Instructions For Form 706-Gs(D)
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1
2
3Instructions for
Department of the Treasury
Internal Revenue Service
Form 706-GS(D)
(Rev. March 2007)
For use with Form 706-GS(D) (Rev. February 2006)
Generation-Skipping Transfer Tax Return for Distributions
Section references are to the Internal
inclusion ratio found in Part II, line 3,
exceed $5,000 that is attributable to
Revenue Code unless otherwise noted.
column d, of Form 706-GS(D-1) is
valuation understatements. A
zero for all distributions reported to
substantial valuation understatement
What’s New
you. If you are required to file Form
occurs when the reported value of
•
The Pension Protection Act of 2006
706-GS(D), you do not have to
property listed on Form 706-GS(D) is
(PPA) has amended the provisions
include any distributions that have an
65% or less of the actual value of the
used to determine substantial
inclusion ratio of zero.
property.
misstatements of valuation of
Interest will be charged on taxes
When To File
property. The PPA applies to returns
not paid by their due date, even if an
filed after August 17, 2006. See
The generation-skipping transfer tax
extension of time to file is granted.
Penalties and Interest below and
on distributions is figured and
Interest is also charged on any
section 6662(g) for more details.
reported on a calendar year basis,
additions to tax imposed by section
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File Form 706-GS(D) at the Internal
regardless of your income tax
6651 from the due date of the return
Revenue Service Center listed under
accounting period. You must file
(including any extensions) until the
Where To File below.
Form 706-GS(D) on or after January
addition to tax is paid.
•
You can request an automatic
1 but not later than April 15 of the
6-month extension of time to file Form
Signature
year following the calendar year when
706-GS(D) by filing Form 7004,
the distributions were made.
Either the distributee or an authorized
Application for Automatic 6-Month
If you are not able to file the return
representative must sign Form
Extension of Time To File Certain
by the due date, you may request an
706-GS(D).
Business Income Tax, Information,
automatic 6-month extension of time
and Other Returns. For additional
If you fill in your own return, leave
to file by filing Form 7004. The
information, see Form 7004.
the Paid Preparer’s space blank. If
•
extension is automatic, so you do not
The 5% credit for certain state
someone prepares your return and
have to sign the form or provide a
generation-skipping transfer (GST)
does not charge you, that person
reason for your request. You must file
taxes no longer applies to GST
should not sign the return. Generally,
Form 7004 on or before the regular
transfers made after December 31,
anyone who is paid to prepare your
due date of Form 706-GS(D). See
2004. See section 2604 for more
return must sign it and fill in the other
Form 7004 for more information.
information.
blanks in the Paid Preparer’s Use
Only area of the return.
Where To File
General Instructions
File Form 706-GS(D) at the following
address:
Specific Instructions
Purpose of Form
Internal Revenue Service Center
Cincinnati, OH 45999
Form 706-GS(D) is used by a skip
Part I
person distributee to calculate and
Penalties and Interest
report the tax due on distributions
Line 1a
from a trust that are subject to the
Section 6651 provides penalties for
If the skip person distributee is a
generation-skipping transfer (GST)
both late filing and late payment
trust, enter the name of the trust here.
tax.
unless there is reasonable cause for
the delay. The law also provides
Line 1b
Who Must File
penalties for willful attempts to evade
For skip person distributees who are
payment of tax.
In general, anyone who receives a
individuals, enter the distributee’s
taxable distribution from a trust must
The late filing penalty will not be
social security number (SSN) here
file Form 706-GS(D). Trustees are
imposed if the taxpayer can show that
and leave line 1c blank. If the skip
required to report taxable distributions
the failure to file a timely return is due
person distributee is a trust, see the
to skip person distributees on Form
to reasonable cause. Taxpayers filing
instructions for line 1c. Do not enter a
706-GS(D-1), Notification of
late (after the due date, including
number on both line 1b and line 1c.
Distribution From a Generation-
extensions) should attach an
Skipping Trust.
Line 1c
explanation to the return to show
reasonable cause.
Even if you receive a Form
If the skip person distributee is a
706-GS(D-1), however, you do not
Section 6662 provides a penalty
trust, enter the trust’s employer
need to file Form 706-GS(D) if the
for underpayment of GST taxes which
identification number (EIN) and leave
Cat. No. 10828G
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