax is paid by the trustee. For a direct skip
other than a direct skip from a trust, the transferor
is liable for paying the tax.
Amount Paid with Extension — Persons who
will be filing Form M-6GS after the filing deadline (April 15th after the year of the decedent’s
death) because they have an extension, must
make a tax payment prior to filing Form M-6GS
by submitting a copy of the extension filed with
the IRS and payment for the taxes due. Include
this amount on line 17.
Federal Form Requirement — A complete
true copy of the appropriate federal GenerationSkipping Tax Return Form 706-GS(D)(Rev. June
2019) or Form 706-GS(T)(Rev. November 2013)
must be filed with this return. Complete federal
Form 706-GS(D)(Rev. June 2019) through line
7, or federal Form 706-GS(T)(Rev. November
2013) through line 10. The federal GST tax is to
be determined under federal law as it read on December 31 of the year prior to the year that the
transfer being reported was made.
Amended Return — An amended return must
be filed for any changes to Form M-6GS. Check
the box at the top of page 1 to indicate that it is
an amended return. Complete Form M-6GS with
all of the corrected information and attach Schedule AMD, Explanation of Changes on Amended
Return, to the return. Also, attach all schedules,
forms, and attachments required to file a complete return. Attach any federal Form 706-GS(D)
(Rev. June 2019) or 706-GS(T)(Rev. November
2013) schedules affected by the corrections or
changes.
An amended return must be filed anytime Form
M-6GS needs an adjustment. In the case of
property located in states other than Hawaii, an
amended Form M-6GS must be filed when the
tax paid to other states changes. Interest and/or
penalties paid to other states for delinquent tax
payments cannot be included on line 11.

(b)	Penalty for failure to pay after filing timely report is 20% of the tax unpaid within 60 days of the
prescribed due date.
(c)	Interest at the rate of 2/3 of 1% per month or
part of a month shall be assessed on unpaid taxes and penalties after the due date (nine months
after the date of the decedent’s death), whether
or not that first calendar day falls on a Saturday,
Sunday, or legal holiday.

SPECIFIC INSTRUCTIONS
Name — Enter the name of the skip person distributee or the trust.
Social Security Number — For skip person
distributees who are individuals, enter the distributee’s social security number, otherwise leave
blank.
Federal Employer Identification Number
(FEIN) — Enter the FEIN of the trust distributee
or trust.
Name and Title of Person Filing Return — If
the skip person distributee is a trust, enter the
trustee’s name. If the skip person distributee is a
minor or is under some disability that precludes
the individual from filing the return, enter the
name of the person who is legally responsible for
conducting the affairs of the distributee, such as
a parent or guardian, also, include the title or relationship to the distributee.
Address — Enter the mailing address of the person filing the return.
Type of Federal Return Filed — Check the appropriate box. Be sure to attach a complete true
copy of the appropriate federal return to Form
M-6GS.
Complete lines 7 through 11 ONLY if there is
property located in states other than Hawaii.
Line 7 — Enter the appropriate taxable amount:
A.	 Resident, enter the taxable amount of the
transferred or distributed property located outside of Hawaii subject to the GST tax imposed by
another state(s) (includes intangible and tangible
property with a situs outside Hawaii).
B.	 Nonresident, enter the taxable amount of the
transferred or distributed property less the value
of any interest in Hawaii real and tangible personal property located in Hawaii subject to the
GST tax imposed by another state(s). Include the
amount of intangible property with a business situs in Hawaii. (Identify Hawaii property on federal
Form 706-GS(D) or 706-GS(T)).
Line 8 — Enter the total amount of taxable transfers subject to the federal GST tax.
Line 11 — Enter the total of all GST taxes actually paid to any state other than Hawaii in respect
of any property subject to the GST tax.
Line 12 — Compare lines 10 and 11 and enter
the lesser amount. This is the allowable credit for
GST taxes paid to another state(s).

Penalty and Interest —

Line 17 — Attach an approved copy of federal
Form 7004.

(a)	Penalty for failure to file is equal to 5% of the
tax due for each month or part of a month that the
report is delinquent, up to a maximum of 25% of
the tax payable.

Line 19 — Pay the amount shown. Attach a
check or money order payable to “Hawaii State
Tax Collector”; pay in U.S. dollars drawn on any
U.S. bank. Do not send cash.