Instructions For Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return Page 2
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55whose generation assignment is
Filing a timely and complete Form
Asked Questions on Estate Tax
at
changed as a result of Notice 2017-15,
706 with a DSUE amount will be
IRS.gov.
any GST exemption amount allocated to
considered an election to transfer the
General Instructions
the gift will be deemed void. For more
DSUE amount to the surviving spouse.
details, see the instructions to
An executor of an estate who files a
Schedules R and R-1—Generation –
Form 706 that does not elect to transfer
Purpose of Form
Skipping Transfer Tax.
the DSUE amount to the surviving
The executor of a decedent's estate
spouse must affirmatively opt out of
For more information about the
uses Form 706 to figure the estate tax
portability. See Part 6—Portability of
Restored Exclusion Amount and GST
imposed by Chapter 11 of the Internal
Deceased Spousal Unused Exclusion,
transfers, see
Notice 2017-15, 2017-06
Revenue Code. This tax is levied on the
Section A.
I.R.B. 783.
entire taxable estate and not just on the
Extension for executors filing to
Consistent basis reporting. On
share received by a particular
elect portability. Executors who did
July 31, 2015, the Surface
beneficiary. Form 706 also is used to
not have a filing requirement under
Transportation and Veterans Health
figure the generation-skipping transfer
section 6018(a), but failed to timely file
Care Choice Improvement Act of 2015
(GST) tax imposed by Chapter 13 on
Form 706 to make the portability
(Public Law 114-41) was enacted.
direct skips (transfers to skip persons of
election, may be eligible for an
Section 2004 of the Act requires that
interests in property included in the
extension under Rev. Proc. 2017–34,
certain estates report, both to the IRS
decedent's gross estate).
2017–26 I.R.B. 1282. Executors filing to
and the recipient, the estate tax value of
Which Estates Must File
elect portability, may now file Form 706
each asset included in the gross estate
on or before the later of January 2, 2018
within 30 days of the due date (including
For decedents who died in 2017, Form
or the second anniversary of the
extensions) of Form 706 or the date of
706 must be filed by the executor of the
decedent’s death. For more information
filing Form 706 if the return is filed late. It
estate of every U.S. citizen or resident:
see
Rev. Proc. 2017–34.
also requires that the beneficiary’s initial
a. Whose gross estate, plus
basis in certain assets be consistent
adjusted taxable gifts and specific
Reminders
with the estate tax value of the asset.
exemption, is more than
Any estate required to file Form 706
Executors must provide
$5,490,000; or,
under section 6018(a) or 6018(b) also
documentation of their status.
b. Whose executor elects to transfer
must file Form 8971, Information
The credit for transfers made by
the DSUE amount to the surviving
Regarding Beneficiaries Acquiring
lifetime gift(s) is reunified with the credit
spouse, regardless of the size of the
Property From a Decedent, to satisfy
against transfers made at death. The
decedent's gross estate. See
the new consistent basis reporting
applicable credit amount for 2017 is
instructions for Part 6—Portability of
requirement. Additional guidance and
$2,141,800 (based on the basic
Deceased Spousal Unused
other information regarding consistent
exclusion amount of $5,490,000). This
Exclusion and sections 2010(c)(4)
basis reporting are being developed. If
does not include any applicable credit
and (c)(5), later.
you believe the new requirements
resulting from a deceased spousal
impact this estate or its beneficiaries,
To determine whether you must file a
unused exclusion (DSUE) amount
please check
IRS.gov/Form706
for
return for the estate under test “a”
received from a predeceased spouse or
additional information.
above, add:
any Restored Exclusion Amount on
taxable transfers to a same-sex spouse.
1. The adjusted taxable gifts (as
Closing letter procedure. Effective
Executors of estates who are not
defined in section 2503) made by the
for all estate tax returns filed on or after
required to file Form 706 under section
decedent after December 31, 1976;
June 1, 2015, closing letters will not be
6018(a) but who are filing to elect
issued unless requested by the
2. The total specific exemption
portability of DSUE amount to the
executor of the estate or the designated
allowed under section 2521 (as in effect
surviving spouse are not required to
power of attorney. To allow time for
before its repeal by the Tax Reform Act
report the value of certain property
processing, please wait at least four
of 1976) for gifts made by the decedent
eligible for the marital deduction under
months after filing Form 706 to request
after September 8, 1976; and
section 2056 or 2056A or the charitable
a closing letter.
3. The decedent's gross estate
deduction under section 2055 under the
valued as of the date of death.
special rule of Regulations section
Instead of an estate tax closing letter,
20.2010-2(a)(7)(ii). However, the value
the executor of the estate may request
Gross Estate
of those assets must be estimated and
an account transcript, which reflects
The gross estate includes all property in
included in the total value of the gross
transactions including the acceptance of
which the decedent had an interest
estate. The special rule does not apply
Form 706. Account transcripts are
(including real property outside the
to assets whose valuation is required for
available to authorized representatives
United States). It also includes:
eligibility under section 2032, 2032A,
making requests using Form 4506-T.
Certain transfers made during the
2652(a)(3), 6166 or other provision of
Transcripts are also available online to
decedent's life without an adequate and
the Code or Regulations.
registered tax professionals using the
full consideration in money or money's
A timely and complete Form 706
Transcript Delivery System (TDS).
worth,
must be filed by the executor of any
Specific instructions are available for
Annuities,
estate who intends to transfer the DSUE
requesting online transcripts using the
The includible portion of joint estates
amount to the decedent's surviving
TDS or hardcopy transcripts using Form
with right of survivorship (see
spouse, regardless of the amount of the
4506-T at
Transcripts in Lieu of Estate
instructions for Schedule E),
gross estate. See instructions for Part
Tax Closing
Letters. For questions
6—Portability of Deceased Spousal
about estate tax closing letter requests,
Unused Exclusion, later.
call 866-699-4083 or see the
Frequently
-2-
General Instructions
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