Instructions For Form 706-Gs(D) (Rev. February 2006)
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1
2
3Instructions for
Department of the Treasury
Internal Revenue Service
Form 706-GS(D)
(Rev. February 2006)
Generation-Skipping Transfer Tax Return for Distributions
Section references are to the Internal Revenue Code unless otherwise noted.
include any distributions that have an
listed on Form 706-GS(D) is 50% or
What’s New
inclusion ratio of zero.
less of the actual value of the
•
You can request an automatic
property.
6-month extension of time to file Form
When To File
Interest will be charged on taxes
706-GS(D) by filing Form 7004,
The generation-skipping transfer tax
not paid by their due date, even if an
Application for Automatic 6-Month
extension of time to file is granted.
on distributions is figured and
Extension of Time To File Certain
Interest is also charged on any
reported on a calendar year basis,
Business Income Tax, Information,
regardless of your income tax
additions to tax imposed by section
and Other Returns (Rev. December
6651 from the due date of the return
accounting period. You must file
2005). Form 7004 replaces the use of
(including any extensions) until the
Form 706-GS(D) on or after January
Form 2758, Application for Extension
1 but not later than April 15 of the
addition to tax is paid.
of Time To File Certain Excise,
year following the calendar year when
Income, Information, and Other
Signature
the distributions were made.
Returns. For additional information,
Either the distributee or an authorized
If you are not able to file the return
see Form 7004.
•
representative must sign Form
by the due date, you may request an
The 5% credit for certain state
706-GS(D).
automatic 6-month extension of time
generation-skipping transfer (GST)
to file by filing Form 7004. The
taxes no longer applies to GST
If you fill in your own return, leave
extension is automatic, so you do not
transfers made after December 31,
the Paid Preparer’s space blank. If
have to sign the form or provide a
2004. See section 2604 for more
someone prepares your return and
reason for your request. You must file
information.
does not charge you, that person
Form 7004 on or before the regular
should not sign the return. Generally,
due date of Form 706-GS(D). See
anyone who is paid to prepare your
Form 7004 for more information.
return must sign it and fill in the other
General Instructions
blanks in the Paid Preparer’s Use
Where To File
Only area of the return.
Purpose of Form
File Form 706-GS(D) at the Internal
Revenue Service Center specified on
Form 706-GS(D) is used by a skip
your copy of Form 706-GS(D-1).
Specific Instructions
person distributee to calculate and
report the tax due on distributions
Penalties and Interest
from a trust that are subject to the
Part I
generation-skipping transfer (GST)
Section 6651 provides penalties for
tax.
both late filing and late payment
Line 1a
unless there is reasonable cause for
Who Must File
If the skip person distributee is a
the delay. The law also provides
trust, enter the name of the trust here.
penalties for willful attempts to evade
In general, anyone who receives a
payment of tax.
taxable distribution from a trust must
Line 1b
file Form 706-GS(D). Trustees are
The late filing penalty will not be
For skip person distributees who are
required to report taxable distributions
imposed if the taxpayer can show that
individuals, enter the distributee’s
to skip person distributees on Form
the failure to file a timely return is due
social security number (SSN) here
706-GS(D-1), Notification of
to reasonable cause. Taxpayers filing
and leave line 1c blank. If the skip
Distribution From a Generation-
late (after the due date, including
person distributee is a trust, see the
Skipping Trust.
extensions) should attach an
instructions for line 1c. Do not enter a
explanation to the return to show
Even if you receive a Form
number on both line 1b and line 1c.
reasonable cause.
706-GS(D-1), however, you do not
Line 1c
need to file Form 706-GS(D) if the
Section 6662 provides a penalty
inclusion ratio found in Part II, line 3,
for underpayment of GST taxes of
If the skip person distributee is a
column d, of Form 706-GS(D-1) is
$5,000 or more that is attributable to
trust, enter the trust’s employer
zero for all distributions reported to
valuation understatements. A
identification number (EIN) and leave
you. If you are required to file Form
valuation understatement occurs
line 1b blank. Do not enter a number
706-GS(D), you do not have to
when the reported value of property
on both line 1b and line 1c.
Cat. No. 10828G
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