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Instructions for Form

Department of the Treasury

Internal Revenue Service

706-NA

(Rev. August 2008)

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, 2007.)

Section references are to the Internal

deduction, a qualified conservation

see effective dates below for more

easement exclusion, or a credit for tax

information.

Revenue Code unless otherwise noted.

on prior transfers, or if you answer

After June 3, 2004. A citizen or

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

long-term resident, who lost U.S.

in Part III, General Information. You will

citizenship or residency after June 3,

need the instructions to Form 706 to

What’s New

2004, is subject to the alternative tax

explain how to value stocks and bonds.

regime of section 877 when the

Make sure that you use the version of

•

On page 1 of Form 706-NA, we have

individual:

Form 706 that corresponds to the date

revised the paid preparer signature

•

of the decedent’s death.

Has average annual net income tax

block. Paid preparers must sign the

in excess of $139,000 for 2008 for the 5

return and furnish the preparer

Definitions

taxable years preceding the loss of

information requested in the Paid

U.S. citizenship;

The following definitions apply in these

Preparer’s Use Only area.

•

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

instructions.

On January 1, 2008, the estate and

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

gift tax treaty between the United

United States. The United States

citizenship; or

States and Sweden was terminated and

means the 50 states and the District of

•

Fails to certify compliance with all

ceased to have effect. Therefore, we

Columbia.

federal tax obligations for the five

have deleted the country “Sweden”

Nonresident alien decedent.

preceding taxable years, unless he or

from the list of countries under Death

A nonresident alien decedent is a

she is a minor or a dual citizen without

Tax Treaties on page 2.

•

decedent who is neither domiciled in

substantial contact with the United

For the estates of nonresidents not

nor a citizen of the United States at the

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

citizens dying after December 31, 2007,

time of death. For purposes of this

(c)(3), for more information.

the treatment of stock in a regulated

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

investment company for purposes of

On or after February 6, 1995.

not a U.S. citizen.

determining the gross estate has been

Under prior law, citizens or certain

repealed. See section 2105(d) for

Long-term United States resident.

long-term residents (as defined in

details.

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

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

who is a lawful permanent resident of

citizenship or residency on or after

the U.S. in at least eight of the last 15

February 6, 1995, are presumed to

General Instructions

taxable years ending with the taxable

have the principal purpose of avoiding

year in which U.S. residency is

U.S. taxes, if the decedent’s average

terminated.

Purpose of Form

annual net income tax liability or net

worth exceeds certain limits. However,

Executor. An executor is the personal

Form 706-NA is used to compute estate

the executor has an opportunity to

representative, executor, executrix,

and generation-skipping transfer (GST)

prove otherwise. See sections

administrator, or administratrix of the

tax liability for nonresident alien

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

deceased person’s estate. If no

decedents. The estate tax is imposed

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

executor is appointed, qualified, and

on the transfer of the decedent’s

information.

acting in the United States, every

taxable estate rather than on the

person in actual or constructive

receipt of any part of it.

possession of any of the decedent’s

Who Must File

property must file a return. If more than

For information about transfer

one person must file, it is preferable

TIP

The executor must file Form 706-NA if

certificates for U.S. assets, write

that they join in filing one complete

to the following address.

the date of death value of the

return. Otherwise, each must file as

decedent’s gross estate located in the

complete a return as possible, including

Internal Revenue Service

United States under Internal Revenue

a full description of the property and

International Estate Tax Group

Code situs rules exceeds the filing limit.

each person’s name who holds an

S:SE:SP:EG:EC:1205

The filing limit is $60,000 reduced by

interest in it.

820 First Street NE, UCP-CNN-730

the sum of:

•

Washington, DC 20002

The gift tax specific exemption

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

(section 2521) allowed with respect to

Note. In order to complete this return,

expatriate is one who, within 10 years

gifts made between September 9,

you must obtain Form 706, United

before the date of death, lost U.S.

1976, and December 31, 1976,

States Estate (and Generation-Skipping

citizenship or (in certain cases) ended

inclusive, and

Transfer) Tax Return, and its separate

long-term U.S. residency with the

•

instructions. You must attach schedules

principal purpose of avoiding U.S.

The total taxable gifts made after

December 31, 1976, that are not

from Form 706 if you intend to claim a

taxes. See the instructions for Question

included in the gross estate.

marital deduction, a charitable

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

Cat. No. 63118N

Instructions For Form 706-Na - United States Estate (And Generation-Skipping Transfer) Tax Return - Internal Revenue Service - 2008

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