Instructions For Form 706-Gs(D) - 2013
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1
2
3Instructions for
Department of the Treasury
Internal Revenue Service
Form 706-GS(D)
(Rev. August 2013)
Generation-Skipping Transfer Tax Return for Distributions
for Automatic Extension of Time To
less of the actual value of the
Section references are to the Internal
Revenue Code unless otherwise noted.
File Certain Business Income Tax,
property.
Information, and Other Returns. The
Future Developments
Interest will be charged on taxes
extension is automatic, so you do not
not paid by their due date, even if an
For the latest information about
have to sign the form or provide a
extension of time to file is granted.
developments related to Form
reason for your request. You must file
Interest is also charged on any
706-GS(D) and its instructions, such
Form 7004 on or before the regular
additions to tax imposed by section
as legislation enacted after they were
due date of Form 706-GS(D). See
6651 from the due date of the return
published, go
to
Form 7004 for more information.
(including any extensions) until the
form706gsd.
addition to tax is paid.
Where To File
General Instructions
Return preparer. The Small
File Form 706-GS(D) at the following
Business and Work Opportunity Tax
address:
Purpose of Form
Act of 2007 extended return preparer
Department of the Treasury
penalties to all tax return preparers.
Form 706-GS(D) is used by a skip
Internal Revenue Service
Under section 6694 and its
person distributee to calculate and
Cincinnati, OH 45999
regulations, tax return preparers, who
report the tax due on distributions
prepare any return or claim for refund
from a trust that are subject to the
Penalties and Interest
which shows an understatement of tax
generation-skipping transfer (GST)
liability due to willful or reckless
tax.
Section 6651 provides penalties for
conduct, can be penalized $5,000 or
both late filing and late payment
Who Must File
50% of the income earned (or income
unless there is reasonable cause for
to be earned), whichever is greater,
In general, any skip person who
the delay. The law also provides
for each return.
receives a taxable distribution from a
penalties for willful attempts to evade
trust must file Form 706-GS(D).
payment of tax.
Signature
Trustees are required to report
A return is late when it is filed after
Either the distributee or an authorized
taxable distributions to skip person
the due date, including extensions.
representative must sign Form
distributees on Form 706-GS(D-1),
The late filing penalty will not be
706-GS(D).
Notification of Distribution From a
imposed if the taxpayer can show that
Generation-Skipping Trust.
If you fill in your own return, leave
the failure to file a timely return is due
the Paid Preparer Use Only space
to reasonable cause.
If you receive a Form 706-GS(D-1)
blank. If someone prepares your
and the inclusion ratio found on Part II,
Reasonable cause determinations.
return and does not charge you, that
line 3, column d, is zero for all
If you receive a notice about penalties
person should not sign the return.
distributions, you do not need to file
and interest after you file Form
Form 706-GS(D). If you are required
Generally, anyone who is paid to
706-GS(D), send us an explanation
to file Form 706-GS(D), you do not
prepare the return must sign the
and we will determine if you meet
have to include any distributions that
return in the space provided and fill in
reasonable cause criteria. Do not
have an inclusion ratio of zero.
the Paid Preparer Use Only area. See
attach an explanation when you file
section 7701(a)(36)(B) for exceptions.
Form 706-GS(D). Explanations
When To File
attached to the return at the time of
In addition to signing and
The generation-skipping transfer tax
filing will not be considered.
completing the required information,
on distributions is figured and
the paid preparer must give a copy of
Section 6662 provides a penalty for
reported on a calendar year basis,
the completed return to the
underpayment of GST taxes which
regardless of your income tax
distributee.
exceeds $5,000, if the underpayment
accounting period. Generally, you
is due to a valuation understatement.
must file Form 706-GS(D) on or after
Note. A paid preparer may sign
A substantial valuation under-
January 1 but not later than April 15 of
original or amended returns by rubber
statement occurs when the reported
the year following the calendar year
stamp, mechanical device, or
value of property listed on Form
when the distributions were made.
computer software program.
706-GS(D) is 65% or less of the actual
If you are not able to file the return
value of the property. A gross
by the due date, you may request an
valuation understatement occurs
automatic 6-month extension of time
when the reported value of property
to file by filing Form 7004, Application
listed on Form 706-GS(D) is 40% or
Oct 10, 2013
Cat. No. 10828G
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