Instructions for Form 706
(Revised July 1999)
United States Estate (and Generation-Skipping
Transfer) Tax Return
(For decedents dying after December 31, 1998.)
Section references are to the Internal Revenue Code unless otherwise noted.
Department of the Treasury
Internal Revenue Service
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the
Internal Revenue laws of the United States. You are required to give us the information. We need
it to ensure that you are complying with these laws and to allow us to figure and collect the right
amount of tax.
You are not required to provide the information requested on a form that is subject to the
Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records
relating to a form or its instructions must be retained as long as their contents may become
material in the administration of any Internal Revenue law. Generally, tax returns and return
information are confidential as required by section 6103.
The time needed to complete and file this form and related schedules will vary depending on
individual circumstances. The estimated average times are:
If you have comments concerning the accuracy of these time estimates or suggestions for
making this form simpler, we would be happy to hear from you. You can write to the Tax Forms
Committee, Western Area Distribution Center, Rancho Cordova, CA 95743-0001. DO NOT send
the tax form to this address. Instead, see Where To File on page 2.
General Instructions
Changes To Note
l See the Instructions for Part 2. Tax
Computation, line 11, for unified credit
(applicable credit amounts) and applicable
exclusion amounts for years 1987 through
2006 and after.
l Various dollar amounts and limitations
relevant to Form 706 are now indexed for
inflation. For decedents dying in 1999, the
following amounts have increased:
· the ceiling on special use valuation is
$760,000;
• the generation-skipping transfer tax
exemption is $1,010,000; and
• the amount used in computing the 2%
portion of estate tax payable in installments
is $1,010,000.
The IRS will publish amounts for future
years in an annual revenue procedure.
•
Part 1................................................
4
•
Part 2................................................
4
•
Part 3................................................
5
•
Part 4................................................
9
•
Part 5................................................
10
••
Schedule A*......................................
11
••
Schedule A-1*...................................
11
••
Schedule B.......................................
11
••
Schedule C*......................................
11
Form
Recordkeeping
Learning about
the law or the
form
Preparing
the form
Copying,
assembling, and
sending the form
to the IRS
••
Schedule D*......................................
11
••
Schedule E*......................................
11
••
Schedule F*......................................
11
706
2 hr., 11 min.
1 hr., 25 min.
3 hr., 35 min.
49 min.
Sch. A
20 min.
16 min.
10 min.
20 min.
••
Schedule G.......................................
11
A-1
46 min.
25 min.
59 min.
49 min.
••
Schedule H.......................................
14
B
20 min.
16 min.
20 min.
20 min.
C
13 min.
2 min.
8 min.
20 min.
••
Schedule I.........................................
14
D
7 min.
6 min.
8 min.
20 min.
••
Schedule J*.......................................
16
E
40 min.
7 min.
24 min.
20 min.
F
33 min.
8 min.
21 min.
20 min.
••
Schedule K.......................................
16
G
26 min.
23 min.
11 min.
14 min.
••
Schedule L........................................
17
H
26 min.
7 min.
10 min.
14 min.
I
26 min.
27 min.
11 min.
20 min.
••
Schedule M*.....................................
17
J
26 min.
7 min.
16 min.
20 min.
••
Schedule O.......................................
17
K
26 min.
10 min.
10 min.
20 min.
••
Schedule P.......................................
18
L
13 min.
5 min.
10 min.
20 min.
M
13 min.
31 min.
24 min.
20 min.
••
Schedule Q.......................................
18
O
20 min.
11 min.
18 min.
17 min.
••
Schedules R, R-1.............................
19
P
7 min.
14 min.
18 min.
14 min.
Q
7 min.
10 min.
11 min.
14 min.
••
Schedule T........................................
22
Q Wksheet
7 min.
10 min.
59 min.
20 min.
••
Schedule U.......................................
23
R
20 min.
34 min.
1 hr., 2 min.
49 min.
R-1
7 min.
29 min.
24 min.
20 min.
••
Continuation Schedule......................
24
T
1 hr., 12 min.
27 min.
1 hr., 14 min.
1 hr., 3 min.
••
Worksheet for Schedule Q...............
25
U
20 min.
3 min.
29 min.
20 min.
Cont. Sch.
20 min.
3 min.
7 min.
20 min.
••
Index .................................................
26
*For Schedules A, A-1, C, D, E, F, J, and M,
see instructions in the Form 706 itself.
After
For Decedents Dying
and
Before
Use Revision of
Form 706 Dated
........................
January 1, 1982
November 1981
December 31, 1981
October 23, 1986
November 1987
December 31, 1989
October 9, 1990
October 1988
October 8, 1990
January 1, 1998
April 1997
December 31, 1997
January 1, 1999
July 1998
December 31, 1998
............................
July 1999
F
Paying the Tax..................................
2
Contents
Page
G
Signature and Verification................
2
•
General Instructions..........................
1
H
Amending Form 706.........................
3
•
Changes To Note.............................
1
I
Supplemental Documents.................
3
A
Purpose of Form...............................
2
J
Rounding Off to Whole Dollars.........
3
B
Which Estates Must File...................
2
K
Penalties ...........................................
3
C
Executor............................................
2
L
Obtaining Forms and Publications...
3
D
When To File....................................
2
•
Specific Instructions..........................
3
E
Where To File...................................
2
Cat. No. 16779E
