Instructions For Form 706 - 2016 Page 50
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54accounting fees. The estate is not
may also notify the IRS (not more than
paid. Also show the amount being
required to separately identify or
annually) as payments are being made
claimed for refund.
substantiate these expenses; however,
and possibly qualify for a partial refund
Note. If you made partial claims for a
each expense must meet the
based on the amounts paid through the
recurring expense, the amount
requirements of section 2053 to be
date of the notice.
presently claimed as a deduction under
deductible.
Specific Instructions
section 2053 will only include the
Notice of Final Resolution of
amount presently claimed, not the
Part 1. General Information
Claim
cumulative amount.
Complete Part 1 by providing
When an expense that was the subject
information that is correct and complete
of a section 2053 protective claim for
Part 3. Other Schedules PC and
as of the time Schedule PC is filed. If
refund is finally determined, the estate
Forms 843 Filed by the Estate
filing an updated Schedule PC with a
must notify the IRS that the claim for
supplemental Form 706 or as notice of
On the chart in Part 3, provide
refund is ready for consideration. The
final resolution of the protective claim for
information on other protective claims
notification should provide facts and
refund, be sure to update the
for refund that have been previously
evidence substantiating the deduction
information from the original filing to
filed on behalf of the estate (if any),
under section 2053 and the resulting
ensure that it is accurate. Be particularly
whether on other Schedules PC or on
recomputation of the estate tax liability.
careful to verify that contact information
Form 843. When the initial claim for
A separate notice of final resolution
(addresses and telephone numbers)
refund is filed, only information from
must be filed with the IRS for each
and the reason for filing Schedule PC
Form(s) 843 need be included in Part 3.
resolved section 2053 protective claim
are indicated correctly. If the fiduciary is
However, when filing a partial or final
for refund.
different from the executor identified on
claim for refund, complete Part 3 by
page 1 of Form 706 or has changed
including the status of all claims filed by
There are two means by which the
since the initial notice of protective claim
or on behalf of the estate, including
estate may notify the IRS of the
for refund was filed, attach letters
those filed on other Schedules PC with
resolution of the uncertainty that
testamentary, letters of administration,
Form 706. For each such claim, give the
deprived the estate of the deduction
or similar documentation evidencing the
place of filing, date of filing and amount
when Form 706 was filed. The estate
fiduciary's authority to file the protective
of the claim.
may file a supplemental Form 706 with
claim for refund on behalf of the estate.
an updated Schedule PC and including
Continuation Schedule
Include a copy of Form 56, Notice
each schedule affected by the
Concerning Fiduciary Relationship, if it
allowance of the deduction under
When you need to list more assets or
has been filed.
section 2053. Page 1 of Form 706
deductions than you have room for on
should contain the notation
one of the main schedules, use the
Part 2. Claim Information
“Supplemental Information – Notification
Continuation Schedule at the end of
of Consideration of Section 2053
Form 706. It provides a uniform format
For a protective claim for refund to be
Protective Claim(s) for Refund” and
for listing additional assets from
properly filed and considered, the claim
include the filing date of the initial notice
Schedules A through I and additional
or expense forming the basis of the
of protective claim for refund. A copy of
deductions from Schedules J, K, L, M,
potential 2053 deduction must be
the initial notice of claim should also be
and O.
clearly identified. Using the check boxes
submitted.
provided, indicate whether you are filing
Please remember to:
the initial claim for refund, a claim for
Alternatively, the estate may notify
Use a separate Continuation
partial refund or a final claim. On the
the IRS by filing an updated Form 843,
Schedule for each main schedule you
chart in Part 2, give the Form 706
Claim for Refund and Request for
are continuing. Do not combine assets
schedule and item number of the claim
Abatement. Form 843 must contain the
or deductions from different schedules
or expense. List any amounts claimed
notation “Notification of Consideration of
on one Continuation Schedule.
under exceptions for ascertainable
Section 2053 Protective Claim(s) for
Make copies of the blank schedule
amounts (Regulations section
Refund,” including the filing date of the
before completing it if you expect to
20.2053-1(d)(4)), claims and
initial notice of protective claim for
need more than one.
counterclaims in related matters
refund, on page 1. A copy of the initial
Use as many Continuation Schedules
(Regulations section 20.2053-4(b)), or
notice of claim must also be submitted.
as needed to list all the assets or
claims under $500,000 (Regulations
deductions.
section 20.2053-4(c)). Provide all
The estate should notify the IRS of
Enter the letter of the schedule you
relevant information as described
resolution within 90 days of the date the
are continuing in the space at the top of
including, most importantly, an
claim or expense is paid or the date on
the Continuation Schedule.
explanation of the reasons and
which the amount of the claim becomes
Use the Unit value column only if
contingencies delaying the actual
certain and no longer subject to
continuing Schedule B, E, or G. For all
payment to be made in satisfaction of
contingency, whichever is later.
other schedules, use this space to
the claim or expense. Complete
Separate notifications must be
continue the description.
columns E and F only if filing a notice of
submitted for every section 2053
Carry the total from the Continuation
partial or final resolution. Show the
protective claim for refund that was filed.
Schedules forward to the appropriate
amount of ancillary or related expenses
line on the main schedule.
to be included in the claim for refund
If the final section 2053 claim or
and indicate whether this amount is
expense involves multiple or recurring
estimated, agreed upon, or has been
payments, the 90-day period begins on
the date of the last payment. The estate
-50-
Instructions for Schedules
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