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Instructions for Form

Department of the Treasury

Internal Revenue Service

706-NA

(Rev. November 2007)

Use with Form 706-NA (Rev. October 2006)

United States Estate (and Generation-Skipping Transfer) Tax Return

Estate of nonresident not a citizen of the United States

(To be filed for decedents dying after December 31, 2006.)

“Yes” to question 5, 7, 8, 9a, 9b, or 11

see effective dates below for more

Section references are to the Internal

in Part III, General Information. You will

information.

Revenue Code unless otherwise noted.

need the instructions to Form 706 to

After June 3, 2004. A citizen or

explain how to value stocks and bonds.

What’s New

long-term resident, who lost U.S.

Make sure that you use the version of

citizenship or residency after June 3,

Form 706 that corresponds to the date

•

2004, is subject to the alternative tax

For 2007, the average annual net

of the decedent’s death.

regime of section 877 when the

income tax liability for the 5 taxable

Definitions

years ending before an individual

individual:

•

expatriated has increased to $136,000

Has average annual net income tax

The following definitions apply in these

($139,000 for 2008). See U.S.

in excess of $136,000 for 2007

instructions.

expatriate, After June 3, 2004 below for

($139,000 for 2008) for the 5 taxable

more information.

United States. The United States

years preceding the loss of U.S.

•

File Form 706-NA at the Internal

means the 50 states and the District of

citizenship;

•

Revenue Service Center listed under

Columbia.

Has a net worth of $2,000,000 or

Where To File on page 2.

more on the date of the loss of U.S.

•

Nonresident alien decedent.

The Small Business and Work

citizenship; or

A nonresident alien decedent is a

•

Opportunity Tax Act of 2007, P.L.

Fails to certify compliance with all

decedent who is neither domiciled in

110-28, extends the application of

federal tax obligations for the five

nor a citizen of the United States at the

income tax return preparer penalties to

preceding taxable years, unless he or

time of death. For purposes of this

all tax return preparers. See Penalties,

she is a minor or a dual citizen without

form, a citizen of a U.S. possession is

Return preparer on page 2 for more

substantial contact with the United

not a U.S. citizen.

information.

States. See sections 877(c)(2)(B) and

Long-term United States resident.

(c)(3), for more information.

General Instructions

A long-term U.S. resident is an alien

On or after February 6, 1995.

who is a lawful permanent resident of

Under prior law, citizens or certain

the U.S. in at least eight of the last

Purpose of Form

long-term residents (as defined in

fifteen taxable years ending with the

section 877(e)), who lost U.S.

taxable year in which U.S. residency is

Form 706-NA is used to compute estate

citizenship or residency on or after

terminated.

and generation-skipping transfer (GST)

February 6, 1995, are presumed to

tax liability for nonresident alien

Executor. An executor is the personal

have the principal purpose of avoiding

decedents. The estate tax is imposed

representative, executor, executrix,

U.S. taxes, if the decedent’s average

on the transfer of the decedent’s

administrator, or administratrix of the

annual net income tax liability or net

taxable estate rather than on the

deceased person’s estate. If no

worth exceeds certain limits. However,

receipt of any part of it.

executor is appointed, qualified, and

the executor has an opportunity to

acting in the United States, every

For information about transfer

prove otherwise. See sections

person in actual or constructive

TIP

certificates for U.S. assets, write

877(a)(1), (2), and (c), before its

possession of any of the decedent’s

to the following address:

amendment by P.L. 108-357, for more

property must file a return. If more than

information.

one person must file, it is preferable

Internal Revenue Service

that they join in filing one complete

International Estate Tax Group

Who Must File

return. Otherwise, each must file as

S:SE:SP:EG:EC:1205

complete a return as possible, including

820 First Street NE, UCP-CNN-730

The executor must file Form 706-NA if

a full description of the property and

Washington, DC 20002

the date of death value of the

each person’s name who holds an

decedent’s gross estate located in the

Note. In order to complete this return,

interest in it.

United States under Internal Revenue

you must obtain Form 706, United

Code situs rules exceeds the filing limit.

States Estate (and Generation-Skipping

U.S. expatriate. Generally, a U.S.

The filing limit is $60,000 reduced by

Transfer) Tax Return, and its separate

expatriate is one who, within ten years

the sum of:

instructions. You must attach schedules

before the date of death, lost U.S.

•

from Form 706 if you intend to claim a

citizenship or (in certain cases) ended

The gift tax specific exemption

marital deduction, a charitable

long-term U.S. residency with the

(section 2521) allowed with respect to

deduction, a qualified conservation

principal purpose of avoiding U.S.

gifts made between September 9,

1976, and December 31, 1976,

easement exclusion, or a credit for tax

taxes. See the instructions for Question

on prior transfers, or if you answer

6a and Question 6b on page 2. Also,

inclusive, and

Cat. No. 63118N

Instructions For Form 706-Na - United States Estate (And Generation-Skipping Transfer) Tax Return - 2007

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