Instructions For Form 706-Na - 2016 printable pdf download

Instructions for Form 706-NA

Department of the Treasury

Internal Revenue Service

(Rev. September 2016)

United States Estate (and Generation-Skipping Transfer) Tax Return

Estate of nonresident not a citizen of the United States

Section references are to the Internal Revenue

questions about estate tax closing letter

Nonresident alien decedent. A

Code unless otherwise noted.

requests, call (866) 699-4083 or see the

nonresident alien decedent is a

Frequently Asked Questions on Estate

decedent who is neither domiciled in nor

Tax

at IRS.gov.

a citizen of the United States at the time

What's New

of death. For purposes of this form, a

Future Developments

citizen of a U.S. possession is not a

Consistent basis reporting. On July

For the latest information about

U.S. citizen.

31, 2015, the Surface Transportation

developments related to Form 706-NA

and Veterans Health Care Choice

Long-term United States resident. A

and its instructions, such as legislation

Improvement Act of 2015 (Public Law

long-term U.S. resident is an alien who

enacted after they were published, go to

114-41) was enacted. Section 2004 of

has been a lawful permanent resident of

the Act requires that estates report, both

the U.S. (green card holder) in at least 8

to the IRS and the recipient, the estate

of the last 15 tax years ending with the

General Instructions

tax value of each asset included in the

tax year in which U.S. residency is

gross estate within 30 days of filing

terminated.

Purpose of Form

Form 706-NA or earlier if the return is

Executor. An executor is the personal

filed late. It also requires that the basis

Form 706-NA is used to compute estate

representative, executor, executrix,

of certain assets when sold or otherwise

and generation-skipping transfer (GST)

administrator, or administratrix of the

disposed of must be consistent with the

tax liability for nonresident alien

deceased person's estate. If no

basis (estate tax value) of the asset

decedents. The estate tax is imposed

executor is appointed, qualified, and

when it was received by the beneficiary.

on the transfer of the decedent's taxable

acting in the United States, every

To satisfy the new reporting

estate rather than on the receipt of any

person in actual or constructive

requirements, the estate must file Form

part of it.

possession of any of the decedent's

8971, Information Regarding

property must file a return. If more than

For information about transfer

Beneficiaries Acquiring Property from a

one person must file, it is preferable that

certificates for U.S. assets, write

Decedent. See Form 8971 and

TIP

they join in filing one complete return.

to the following address.

Instructions at

Otherwise, each must file as complete a

Additional guidance and other

Internal Revenue Service

return as possible, including a full

information necessary to fulfill the

Cincinnati, OH 45999

description of the property and each

requirements of the Act are being

Stop 824G

person's name who holds an interest in

developed. If you believe the new

it.

requirements impact this estate or its

Executors must provide

beneficiaries, please check

Note. In order to complete this return,

documentation proving their status.

for additional

you must obtain Form 706, United

Documentation will vary but may include

information.

States Estate (and Generation-Skipping

a certified copy of the will or a court

Closing letter procedure. Effective for

Transfer) Tax Return, and its

order designating the executor(s). A

all estate tax returns filed on or after

instructions. You must attach schedules

statement by the executor(s) attesting to

June 1, 2015, closing letters will not be

from Form 706 if you intend to claim a

their status is insufficient.

issued unless requested by the

marital deduction, a charitable

U.S. expatriate. Special estate tax

executor of the estate or the designated

deduction, a qualified conservation

rules may apply to decedents who

power of attorney. To allow time for

easement exclusion, or a credit for tax

expatriated from the United States prior

processing, please wait at least four

on prior transfers, or if you answer “Yes”

to death. For these purposes, both U.S.

months after filing Form 706-NA to

to question 5, 7, 8, 9a, 9b, or 11 in Part

citizens who relinquished their

request a closing letter.

III, General Information. You will need

citizenship and long-term residents, as

the instructions to Form 706 to explain

Instead of an estate tax closing letter,

defined in section 877(e), who have

how to value stocks and bonds. Make

the executor of the estate may request

surrendered their green card or taken a

sure that you use the version of Form

an account transcript, which reflects

position under a tax treaty that they are

706 that corresponds to the date of the

transactions including the acceptance of

solely a resident of the other country,

decedent's death.

Form 706-NA and the completion of an

are treated as expatriates.

examination. Account transcripts are

Definitions

For decedents who expatriated prior

available online to registered tax

to June 17, 2008, and were still subject

The following definitions apply in these

professionals using the Transcript

to the 10-year alternative tax regime of

instructions.

Delivery System (TDS) or to authorized

section 877(b) on the date of death, the

representatives making requests using

United States. The United States

rules in section 2107 apply to determine

Form 4506-T. Specific instructions are

means the 50 states and the District of

the value of decedent’s U.S. taxable

available for requesting online

Columbia.

estate. For decedents who expatriated

transcripts using the TDS or hardcopy

on or after June 17, 2008, and were

transcripts using Form 4506-T. For

Sep 01, 2016

Cat. No. 63118N

Instructions For Form 706-Na - 2016

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