Instructions For Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return Page 16
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55figured above, the 2% portion is the
qualifies for payment of the estate tax in
died after December 31, 2010,
lesser amount.
installments.
complete Part 6 — Portability of
Deceased Spousal Unused Exclusion,
You also may elect to pay certain
Inflation adjustment. The
Section D if the estate of the
GST taxes in installments. See section
$1,000,000 amount used to calculate
predeceased spouse elected to allow
6166(i).
the 2% portion is indexed for inflation for
the decedent to use any unused
the estates of decedents who died in a
Line 4. Reversionary or
exclusion amount. For more
calendar year after 1998. For an estate
Remainder Interests
information, see section 2010(c)(4) and
of a decedent who died in 2017, the
related regulations.
For details of this election, see section
dollar amount used to determine the
6163 and the related regulations.
Line 4
“2% portion” of the estate tax payable in
installments under section 6166 is
Complete line 4 whether or not there is a
$1,490,000.
Part 4—General
surviving spouse and whether or not the
surviving spouse received any benefits
Information
Computation. Interest on the
from the estate. If there was no surviving
portion of the tax in excess of the 2%
Authorization
spouse on the date of decedent's death,
portion is figured at 45% of the annual
enter “None” in line 4a and leave lines
rate of interest on underpayments. This
Completing the authorization will
4b and 4c blank. The value entered in
rate is based on the federal short-term
authorize one attorney, accountant, or
line 4c need not be exact. See the
rate and is announced quarterly by the
enrolled agent to represent the estate
instructions for “Amount” under line 5,
IRS in the Internal Revenue Bulletin.
and receive confidential tax information,
below.
but will not authorize the representative
If you elect installment payments and
to enter into closing agreements for the
the estate tax due is more than the
Note. Do not include any DSUE
estate. If you would like to authorize
maximum amount to which the 2%
amount transferred to the surviving
your representative to enter into
interest rate applies, each installment
spouse in the total entered on line 4c.
agreements or perform other
payment is deemed to comprise both
Line 5
designated acts on behalf of the estate,
tax subject to the 2% interest rate and
you must file Form 2848 with Form 706.
tax subject to 45% of the regular
Name. Enter the name of each
underpayment rate. The amount of each
individual, trust, or estate that received
Note. If you intend for the
installment that is subject to the 2% rate
(or will receive) benefits of $5,000 or
representative to represent the estate
is the same as the percentage of total
more from the estate directly as an heir,
before the IRS, he or she must complete
tax payable in installments that is
next-of-kin, devisee, or legatee; or
and sign this authorization.
subject to the 2% rate.
indirectly (for example, as beneficiary of
Complete and attach Form 2848 if
an annuity or insurance policy,
The interest paid on installment
you would like to authorize:
shareholder of a corporation, or partner
payments is not deductible as
!
Persons other than attorneys,
of a partnership that is an heir, etc.).
an administrative expense of
CAUTION
accountants, or enrolled agents to
the estate.
Identifying number. Enter the SSN of
represent the estate; or
each individual beneficiary listed. If the
More than one person to receive
Making the election. If you check this
number is unknown, or the individual
confidential information or represent the
line to make a final election, you must
has no number, please indicate
estate; or
attach the notice of election described in
“unknown” or “none.” For trusts and
Someone to sign agreements,
Regulations section 20.6166-1(b). If you
other estates, enter the Employer
consents, waivers or other documents
check this line to make a protective
Identification Number (EIN).
for the estate.
election, you must attach a notice of
Filing a completed Form 2848 with this
Relationship. For each individual
protective election as described in
return may expedite processing of the
beneficiary, enter the relationship (if
Regulations section 20.6166-1(d).
Form 706.
known) to the decedent by reason of
Regulations section 20.6166-1(b)
requires that the notice of election is
blood, marriage, or adoption. For trust
If you wish only to authorize
made by attaching to a timely filed
or estate beneficiaries, indicate
someone to inspect and/or receive
estate tax return the following
“TRUST” or “ESTATE.”
confidential tax information (but not to
information.
represent you before the IRS), complete
Amount. Enter the amount actually
The decedent's name and taxpayer
and file Form 8821.
distributed (or to be distributed) to each
identification number as they appear on
beneficiary including transfers during
Line 3
the estate tax return.
the decedent's life from Schedule G
The amount of tax that is to be paid in
Enter the marital status of the decedent
required to be included in the gross
installments.
at the time of death by checking the
estate. The value to be entered need
The date selected for payment of the
appropriate box on line 3a. If the
not be exact. A reasonable estimate is
first installment.
decedent was married at the time of
sufficient. For example, where precise
The number of annual installments,
death, complete line 4. If the decedent
values cannot readily be determined, as
including first installment, in which the
had one or more prior marriages,
with certain future interests, a
tax is to be paid.
complete line 3b by providing the name
reasonable approximation should be
The properties shown on the estate
and SSN of each former spouse, the
entered. The total of these distributions
tax return that are the closely held
date(s) the marriage ended, and specify
should approximate the amount of gross
business interest (identified by schedule
whether the marriage ended by
estate reduced by funeral and
and item number).
annulment, divorce decree, or death of
administrative expenses, debts and
The facts that formed the basis for the
spouse. If the prior marriage ended in
mortgages, bequests to surviving
executor's conclusion that the estate
death and the predeceased spouse
-16-
Part Instructions
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