Looking for a Form 706 Templates? Download it for free!

death tax treaty or protocol, you may

decedent’s loss of citizenship or

When To File

have to attach a statement to this return

residency, attach documents to sustain

File Form 706-NA within 9 months after

disclosing the return position that is

your position. See Definitions on

the date of death unless an extension

treaty based. See Regulations section

page 1.

of time to file was granted.

301.6114-1 for details.

Question 9. A general power of

Use Form 4768, Application for

appointment is any power of

Extension of Time To File a Return

appointment exercisable in favor of the

Specific Instructions

and/or Pay U.S. Estate (and

decedent, the decedent’s estate, the

Generation-Skipping Transfer) Taxes,

decedent’s creditors, or the creditors of

to apply for an automatic 6-month

the decedent’s estate, and includes the

Attachments

extension of time to file. Check the

right of a beneficiary to appropriate or

“Form 706-NA” box in Part II of Form

If the decedent died testate, attach a

consume the principal of a trust. For a

4768.

certified copy of the will to Form

complete definition, see section 2041.

706-NA. If you are unable to obtain a

Where To File

Schedule A

certified copy, attach a copy of the will

and explain why it could not be

Before you complete Schedule A, you

File Form 706-NA at the following

certified.

must determine what assets are

address.

included in the decedent’s entire gross

You must also attach a copy of the

Department of the Treasury

estate, wherever located. However, list

decedent’s death certificate.

Internal Revenue Service Center

on Schedule A only those assets

For closely held or inactive corporate

Cincinnati, OH 45999

included in the entire gross estate that

stock, attach the balance sheets,

are located in the United States. Enter

particularly the one nearest the

Penalties

the total value of assets located outside

valuation date, and statements of the

the United States on line 2 of

The law provides for penalties for both

net earnings or operating results and

Schedule B.

late filing of returns and late payment of

dividends paid for each of the 5

tax unless there is reasonable cause

Entire gross estate. The entire gross

preceding years. Attach any other

for the delay. There are also penalties

estate is figured the same way for a

documents, such as appraisal lists,

for willful attempts to evade or defeat

nonresident alien decedent as for a

needed for explanation. Also attach

payment of tax.

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

copies of all available U.S. gift tax

property the decedent beneficially

The law also provides for penalties

returns the decedent filed. Other

owned, wherever located, and includes

for valuation understatements that

documents may be required as

the following property interests:

cause an underpayment of tax. See

explained in these instructions.

•

Generally, the full value of property

sections 6662(g) and (h) for more

Attach an English translation to all

the decedent owned at the time of

details.

documents in other languages.

death as a joint tenant with right of

Return preparer. The Small Business

survivorship (but if the surviving spouse

How To Complete Form

and Work Opportunity Tax Act of 2007

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

(Act) extends the application of return

706-NA

value of property held by the decedent

preparer penalties to preparers of

and surviving spouse either as joint

estate tax returns. Under section 6694,

First, enter the decedent’s name and

tenants with right of survivorship or as

as amended by the Act, and the

the other information called for in Part I.

tenants by the entirety). For exceptions,

transitional relief provided by Notice

For item 2, enter the decedent’s social

see the instructions on the reverse side

2008-13, 2008-3 I.R.B. 282, estate tax

security number (SSN) or individual

of Schedule E, Form 706;

return preparers, who prepare any

taxpayer identification number (ITIN),

•

Property the decedent and a

return or claim for refund which reflects

whichever is applicable. Then answer

surviving spouse owned as community

an understatement of tax liability due to

all of the questions in Part III.

property to the extent of the decedent’s

willful or reckless conduct, are subject

The estate tax is imposed on the

interest in the property under applicable

to a penalty of $5,000 or 50% of the

decedent’s gross estate in the United

state, possession, or foreign law;

income derived (or income to be

•

States, reduced by allowable

A surviving spouse’s dower or

derived), whichever is greater, for the

deductions. Compute the gross estate

curtesy interest and all substitute

preparation of each such return. See

in the United States on Schedule A.

interests created by statute;

section 6694 and Notice 2008-13 for

•

Reduce the Schedule A total by the

Proceeds of insurance on the

more details.

allowable deductions to derive the

decedent’s life, generally including

taxable estate on Schedule B, and

proceeds receivable by beneficiaries

Death Tax Treaties

figure the tax due using the Tax

other than the estate;

•

Death tax treaties are in effect with the

Computation schedule (Part II).

Several kinds of transfers the

following countries.

decedent made before death;

Part III. General Information

•

Property in which the decedent either

Australia

Ireland

held a general power of appointment at

Question 6a. If you answer “Yes,”

Austria

Italy

the time of death, or used or released

please attach a statement listing:

Canada*

Japan

•

this power in certain ways before

The citizenship of the decedent’s

Denmark

Netherlands

death; and

parents,

Finland

Norway

•

Certain annuities to surviving

Whether the decedent became a

France

South Africa

beneficiaries.

U.S. citizen through a naturalization

Germany

Switzerland

proceeding in the United States, and

For additional information

Greece

United Kingdom

•

When the decedent lost U.S.

concerning joint tenancies, tenancies

*Article XXIX B of the United States — Canada

citizenship or residency.

by the entirety, annuities, life insurance,

Income Tax Treaty

Question 6b. If you answer “Yes,” but

transfers during life, and powers of

If you are reporting any items on this

maintain that avoiding U.S. taxes was

appointment, see the Instructions for

return based on the provisions of a

not a principal purpose for the

Form 706.

-2-

Instructions For Form 706-Na - United States Estate (And Generation-Skipping Transfer) Tax Return - Internal Revenue Service - 2008 Page 2

Related Articles

Related forms

Related Categories