Instructions For Form 706-A - United States Additional Estate Tax Return (Page 4 of 5) in pdf

Paid Preparer

Qualified Replacement or

Line 3a

Authorization

Exchange Property

Enter the amount of the estate tax for

the decedent's estate that is

Qualified replacement property means

If you want to allow the IRS to discuss

recomputed using FMV at the estate tax

any real property that is to be used for

the tax return with the paid preparer who

valuation date rather than actual use

the qualified use and that:

signed it, check the “Yes” box in the

value. Attach a schedule showing the

Was acquired in an exchange that

signature area of the return. This

recomputed estate tax.

qualified under section 1031,

authorization applies only to the

Was purchased by the qualified heir

individual whose signature appears in

Schedule C. Dispositions

within the time specified by section

the Paid Preparer Use Only section of

to Family Members of the

1033 to replace the qualified property,

the return. It does not apply to the firm, if

Qualified Heir

any, shown in that section. If the “Yes”

Is real property into which the

box is checked, you are authorizing the

qualified real property has been

Agreement by transferee. You may

IRS to call the paid preparer to answer

converted.

enter a disposition to a family member

any questions that may arise during the

of the qualified heir on Schedule C only

processing of its return. You are also

Qualified exchange property means

if you file this Form 706-A on time

authorizing the paid preparer to:

any real property that is to be used for

(including extensions) and attach an

Give the IRS any information that is

the same qualified use that the property

agreement by the transferee to be

missing from your return,

for which it was exchanged was used.

personally liable for any additional

Call the IRS for information about the

estate tax under section 2032A(c) on

processing of your return or the status of

The period of the decedent's or

the interest received. For a format of the

any refund or payment(s), and

family member's ownership, qualified

agreement, see Form 706,

Respond to certain IRS notices that

use, or material participation with

Schedule A-1.

you may have shared with the preparer

respect to replaced or exchanged

about math errors, offsets, and return

If you are not filing this Form 706-A

property is treated as the period of

preparation.

on time, or if the transferee does not

ownership, qualified use, or material

The notices will not be sent to the

enter into the agreement, you must

participation with respect to the qualified

preparer. You are not authorizing the

enter the disposition(s) on Schedule A

replacement or exchange property. This

paid preparer to receive any refund

instead of Schedule C.

applies only to that part of the FMV of

check, bind you to anything (including

the replacement or exchange property

How To Complete

any additional tax liability), or otherwise

(at the date of acquisition) that does not

Schedule C

represent you before the IRS. If you

exceed the FMV of the replaced or

want to expand the paid preparer’s

See the instructions for completing

exchanged property (at the date of

authorization, see Pub. 947, Practice

columns A, B, and C of Schedule A on

disposition).

Before the IRS and Power of Attorney.

page 3.

However, the authorization will

Note. The 10-year recapture period is

Signature(s)

automatically end no later than the due

extended under certain circumstances.

date (excluding extensions) for filing the

See Two-Year Grace

Form 706-A must be signed. The

tax return. If you want to revoke the

Period—Commencement Date earlier.

taxpayer (or person filing on his or her

authorization before it ends, see Pub.

behalf) must verify and sign the

How To Complete

947.

declaration on page 1 under penalties of

Schedule B

perjury. The taxpayer may use Form

Privacy Act and Paperwork Reduc-

2848, Power of Attorney and

Column A. Make one entry for each

tion Act Notice. We ask for the

Declaration of Representative, to

item of qualified replacement or

information on this form to carry out the

authorize another person to act for him

exchange property.

Internal Revenue laws of the United

or her before the Internal Revenue

States. We need it to figure and collect

Column B. Describe the qualified

Service.

the right amount of tax. Subtitle B,

replacement property with enough detail

Estate and Gift Taxes, of the Internal

Generally, anyone who is paid to

so that the IRS can locate and value it.

Revenue Code, imposes a tax in some

prepare the return must sign the return

For more information, see the

cases on qualified heirs who dispose of

in the space provided and fill in the Paid

instructions to Schedule A of Form 706.

property valued under special valuation

Preparer's Use Only area. See section

Column C. For an involuntary

rules. This form is used to determine the

7701(a)(36)(B) for exceptions.

conversion, enter the cost of the

amount of the taxes that you owe.

In addition to signing and completing

replacement property. For an exchange,

Section 6011 requires you to provide

the required information, the paid

enter the FMV of the replacement

the requested information if the tax is

preparer must give a copy of the

property.

applicable to you. Section 6109 requires

completed return to the taxpayer.

you to provide your identifying number.

Part II—Tax Computation

Note. A paid preparer may sign original

Generally, tax returns and return

Line 2

or amended returns by rubber stamp,

information are confidential, as required

mechanical device, or computer

by section 6103. However, section 6103

Enter the total value at the estate tax

software program.

allows or requires the Internal Revenue

valuation date of all specially valued

Service to disclose or give such

property that the executor elected, on

information shown on your Form 706-A

the Form 706 filed for the decedent's

to the Department of Justice to enforce

estate, to value at actual use rather than

the tax laws, both civil and criminal, and

FMV.

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Instructions For Form 706-A - United States Additional Estate Tax Return Page 4

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