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

On or after February 6, 1995, but

attach an explanation when you file

available U.S. gift tax returns the

before June 3, 2004. Under prior law,

Form 706-NA. Explanations attached to

decedent filed. Other documents may

citizens or certain long-term residents

the return at the time of filing will not be

be required as explained in these

(as defined in section 877(e)) who lost

considered.

instructions.

U.S. citizenship or residency on or after

Return preparer. The Small Business

Attach an English translation to all

February 6, 1995, but before June 3,

and Work Opportunity Tax Act of 2007

documents in other languages.

2004, are presumed to have the

(Act) extended the application of return

How To Complete Form

principal purpose of avoiding U.S. taxes

preparer penalties to preparers of

if the decedent’s average annual net

estate tax returns. Under section 6694,

706-NA

income tax liability or net worth exceeds

as amended by the Act, estate tax

certain limits. However, the executor

return preparers who prepare any

First, enter the decedent’s name and

has an opportunity to prove otherwise.

return or claim for refund that reflects

the other information called for in Part I.

See sections 877(a)(1), (a)(2), and (c),

an understatement of tax liability due to

For item 2, enter the decedent’s social

before its amendment by P.L. 108-357,

willful or reckless conduct are subject to

security number (SSN) or individual

for more information.

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

taxpayer identification number (ITIN),

income derived (or income to be

whichever is applicable. Then answer

Who Must File

derived), whichever is greater, for the

all of the questions in Part III.

preparation of each such return. See

The executor must file Form 706-NA if

The estate tax is imposed on the

section 6694, T.D. 9436 (2009-3 I.R.B.

the date of death value of the gross

decedent’s gross estate in the United

268, available at

estate located in the United States

States, reduced by allowable

irs-irbs/irb09-03.pdf), and Ann.

exceeds the filing limit of $60,000. The

deductions. Compute the gross estate

2009-15, 2009-11 I.R.B. 687 (available

total value of the gross estate may be

in the United States on Schedule A.

irs-irbs/

reduced by the sum of:

Reduce the Schedule A total by the

•

irb09-11.pdf) for more information.

The gift tax specific exemption

allowable deductions to derive the

(section 2521) allowed for gifts made

taxable estate on Schedule B, and

Death Tax Treaties

between September 9, 1976, and

figure the tax due using Part II – Tax

December 31, 1976, inclusive, and

Computation.

Death tax treaties are in effect with the

•

The amount of adjusted taxable gifts

following countries.

Part III. General Information

made after December 31, 1976.

Australia

Ireland

Question 6a. If you answer “Yes,”

When To File

Austria

Italy

please attach a statement listing:

•

Canada*

Japan

The citizenship of the decedent’s

File Form 706-NA within 9 months after

Denmark

Netherlands

parents,

the date of death unless an extension

•

Finland

Norway

Whether the decedent became a

of time to file was granted.

France

South Africa

U.S. citizen through a naturalization

If you are unable to file Form 706-NA

Germany

Switzerland

proceeding in the United States, and

by the due date, use Form 4768,

Greece

United Kingdom

•

When the decedent lost U.S.

Application for Extension of Time To

citizenship or residency.

*Article XXIX B of the United States — Canada

File a Return and/or Pay U.S. Estate

Income Tax Treaty

Question 6b. If you answered “Yes,”

(and Generation-Skipping Transfer)

and the decedent lost his or her U.S.

Taxes, to apply for an automatic

If you are reporting any items on this

citizenship or long-term residence

6-month extension of time to file. Check

return based on the provisions of a

within 10 years of death and prior to

the “Form 706-NA” box in Part II of

death tax treaty or protocol, attach a

June 17, 2008, but maintain that

Form 4768.

statement to this return indicating that

avoiding U.S. taxes was not a principal

the return position is treaty-based. See

purpose for the decedent’s loss of

Where To File

Regulations section 301.6114-1 for

citizenship or residency, attach

details.

File Form 706-NA at the following

documents to sustain your position.

address.

See Definitions, above.

Question 9. A general power of

Department of the Treasury

Specific Instructions

appointment is any power of

Internal Revenue Service Center

appointment exercisable in favor of the

Cincinnati, OH 45999

Attachments

decedent, the decedent’s estate, the

Penalties

decedent’s creditors, or the creditors of

If the decedent died testate, attach a

the decedent’s estate, and includes the

The law provides for penalties for both

certified copy of the will to Form

right of a beneficiary to appropriate or

late filing of returns and late payment of

706-NA. If you are unable to obtain a

consume the principal of a trust. For a

tax unless there is reasonable cause

certified copy, attach a copy of the will

complete definition, see section

for the delay. There are also penalties

and explain why it could not be

2041(b).

for willful attempts to evade or defeat

certified.

Schedule A

payment of tax.

You must also attach a copy of the

decedent’s death certificate.

The law also provides for penalties

Before you complete Schedule A, you

for valuation understatements that

must determine what assets are

For closely held or inactive corporate

cause an underpayment of tax. See

included in the decedent’s entire gross

stock, attach the balance sheets,

sections 6662(g) and (h) for more

estate, wherever located. However, list

particularly the one nearest the

details.

on Schedule A only those assets

valuation date, and statements of the

located in the United States. Enter the

Reasonable cause determinations.

net earnings or operating results and

total value of assets located outside the

If you receive a notice about penalties

dividends paid for each of the 5

United States on line 2 of Schedule B.

after you file Form 706-NA, send an

preceding years. Attach any other

Entire gross estate. The entire gross

explanation and we will determine if you

documents, such as appraisals, needed

meet reasonable cause criteria. Do not

for explanation. Also attach copies of all

estate is figured the same way for a

-2-

Instructions Draft For Form 706-Na - United States Estate (And Generation-Skipping Transfer) Tax Return Estate Of Nonresident Not A Citizen Of The United States Page 3

Related Articles

Related forms

Related Categories