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The total taxable gifts made after

treaty based. See Regulations section

your position. See Definitions on

December 31, 1976, that are not

301.6114-1 for details.

page 1.

included in the gross estate.

Question 9. A general power of

appointment is any power of

When To File

Specific Instructions

appointment exercisable in favor of the

decedent, the decedent’s estate, the

File Form 706-NA within 9 months after

decedent’s creditors, or the creditors of

the date of death unless an extension

Attachments

the decedent’s estate, and includes the

of time to file was granted.

right of a beneficiary to appropriate or

If the decedent died testate, attach a

consume the principal of a trust. For a

certified copy of the will to Form

Where To File

complete definition, see section 2041.

706-NA. If you are unable to obtain a

Form 706-NA must be filed at:

certified copy, attach a copy of the will

Schedule A

and explain why it could not be

Department of the Treasury

Before you complete Schedule A, you

certified.

Internal Revenue Service Center

must determine what assets are

Cincinnati, OH 45999

You must also attach a copy of the

included in the decedent’s entire gross

decedent’s death certificate.

estate, wherever located. However, list

Penalties

on Schedule A only those assets

For closely held or inactive corporate

The law provides for penalties for both

included in the entire gross estate that

stock, attach the balance sheets,

late filing of returns and late payment of

are located in the United States. Enter

particularly the one nearest the

tax unless there is reasonable cause

the total value of assets located outside

valuation date, and statements of the

for the delay. There are also penalties

the United States on line 2 of

net earnings or operating results and

for willful attempts to evade or defeat

Schedule B.

dividends paid for each of the 5

payment of tax.

preceding years. Attach any other

Entire gross estate. The entire gross

documents, such as appraisal lists,

The law also provides for penalties

estate is figured the same way for a

needed for explanation. Also attach

for valuation understatements that

nonresident alien decedent as for a

copies of all available U.S. gift tax

cause an underpayment of tax. See

U.S. citizen or resident. It consists of all

returns the decedent filed. Other

property the decedent beneficially

sections 6662(g) and (h) for more

documents may be required as

details.

owned, wherever located, and includes

explained in these instructions.

the following property interests.

Return preparer. The Small Business

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Generally, the full value of property

Attach an English translation to all

and Work Opportunity Tax Act of 2007

the decedent owned at the time of

documents in other languages.

(Act) amended section 6694 to extend

death as a joint tenant with right of

the application of income tax return

survivorship (but if the surviving spouse

How To Complete Form

preparer penalties to all tax return

is a U.S. citizen, then only half the

preparers, including estate tax return

706-NA

value of property held by the decedent

preparers. Under the amended

and surviving spouse either as joint

provision and transitional relief provided

First, enter the decedent’s name and

tenants with right of survivorship or as

by Notice 2007-54, 2007-24 I.R.B. 12,

the other information called for in Part I.

tenants by the entirety). For exceptions,

estate tax return preparers, who

For item 2, enter the decedent’s social

see the instructions on the reverse side

prepare any return or claim for refund

security number (SSN) or individual

of Schedule E, Form 706;

which reflects an understatement of tax

taxpayer identification number (ITIN),

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Property the decedent and a

liability due to willful or reckless

whichever is applicable. Then answer

surviving spouse owned as community

conduct, are subject to a penalty of

all of the questions in Part III.

property to the extent of the decedent’s

$5,000 or 50% of the income from (or

The estate tax is imposed on the

interest in the property under applicable

income to be derived from), whichever

decedent’s gross estate in the United

state, possession, or foreign law;

is greater, for the preparation of each

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States, reduced by allowable

A surviving spouse’s dower or

such return. See section 6694 and

deductions. Compute the gross estate

curtesy interest and all substitute

Notice 2007-54 for more details.

in the United States on Schedule A.

interests created by statute;

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Reduce the Schedule A total by the

Proceeds of insurance on the

Death Tax Treaties

allowable deductions to derive the

decedent’s life, generally including

taxable estate on Schedule B, and

Death tax treaties are in effect with the

proceeds receivable by beneficiaries

figure the tax due using the Tax

following countries:

other than the estate;

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Computation schedule (Part II).

Several kinds of transfers the

Australia

Italy

decedent made before death;

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Part III. General Information

Austria

Japan

Property in which the decedent either

Canada*

Netherlands

held a general power of appointment at

Question 6a. If you answer “Yes,”

Denmark

Norway

the time of death, or used or released

please attach a statement listing:

Finland

South Africa

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this power in certain ways before

The citizenship of the decedent’s

France

Sweden

death; and

parents,

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Germany

Switzerland

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Certain annuities to surviving

Whether the decedent became a

Greece

United Kingdom

beneficiaries.

U.S. citizen through a naturalization

Ireland

proceeding in the United States, and

For additional information

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*Article XXIX B of the United States — Canada

When the decedent lost U.S.

concerning joint tenancies, tenancies

Income Tax Treaty

citizenship or residency.

by the entirety, annuities, life insurance,

transfers during life, and powers of

If you are reporting any items on this

Question 6b. If you answer “Yes,” but

appointment, see the Instructions for

return based on the provisions of a

maintain that avoiding U.S. taxes was

Form 706.

death tax treaty or protocol, you may

not a principal purpose for the

have to attach a statement to this return

decedent’s loss of citizenship or

Enter on Schedule A all of the assets

disclosing the return position that is

residency, attach documents to sustain

that meet both the following tests.

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Instructions For Form 706-Na - United States Estate (And Generation-Skipping Transfer) Tax Return - 2007 Page 2

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