Instructions For Form 706-D - United States Additional Estate Tax Return Under Code Section 2057 - 2000 Page 4
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4date such additional estate tax is due.
agreement by the transferee to be
Privacy Act and Paperwork Reduction
personally liable for any additional estate
Example. April Green died November
Act Notice. We ask for the information
tax under section 2057(f) on the QFOBI
1, 2000. On the Form 706 filed for her
on this form to carry out the Internal
received. For a format for such an
estate, the executor elected to take a
Revenue laws of the United States. We
agreement, see Form 706, Schedule T
$675,000 QFOBI deduction based on her
need it to figure and collect the right
(section 2057(h)).
ownership of 100% of the stock in XYZ
amount of tax. Subtitle B, Estate and Gift
Corp. The estate tax value of the stock
If you are not filing this Form 706-D on
Taxes, of the Internal Revenue Code,
was $900,000. June Green, April Green's
time, or if the transferee does not enter
imposes a tax in some cases on qualified
daughter and sole heir, received all of the
into the agreement, you must enter the
heirs when a section 2057(f) “taxable
XYZ stock from the estate, and managed
disposition(s) on Schedule A instead of
event” occurs with respect to a QFOBI.
the corporation. On June 30, 2002, June
Schedule C.
The Form 706-D is used to determine
Green sold part of the stock to a
Qualified conservation contribution.
the amount of the taxes owed. Section
nonqualified heir. The stock sold had an
Enter a disposition made through a
6011 requires you to provide the
estate tax value of $200,000.
qualified conservation contribution under
requested information if the tax is
The following amounts should be
section 170(h). In general, the term
applicable to you. Section 6109 also
entered on the Form 706-D filed by June
“qualified conservation contribution”
requires you to provide your taxpayer
Green to report the sale of stock:
means a contribution—
identification number (SSN). Routine uses
Line 1. $900,000 (the qualified heir's
1. of a qualified real property interest,
of the information on Form 706-D include
share of the total QFOBIs as shown on
2. to a qualified organization,
giving the information to the Department
line 4 of the Schedule T, Form 706).
3. exclusively for conservation
of Justice for civil and criminal litigation,
Line 2. $900,000 (the total reported
purposes.
as well as to cities, states, and the District
value of all the decedent's QFOBIs shown
of Columbia for use in administering their
Attach a copy of the Form 8283,
on line 6 of the decedent's Schedule T,
tax laws. If you fail to provide the required
Noncash Charitable Contributions, that
Form 706.
information in a timely manner, you may
was filed.
Line 3c. $355,000 (gross additional
be subject to penalties and interest.
As stated in the Instructions for Form
estate tax).
You are not required to provide the
8283, if your donation qualifies as a
Line 4. 100%
information requested on a form that is
“qualified conservation contribution” under
subject to the Paperwork Reduction Act
Line 5. $355,000 (quaIified heir's share
section 170(h), attach a statement
unless the form displays a valid OMB
of total reduction in estate tax).
showing the FMV of the underlying
control number. Books or records relating
property before and after the gift and the
Line 6. $200,000 from column (E),
to a form or its instructions must be
conservation purpose furthered by the
Schedule A of this Form 706-D (estate tax
retained as long as their contents may
gift. See Pub. 561, Determining the Value
value of the QFOBI disposed of).
become material in the administration of
of Donated Property.
Line 7. 22.2%
any Internal Revenue law. Generally, tax
Loss of U.S. citizenship. A qualified heir
Line 8. $78,810
returns and return information are
who loses U.S. citizenship (and, in some
Line 9. 100% as the applicable
confidential, as required by section 6103.
circumstances, a long-term resident who
percentage (the recapture event occurred
The time needed to complete and file
ceases to be treated as such) may avoid
within 4 years of the decedent's death).
this form will vary depending on individual
additional estate tax by placing the
Line 10. $78,810, total additional estate
circumstances. The estimated average
qualified family-owned business assets
tax.
time is:
into a trust meeting certain requirements,
Line 15. $78,810, additional estate tax
or by furnishing a bond in lieu of personal
Recordkeeping ........................
40 min.
due (there were no entries on lines 11
liability. See section 2057(g) for details.
Learning about the law or the
through 14).
Show in Schedule C if the qualified heir
form ..........................................
40 min.
Interest was not entered on the dotted
lost U.S. citizenship (or long-term
Preparing the form .................
56 min.
line of line 15. June Green, the qualified
residency), and such heir complied with
heir, chose to have the Service compute
the requirements of section 2057(g)).
Copying, assembling, and
the interest on the additional estate tax
sending the form to the IRS ..
35 min.
Attach a copy of the qualified trust
due.
agreement or evidence of the bond. See
If you have comments concerning the
section 2057(f)(1)(C) for more
accuracy of these time estimates or
Schedule C. Nontaxable
information.
suggestions for making this form simpler,
Transfers
we would be happy to hear from you. You
How To Complete Schedule C
can write to the Tax Forms Committee,
Disposition to family member. You
See the instructions for completing
Western Area Distribution Center, Rancho
may enter a disposition to a family
columns (A) and (B) of Schedule A,
Cordova, CA 95743-0001. Do not send
member of the qualified heir on Schedule
beginning on page 2. Report the
the tax form to this office. Instead, see
C only if you file this Form 706-D on time
applicable dates in column (C).
Where To File on page 1.
(including extensions) and attach an
Page 4
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