Instructions For Form 706-Gs(D) - (Rev. February 2011)
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2
3Instructions for
Department of the Treasury
Internal Revenue Service
Form 706-GS(D)
(Rev. February 2011)
Generation-Skipping Transfer Tax Return for 2010 Distributions
However, for distributions made in
valuation understatement occurs
Section references are to the Internal
Revenue Code unless otherwise noted.
2010, the due dates are modified as
when the reported value of property
follows: For distributions made
listed on Form 706-GS(D) is 65% or
What’s New
between January 1, 2010, and
less of the actual value of the
•
December 16, 2010, the due date for
property.
For generation-skipping transfers
Form 706-GS(D) will be September
made in 2010, the rate determined by
Interest will be charged on taxes
19, 2011. See Pub. L. 111–312,
section 2641 will be zero. See the
not paid by their due date, even if an
section 302(d)(2); IRC section 7503.
Tax Relief, Unemployment Insurance
extension of time to file is granted.
For 2010 distributions made
Reauthorization, and Job Creation
Interest is also charged on any
December 17, 2010, or later, the due
Act of 2010, Public Law 111–312,
additions to tax imposed by section
date for Form 706-GS(D) will be April
section 302(c).
6651 from the due date of the return
•
18, 2011, due to the Emancipation
For generation-skipping transfers
(including any extensions) until the
Day holiday in the District of
made after December 31, 2009, but
addition to tax is paid.
Columbia. See section 7503.
before December 17, 2010, the due
Return preparer. The Small
date of the return will be September
If you are not able to file the return
Business and Work Opportunity Tax
19, 2011 (not including extensions).
by the due date, you may request an
Act of 2007 (Act) extended the
•
In accordance with T.D. 9501, the
automatic 6-month extension of time
application of return preparer
paid preparer signature block has
to file by filing Form 7004, Application
penalties to all tax return preparers.
been revised. Paid preparers must
for Automatic Extension of Time To
Under section 6694, as amended by
sign the return and furnish the
File Certain Business Income Tax,
the Act, and the final regulations
information requested in the Paid
Information, and Other Returns. The
announced by T.D. 9436, 2009-3
Preparer Use Only area.
extension is automatic, so you do not
I.R.B. 268, tax return preparers, who
have to sign the form or provide a
prepare any return or claim for refund
reason for your request. You must file
which reflects an understatement of
General Instructions
Form 7004 on or before the regular
tax liability due to willful or reckless
due date of Form 706-GS(D). See
conduct, are subject to a penalty of
Form 7004 for more information.
$5,000 or 50% of the income derived
Purpose of Form
(or income to be derived), whichever
Where To File
Form 706-GS(D) is used by a skip
is greater, for the preparation of each
person distributee to calculate and
such return.
File Form 706-GS(D) at the following
report the tax due on distributions
address:
from a trust that are subject to the
Signature
Department of the Treasury
generation-skipping transfer (GST)
Either the distributee or an authorized
Internal Revenue Service
tax.
representative must sign Form
Cincinnati, OH 45999
Who Must File
706-GS(D).
Penalties and Interest
If you fill in your own return, leave
In general, anyone who receives a
the Paid Preparer Use Only space
taxable distribution from a trust must
Section 6651 provides penalties for
blank. If someone prepares your
file Form 706-GS(D). Trustees are
both late filing and late payment
return and does not charge you, that
required to report taxable distributions
unless there is reasonable cause for
person should not sign the return.
to skip person distributees on Form
the delay. The law also provides
706-GS(D-1), Notification of
penalties for willful attempts to evade
Generally, anyone who is paid to
Distribution From a Generation-
payment of tax.
prepare the return must sign the
Skipping Trust.
return in the space provided and fill in
A return is late when it is filed after
the Paid Preparer Use Only area.
the due date, including extensions.
See section 7701(a)(36)(B) for
When To File
The late filing penalty will not be
exceptions.
imposed if the taxpayer can show that
The generation-skipping transfer tax
In addition to signing and
the failure to file a timely return is due
on distributions is figured and
to reasonable cause. Taxpayers filing
completing the required information,
reported on a calendar year basis,
late should attach an explanation to
the paid preparer must give a copy of
regardless of your income tax
the completed return to the
the return to show reasonable cause.
accounting period. You, generally,
distributee.
must file Form 706-GS(D) on or after
Section 6662 provides a penalty
Note. A paid preparer may sign
January 1 but not later than April 15
for underpayment of GST taxes which
original or amended returns by rubber
of the year following the calendar
exceeds $5,000 if the underpayment
stamp, mechanical device, or
year when the distributions were
is attributable to valuation
computer software program.
made.
understatements. A substantial
Cat. No. 10828G
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