How to Fill Out Pennsylvania Form REV-1505 (w/Examples) + FAQs

Pennsylvania Form REV-1505 is Schedule C – Closely-Held Corporation Stock, a required schedule attached to the PA Inheritance Tax Return REV-1500 that every personal representative must file when a decedent owned stock in a closely-held Pennsylvania corporation at the time of death. The schedule reports the fair market value of those shares so the Pennsylvania Department of Revenue can assess inheritance tax under the Inheritance and Estate Tax Act, 72 P.S. §§ 9101 et seq..

Getting REV-1505 wrong is one of the most common reasons inheritance tax returns get pulled for audit in Pennsylvania, with the Department of Revenue reviewing roughly 1 in 5 returns that report closely-held stock for valuation issues. This article walks you through every field, every attachment, and every valuation rule so you can file with confidence.

  • 📋 What REV-1505 is, who must file it, and how it ties to the main REV-1500 return
  • 🧾 A line-by-line walkthrough of every box on the schedule, with sample entries
  • 👨‍👩‍👧 Three full filled-out examples for spouse, lineal, and sibling transfers
  • ⚠️ The 10 mistakes that trigger audit letters and how to avoid each one
  • ⏰ Filing deadlines, the 5% prepayment discount, and how to pay penalties down

What the Form Is and Who Must File It

Pennsylvania Form REV-1505 is the closely-held corporation stock schedule for the PA Inheritance Tax Return (REV-1500). It is not a stand-alone return. You attach it to REV-1500 whenever the decedent owned stock in a corporation whose shares are not traded on a public exchange. The schedule asks for a detailed valuation of those shares as of the date of death, or, if elected, the alternate valuation date six months later.

The personal representative of the estate must file it. That means the executor named in the will, or the administrator appointed by the Register of Wills in the county where the decedent lived. If no formal estate is opened, the person who receives the stock must still report it. Pennsylvania imposes its inheritance tax on the transferee, not the estate as a whole, so the duty to file follows the property.

The form is required whenever the decedent owned even one share of a closely-held entity that was taxed as a corporation for federal purposes. That includes C-corporations, S-corporations, and limited liability companies that elected corporate tax treatment on IRS Form 8832. Partnership interests go on Schedule D (REV-1509), not REV-1505. Confusing these two schedules is a frequent rejection trigger at the Register of Wills.

The revision date stamped on the current form is in the lower-left corner of page one. Always confirm you are using the latest version by downloading the form fresh from the Department of Revenue forms library before filing. Older versions still circulate online and can cause processing delays.


Before You Start: Documents and Information You Need

Closely-held stock valuation is document-heavy work. The Department of Revenue follows the methodology in IRS Revenue Ruling 59-60, which requires a full picture of the company’s finances, industry, and ownership structure. Gather everything below before you open the form. Missing any one of these items is the single biggest cause of delay.

  • Five years of corporate balance sheets. The Department uses book value as one data point, and 5 years shows the trend. Missing years force the auditor to estimate, which usually hurts the estate.
  • Five years of profit and loss statements. Earnings history drives the capitalization-of-earnings method. Without it, the Department defaults to industry averages.
  • The corporation’s most recent federal income tax return (Form 1120 or 1120-S). It cross-checks the financials and confirms the entity type.
  • Any shareholder agreement or buy-sell agreement. A binding buy-sell can fix the value under Estate of True v. Commissioner principles. Without it, you lose a powerful valuation tool.
  • Stock certificates or the corporate stock ledger. You need the exact number of shares owned and the total shares outstanding.
  • Articles of incorporation and bylaws. These establish voting rights and any restrictions that affect value.
  • An independent appraisal report (when value is significant). Estates with stock worth more than $250,000 should engage a credentialed business appraiser.
  • The decedent’s death certificate. Required for the date-of-death valuation anchor.
  • Federal Form 706, if filed. Pennsylvania often follows the federal value when 706 is filed, so keep them consistent.

If you skip the appraisal on a high-value estate, the Department’s auditor will substitute its own valuation and you lose the right to discounts for lack of marketability and minority interest, which can swing the tax by tens of thousands of dollars.


Where to Get the Form and How to Access It

Download REV-1505 directly from the PA Department of Revenue forms page. The form is a fillable PDF. You can type entries directly into the PDF using Adobe Acrobat Reader or print it and complete it by hand in black ink.

You can also request a paper copy by calling the Department’s Inheritance Tax Division at 717-787-8327, or by visiting any Department of Revenue district office. Many county Registers of Wills also keep blank copies on hand. The form is free in every channel.

Pennsylvania does not yet offer full electronic filing of REV-1500 and its schedules through myPATH, the Department’s online portal. MyPATH currently accepts inheritance tax payments and account inquiries, but the return itself, including REV-1505, must be filed on paper with the Register of Wills in the decedent’s county. Always check myPATH before filing in case the rules have updated.

Make two clean copies of the completed schedule before you file. One stays with your estate records. The other accompanies the original you submit. The Register of Wills date-stamps both and returns the duplicate to you as your filing receipt.


Step-by-Step: How to Fill Out REV-1505 Line by Line

The schedule is one page with a header block, a body grid for stock entries, and a total line at the bottom. Every entry must be readable and consistent with the supporting documents you attach. Use the official line-by-line instructions in the REV-1501 booklet alongside this walkthrough.

Estate of (Decedent’s Name)

This box at the top of the schedule asks for the decedent’s full legal name as it appears on the death certificate and on the REV-1500. Type or print the name in all capital letters, last name first, then first name, then middle initial.

Sample entry: LOPEZ, MARIA E.

If the decedent used a nickname or a second married name on the corporate stock ledger, still write the legal name here. You can note the alias in the “Description” column inside the grid. A common mistake is to write the name as it appears on the stock certificate when it differs from the legal name, which creates a mismatch flag in the Department’s system. Many filers wrongly believe the name on the schedule must match the stock certificate, but the controlling document is always the death certificate.

File Number

This is the estate file number assigned by the Register of Wills when letters testamentary or letters of administration are issued. The format is typically the county code, the year, and a sequential number, like 51-2026-0473.

Write the number exactly as it appears on your letters. If you have not yet received letters, leave the field blank and add the number once issued, before the return is filed. A common mistake is to invent a number or use the federal EIN; doing so causes the schedule to be filed in the wrong county estate file. People often think the file number is the same as the decedent’s Social Security number, but those are entirely separate identifiers.

Column 1 – Item Number

Number each stock holding sequentially starting with 1. If the decedent owned shares in three different closely-held corporations, list them as items 1, 2, and 3. Each block of stock in a single corporation gets one line, even if the shares were purchased on different dates.

Sample entry: 1

The item numbers carry forward to any continuation pages and to the recap on page 3 of REV-1500. A common mistake is to renumber on a second page; numbering must continue, not restart. Many filers think they can group all stock under one item to save space, but each entity must have its own item to allow the Department to verify individual valuations. Use a separate REV-1505 if you run out of lines on the form.

Column 2 – Description (Name of Corporation, Class of Stock, Number of Shares)

Describe each holding with three pieces of information: the legal name of the corporation, the class of stock, and the exact number of shares owned by the decedent.

Sample entry: Lopez Family Bakery, Inc., 250 shares of common stock (no par), out of 1,000 shares outstanding.

Include the state of incorporation if the company is not a Pennsylvania corporation, because situs rules differ for foreign corporations. Note any voting restrictions or non-voting class designation in this column. The most common mistake is omitting the total shares outstanding, which prevents the Department from confirming the decedent’s ownership percentage and, by extension, whether minority discounts apply. Many filers think class of stock does not matter for closely-held entities, but preferred stock with a fixed liquidation preference is valued very differently from common stock.

Column 3 – Unit Value

Enter the fair market value per share as of the date of death (or the alternate valuation date if elected on REV-1500). Use the methodology in IRS Revenue Ruling 59-60, which weighs net asset value, earnings, dividend capacity, goodwill, and comparable transactions.

Sample entry: $425.00

Round to the nearest cent. If you applied a minority-interest discount or a lack-of-marketability discount, the unit value here is the post-discount value, and you attach a separate sheet showing the discount calculation. A common mistake is to use book value alone, which usually overstates value for service businesses and understates it for asset-heavy businesses; either error invites audit. Many filers think they can simply use the price from the buy-sell agreement; that price binds only if it meets the requirements of 26 U.S.C. § 2703 and the Pennsylvania regulations at 61 Pa. Code § 93.121.

Column 4 – Total Value

Multiply Column 3 by the number of shares from Column 2. Enter the product in Column 4 in dollars and cents.

Sample entry: $106,250.00

Double-check the math with a calculator and again with a spreadsheet. The Department’s auditors run every multiplication, and an arithmetic error on a single line shifts the entire tax. A common mistake is to enter the entire company’s value here instead of just the decedent’s share of it, which can inflate the taxable estate by hundreds of thousands of dollars. People often believe a typo here can be fixed later with a phone call, but a corrected REV-1500 must be filed as an amendment, which restarts the audit clock.

Total (Bottom of Schedule)

Add every value in Column 4 and enter the sum on the Total line at the bottom of the schedule. This number transfers to Line 3 of the Recapitulation on page 3 of REV-1500.

Sample entry: $318,750.00

If you used continuation pages, sum across every page and place the grand total on the last page only. A common mistake is to total each page separately and let the Department add them up; that increases the chance of an error and prompts a request for clarification. Many filers think the total here is the tax; it is the taxable value, and the tax is computed by applying the recipient’s rate class on REV-1500 itself.

Signature and Date (When Required)

REV-1505 itself does not have a separate signature line. Your signature on the main REV-1500 covers all attached schedules under penalty of perjury. Still, sign and date every continuation page if your appraiser prepared the valuation, and have the appraiser sign their own report attached to the schedule.

A common mistake is to assume the schedule is “unsigned” and therefore amendable without filing a new REV-1500. It is not; once REV-1500 is signed, every attached schedule is sworn to. Many filers mistakenly think they can swap pages of the schedule informally; any change requires a Supplemental Inheritance Tax Return REV-1543.

Attachments to REV-1505

Staple to the back of the schedule, in this order: (1) the business appraisal report, (2) five years of balance sheets, (3) five years of profit-and-loss statements, (4) the latest federal corporate return (1120 or 1120-S), (5) any shareholder or buy-sell agreement, and (6) the stock ledger or certificate copies.

Use a binder clip rather than staples if the package is more than 30 pages. A common mistake is to send only the appraisal, on the theory that it summarizes everything; the Department wants the source documents and will write you for them, costing 30 to 60 days. Many filers think attachments are optional unless requested; for closely-held stock they are mandatory under 61 Pa. Code § 93.121(b).


Three Filled-Out Examples Using Real Scenarios

The three scenarios below show how named filers complete REV-1505 from start to finish. Each entry uses italics so you can see exactly what gets written on the form. Read each table top to bottom; that is the order you will fill in the form.

Scenario 1 – Maria’s Surviving Spouse Inherits Family S-Corp Shares (0% Rate)

Maria Lopez is the executor for her late husband Hector, who owned 60% of Lopez Family Bakery, Inc., a Pennsylvania S-corporation. Maria is the sole beneficiary, so the spousal rate of 0% applies under 72 P.S. § 9116(a)(1.1).

Form Section What Maria Enters
Estate of LOPEZ, HECTOR M.
File Number 51-2026-0473
Item 1 – Description Lopez Family Bakery, Inc. (PA S-corp), 600 shares common stock, out of 1,000 outstanding
Item 1 – Unit Value $525.00 (after 15% lack-of-marketability discount)
Item 1 – Total Value $315,000.00
Attachments Appraisal by CPA John Reilly, 5 years financials, 1120-S for 2025, shareholder agreement
Total $315,000.00
Transfer To REV-1500 Recap, Line 3

Scenario 2 – Marcus Inherits His Father’s Closely-Held LLC Shares (4.5% Lineal Rate)

Marcus Brown’s father owned 100% of Brown Manufacturing, LLC, a Pennsylvania LLC that elected C-corporation tax treatment on Form 8832. As a lineal descendant, Marcus is taxed at 4.5% under 72 P.S. § 9116(a)(1).

Form Section What Marcus Enters
Estate of BROWN, JAMES R.
File Number 02-2026-0118
Item 1 – Description Brown Manufacturing, LLC (PA, taxed as C-corp), 1,000 units of membership interest, 100% ownership
Item 1 – Unit Value $1,250.00 (no marketability discount, sole owner)
Item 1 – Total Value $1,250,000.00
Attachments Independent appraisal by ASA-credentialed appraiser, 5 years financials, 1120 for 2025, operating agreement
Total $1,250,000.00
Transfer To REV-1500 Recap, Line 3

Scenario 3 – Janet Inherits a Minority Sibling Interest (12% Collateral Rate)

Janet Kim inherits 200 shares (10%) of Kim Industries, Inc. from her brother. Siblings are taxed at 12% under 72 P.S. § 9116(a)(1.2). Because Janet receives a non-controlling minority block, she qualifies for both a minority-interest discount and a lack-of-marketability discount.

Form Section What Janet Enters
Estate of KIM, DAVID S.
File Number 67-2026-0921
Item 1 – Description Kim Industries, Inc. (PA C-corp), 200 shares common stock, out of 2,000 outstanding (10% minority)
Item 1 – Unit Value $340.00 (after 20% minority discount and 25% marketability discount)
Item 1 – Total Value $68,000.00
Attachments Appraisal applying Mandelbaum factors, 5 years financials, 1120 for 2025, buy-sell agreement
Total $68,000.00
Transfer To REV-1500 Recap, Line 3

Beyond these three filers, also keep in mind Aisha, a charitable executor whose decedent left closely-held stock to a 501(c)(3); the schedule still gets filed, but the rate is 0% under 72 P.S. § 9111(c), and Carlos, an out-of-state executor whose Florida decedent owned stock in a Pennsylvania corporation; he files REV-1737-A nonresident return with a REV-1505 attached.


How to File the Completed Form

You file REV-1505 by attaching it to the completed REV-1500 and submitting the whole package to the Register of Wills in the decedent’s county of residence. The Register accepts the return, date-stamps it, collects the inheritance tax payment, and forwards the documents to the Pennsylvania Department of Revenue’s Inheritance Tax Division in Harrisburg.

For paper filing by mail, send the package by certified mail with return receipt to the Register of Wills office in the decedent’s county. Find the correct address from the county directory on the Pennsylvania Courts website. There is no separate fee for REV-1505 itself, but the Register of Wills charges a filing fee for the REV-1500, which varies by county and typically ranges from $25 to $100. Payment is by check or money order made payable to the Register of Wills of the relevant county. Expect 8 to 12 weeks to receive an assessment notice once the return is in Harrisburg.

For in-person filing, walk the package into the Register of Wills office during business hours, usually 8:30 a.m. to 4:30 p.m. Monday through Friday. The clerk date-stamps your copy on the spot and accepts payment in cash, check, or money order; many counties now also accept debit and credit cards through a third-party processor. Keep the stamped copy as your proof of filing.

For inheritance tax payments, you may pay online through myPATH by electronic check (no fee) or by credit card (with a processor fee). Pay within 3 months of the date of death to claim the 5% prepayment discount under 72 P.S. § 9142. Print the myPATH confirmation and staple it to your filed return as proof of timely prepayment.

The return itself is due 9 months after the date of death. Late filing triggers interest at the statutory rate and a penalty under 72 P.S. § 9136.


What Happens After You File

Once the Register of Wills forwards your package to Harrisburg, the Inheritance Tax Division logs it and assigns an auditor. The auditor reviews REV-1505 against the attached financials, the appraisal, and any related federal Form 706. If everything reconciles, the Department issues a Notice of Inheritance Tax Appraisement, Allowance or Disallowance of Deductions, and Assessment of Tax (Form REV-1547) within 12 to 18 months.

If the auditor questions your valuation, you receive a Request for Information letter asking for additional documentation, usually within 6 months of filing. Respond promptly. You generally have 30 days. Failing to respond means the auditor adjusts the value upward, which raises the tax and the interest.

You may appeal the assessment within 60 days of the notice by filing a Petition for Reassessment with the Board of Appeals under 72 P.S. § 9181. If you lose at the Board of Appeals, you may appeal to the Board of Finance and Revenue and then to Commonwealth Court. Closely-held stock valuation disputes are the single most appealed inheritance tax issue in Pennsylvania.

Once the tax is paid and the assessment is final, the Department issues a Form REV-1796 Inheritance Tax Receipt, which the executor needs to close the estate at the Orphans’ Court.


Mistakes to Avoid When Filling Out the Form

Closely-held stock is the most error-prone schedule on the entire REV-1500 package. Avoid these ten mistakes and you cut your audit risk in half.

  • Using book value as fair market value. Consequence: the Department substitutes a higher valuation using earnings methodology and assesses additional tax plus interest.
  • Skipping the appraisal on an estate over $250,000. Consequence: minority and marketability discounts are disallowed for lack of substantiation.
  • Reporting partnership interests on REV-1505 instead of REV-1509. Consequence: the schedule is kicked back and your filing is treated as incomplete.
  • Omitting total shares outstanding in Column 2. Consequence: the auditor cannot verify ownership percentage and requests clarification, delaying the assessment 30 to 60 days.
  • Inventing or misusing the estate file number. Consequence: the return is misfiled at the Register of Wills and may never reach the Department.
  • Stapling the appraisal in front of REV-1500 instead of behind REV-1505. Consequence: clerks lose the appraisal, and the schedule is treated as unsupported.
  • Using a buy-sell price without meeting § 2703. Consequence: the Department disregards the buy-sell value and substitutes fair market value, often higher.
  • Forgetting to transfer the total to Line 3 of the REV-1500 Recap. Consequence: the tax computation is wrong and the entire return is corrected upward.
  • Taking discounts without showing the math. Consequence: discounts are denied in full, sometimes adding 30% or more to the taxable value.
  • Filing after the 9-month deadline. Consequence: statutory penalties and interest accrue from the date of death under 72 P.S. § 9136.

Do’s and Don’ts

These quick reminders catch the small-but-costly habits that trip up first-time filers.

  • Do hire an ASA, ABV, or CVA-credentialed appraiser for any estate where closely-held stock exceeds $250,000, because the Department gives substantial weight to credentialed valuations.
  • Do match REV-1505 entries to the federal Form 706 if one is filed, because Pennsylvania often follows the federal value and inconsistency invites audit.
  • Do pay 90% of the estimated tax within 3 months of death to lock in the 5% prepayment discount.
  • Do keep certified-mail receipts and Register of Wills date-stamps for every filing, because they are your only proof in an appeal.
  • Do list every closely-held holding on its own line, because grouping is treated as understatement.
  • Do use the current revision of the form from the Department’s website, because old versions are routinely rejected.
  • Don’t estimate the share count from memory; pull it from the corporate stock ledger to avoid mismatches.
  • Don’t use the alternate valuation date for Pennsylvania unless you elected it on Form 706, because Pennsylvania ties its election to the federal one.
  • Don’t sign REV-1500 until every schedule, including REV-1505, is complete; you swear to all of them at once.
  • Don’t mail loose pages, because clerks can lose them; bind or clip the package.
  • Don’t ignore the Request for Information letter; missing the 30-day window costs you the right to discounts.
  • Don’t assume the Register of Wills will catch your errors; they only confirm signatures and payment, not substance.

Pros and Cons of Filing on Your Own vs. With Help

For small, simple estates a pro se executor can finish REV-1505 in an afternoon. For estates with significant closely-held stock, professional help usually saves more than it costs. Weigh both sides.

  • Pro – Save fees. Filing pro se skips $2,000-$10,000 in attorney and appraiser fees on simple estates.
  • Pro – Stay close to the records. Family executors often know corporate history better than outsiders, which helps the valuation narrative.
  • Pro – Faster turnaround. No scheduling delays with appraisers when the value is small and undisputed.
  • Pro – Confidentiality. Pro se filing keeps sensitive financials inside the family.
  • Pro – Direct control. You make every valuation call yourself rather than negotiating with a CPA.
  • Con – Audit exposure. Closely-held stock is the single most-audited inheritance tax item, and pro se filers rarely win valuation disputes.
  • Con – Lost discounts. Without a credentialed appraisal, the Department routinely disallows minority and marketability discounts.
  • Con – Time cost. A complete valuation package can take 40-80 hours of executor time.
  • Con – Personal liability. The executor is personally liable for underpayment if the return is wrong under 20 Pa. C.S. § 3392.
  • Con – Missed deadlines. Without professional reminders, the 3-month discount window and the 9-month filing deadline are easy to blow.

Paper Filing vs. Online Payment Channel

Feature Paper at Register of Wills
Required for REV-1500 and all schedules including REV-1505
Fee $25-$100 county filing fee
Proof of filing Date-stamped duplicate
Processing time 12-18 months to assessment
Best for The return itself, always
Feature myPATH Online
Required for Nothing yet, but optional for payments
Fee Free for e-check, processor fee for credit card
Proof of filing Confirmation number and email receipt
Processing time Payment posts within 2-3 business days
Best for Prepayments for the 5% discount

Key Entities and How They Connect

The PA Department of Revenue assesses and collects the tax. The county Register of Wills is the local intake point and the office that issues letters testamentary. The Orphans’ Court Division supervises the estate and accepts the final accounting once tax is paid. The Board of Appeals handles first-level disputes, and the Board of Finance and Revenue handles second-level appeals.

REV-1505 interacts with several other forms. It feeds Line 3 of the REV-1500 Recapitulation. Partnership interests instead go on REV-1509 (Schedule D). Non-PA decedents file REV-1737-A instead of REV-1500. Federal valuation interacts through Form 706, which the Department treats as persuasive evidence under 61 Pa. Code § 93.121.

Pennsylvania case law also shapes the schedule. In In re Estate of Rosengarten, the Commonwealth Court affirmed that lack-of-marketability discounts are allowable when properly substantiated, and the Department’s policy bulletins follow that ruling. The methodology of IRS Revenue Ruling 59-60 is universally cited by Pennsylvania auditors when reviewing REV-1505 entries.


FAQs

Is REV-1505 a stand-alone return?

No. REV-1505 is a schedule attached to the REV-1500 Pennsylvania Inheritance Tax Return. You cannot file it alone, and a REV-1500 reporting closely-held stock without it is incomplete.

Do I file REV-1505 for partnership or LLC interests?

No. Partnership and most LLC interests go on Schedule D (REV-1509). REV-1505 is only for stock in entities taxed as corporations, including LLCs that elected corporate taxation on IRS Form 8832.

What is the inheritance tax rate on closely-held stock?

Yes, rates depend on the recipient. The rate is 0% for a surviving spouse or charity, 4.5% for lineal descendants, 12% for siblings, and 15% for all other heirs under 72 P.S. § 9116.

Can I take a minority-interest discount on REV-1505?

Yes, when the decedent owned a non-controlling block. You must attach an appraisal showing the discount methodology and supporting comparables, or the Department will disallow it.

Do I write the name on the stock certificate or the legal name in the “Estate of” box?

No, never the stock certificate name if it differs. Always write the decedent’s legal name as it appears on the death certificate to avoid a mismatch flag.

What if I don’t know the total shares outstanding for Column 2?

No entry is acceptable without it. Pull the number from the corporate stock ledger, the latest Form 1120 Schedule G, or the bylaws before you complete the column.

Does the unit value in Column 3 include discounts?

Yes. Enter the post-discount per-share value in Column 3, and attach a separate sheet that walks through how you reached that value from the gross fair market value.

Should I file REV-1505 if the decedent owned only one share?

Yes. Any ownership interest in a closely-held corporation, no matter how small, requires the schedule because the Department cannot assess tax without it.

Is the 5% prepayment discount available on tax attributable to REV-1505 stock?

Yes. The 5% discount under 72 P.S. § 9142 applies to all inheritance tax paid within 3 months of death, including tax on closely-held stock reported on REV-1505.

What is the deadline to file REV-1505?

Yes, it follows the REV-1500 deadline of 9 months after the date of death. Extensions of time to file are available, but extensions of time to pay are not.

Can I amend REV-1505 after filing?

Yes, by filing a Supplemental Inheritance Tax Return REV-1543 with the corrected schedule. The amendment must be filed before the assessment becomes final.

Where do I get a credentialed business appraiser in Pennsylvania?

Yes, through the American Society of Appraisers, the AICPA’s ABV directory, or the National Association of Certified Valuators and Analysts. Choose one with ASA, ABV, or CVA credentials for full Department acceptance.

Does a buy-sell agreement price bind the Department?

No, not automatically. The price binds only if the agreement meets the requirements of 26 U.S.C. § 2703 and the Pennsylvania regulations at 61 Pa. Code § 93.121, including a bona fide business purpose and arm’s-length terms.

Can I e-file REV-1505 through myPATH?

No, not yet. MyPATH currently accepts inheritance tax payments and account inquiries, but the return and its schedules must still be filed on paper with the Register of Wills.