Wisconsin Estate Tax Return - Form W706 Instructions
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2Wisconsin Estate Tax Return – Form W706 Instructions
For Estates of Resident and Nonresident Decedents when
Date of Death is on or after October 1, 2002
GENERAL
ATTACHMENTS REQUIRED
A tax is imposed upon any transfer of property to any dis-
A complete copy of the Federal Estate Tax Return Form 706
tributee in either of the following cases: (1) when the transfer
and copies of ALL DOCUMENTS submitted with the
is from a person who dies while a resident of Wisconsin,
Form 706 must be filed with the Wisconsin Form W706.
and (2) when the transfer is of property within the jurisdic-
tion of Wisconsin and the decedent was not a resident of
WHERE TO FILE
Wisconsin at death. The Wisconsin estate tax is based on
Mail the completed Form W706 to the following address:
the Federal State Death Tax Credit as computed on Decem-
Wisconsin Department of Revenue
ber 31, 2000. This tax is imposed upon both resident and
PO Box 8904
nonresident decedents dying on or after October 1, 2002.
Madison WI 53708-8904
WHO MUST FILE
If a private carrier is used, the Form W706 and/or payment
must be received by the Department no later than the due
The Wisconsin Form W706 must be filed by the person who
is or would be responsible for filing the Federal Estate Tax
date of the return.
Return (i.e., personal representative, special administrator,
CERTIFICATE DETERMINING ESTATE TAX
trustee, distributee or other person who signs or would sign
the Federal Form 706). Form W706 must be filed for every
Upon receipt of the return and payment of the liability and
decedent whose gross estate, plus adjusted taxable gifts and
after audit, the Department of Revenue will issue a dated
specific exemption, is more than $675,000.
certificate showing the amount of tax, interest and penalty.
TIME TO FILE
CHANGES TO FEDERAL ESTATE TAX RETURN
The Form W706 is due 9 months after the date of death or
(FORM 706) OR FEDERAL ESTATE TAX
when the Federal Estate Tax Return (Form 706) is required
If the Federal Form 706 or the federal estate tax is amended
to be filed, as extended by the IRS or Form W4768, which-
or adjusted by any means, including a federal estate tax audit,
ever is later. However, regardless of when the return is filed,
a refund claim or a supplemental Federal Estate Tax Return,
the tax is due 9 months after date of death.
the Wisconsin Department of Revenue must be notified within
30 days.
Note A filing/payment sent via the U.S. Postal Service is
considered timely if it is postmarked by the due date and is
INSTALLMENT PAYMENTS
received by the department within five working days of the
Some estates may qualify to pay the Wisconsin estate tax in
due date. A filing/payment sent by any other means will be
installments. If a percentage of the federal tax on an estate
considered timely only if it is received by the department on
may be paid in installments under section 6166 of the Internal
or before the due date.
Revenue Code (IRC), the same percentage of Wisconsin
estate tax may be paid under the same installment schedule.
PAYMENT OF TAX AND REFUND
An election to pay in installments for federal estate tax
Payment of tax is due 9 months after date of death.
purposes does not constitute an election for Wisconsin
Federal extensions of time to pay do not apply to payment of
estate tax purposes. Written notice of the election to pay
the Wisconsin estate tax. Payment must be made to the Wis-
the Wisconsin estate tax in installments must be filed with
consin Department of Revenue. Full payment must
the Wisconsin Department of Revenue within nine months
accompany the Form W706. If a prepayment was made
after the decedent’s death. The provisions on acceleration
(Form 401T), any additional tax, interest and penalty must
of installment payments under section 6166(g) of the IRC
accompany the return. Pay the amount shown on Line 10 of
shall apply. Contact the Wisconsin Department of Revenue
this return. Any overpayment of the tax as finally determined
for further information at (608) 266-2772.
will be refunded to the payor. However, no interest will be
paid on the refund.
Interest is computed at the rate of 12 percent per annum
from date of death. Distributees of real estate must provide
INTEREST
the department a certified copy of a lien for unpaid taxes and
If the estate tax as finally determined is not paid within
interest on the property to secure payment, and shall record
9 months of the decedent’s death, interest is due. Interest is
the lien in the office of the register of deeds of the county in
calculated from the date of death to the date the tax is paid
which the property is located. Distributees of personal
at the rate of 12% per year. Interest is assessed regardless
property shall either provide a lien or provide the department
of any extension to file the return.
a financial guarantee bond equal to the estimated tax and
interest, if the tax has not been determined. Upon determi-
PENALTY
nation of the tax, distributees of personal property shall
Any person who fails to file a return by the due date is subject
provide a lien or a financial guarantee bond sufficient to
to a penalty of 5% of the Wisconsin estate tax as finally
secure payment of the tax and interest or pay the excess
determined (Line 5, Form W706) but not less than $25 nor
over the amount of tax and interest secured by the bond.
more than $500. The penalty is imposed even if there is no
tax due.
HT-007 (N. 11-02)
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