Instructions for Form
706-GS(T)
(Revised July 1999)
Generation-Skipping Transfer Tax Return for
Terminations
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.
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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 will vary depending on individual
circumstances. The average estimated time is:
If you have comments concerning the accuracy of these 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
957430001. DO NOT send the form to this address. Instead, see Where To File
below.
General Instructions
Purpose of Form
Form 706-GS(T) is used by a trustee to
figure and report the tax due from certain
trust terminations that are subject to the
generation-skipping transfer (GST) tax.
When To File
Generally, the trustee must file Form
706-GS(T) by April 15th of the year
following the calendar year in which the
termination occurs. If the due date falls
on a Saturday, Sunday, or legal holiday,
file on the next business day.
If you are not able to file the return by
the due date, you may request an
extension of time to file by filing Form
2758, Application for Extension of Time
To File Certain Excise, Income,
Information, and Other Returns. This is
not an automatic extension, so be sure to
file Form 2758 in adequate time to allow
the IRS to consider the application and to
reply before the return's regular due date.
Where To File
File Form 706-GS(T) at the Internal
Revenue Service Center indicated below
for the state where an estate or gift tax
Who Must File
In general, the trustee of any trust that
has a taxable termination (defined on
page 2) must file Form 706-GS(T) for the
tax year in which the termination
occurred.
Trusts
Nonexplicit trusts. An arrangement that
has substantially the same effect as a
trust will be treated as a trust even though
it is not an explicit trust. Examples of such
arrangements are insurance and annuity
contracts, arrangements involving life
estates and remainders, and estates for
years.
In general, a transfer of property in
which the identity of the transferee is
conditioned on the occurrence of an event
is a transfer in trust. This rule does not
apply to a testamentary trust, however, if
the event is to occur within 6 months of
the transferor's date of death.
Nonexplicit trusts do not include
decedents' estates.
In the case of a nonexplicit trust, the
person in actual or constructive
possession of the property involved is
considered the trustee and is liable for
filing Form 706-GS(T).
If you are filing this return for a
nonexplicit trust, see the instructions for
line 1b on page 3.
Separate trusts. You must treat as
separate trusts: (a) portions of a trust that
are attributable to transfers from different
transferors; and (b) substantially separate
and independent shares of different
beneficiaries in a trust.
Alaska, Arizona, California
(counties of Alpine, Amador,
Butte, Calaveras, Colusa,
Contra Costa, Del Norte, El
Dorado, Glenn, Humboldt,
Lake, Lassen, Marin,
Mendocino, Modoc, Napa,
Nevada, Placer, Plumas,
Sacramento, San Joaquin,
Shasta, Sierra, Siskiyou,
Solano, Sonoma, Sutter,
Tehama, Trinity, Yolo, and
Yuba), Colorado, Idaho,
Montana, Nebraska,
Nevada, North Dakota,
Oregon, South Dakota,
Utah, Washington,
Wyoming
Ogden, UT 84201
Form
Recordkeeping
Learning about
the law or the
form
Preparing the
form
Copying,
assembling, and
sending the form
to the IRS
California (all other
counties), Hawaii
Fresno, CA 93888
706-GS(T)
40 min.
29 min.
32 min.
20 min.
Schedule A
13 min.
17 min.
38 min.
20 min.
Schedule B
13 min.
4 min.
20 min.
20 min.
return of the settlor must be filed to report
the most recent transfer to the trust. If the
settlor is (or was at death) a nonresident
citizen or alien, mail it to the Internal
Revenue Service Center, Philadelphia,
PA 19255, U.S.A.
Florida, Georgia, South
Carolina
Atlanta, GA 39901
New Jersey, New York
(New York City and
counties of Nassau,
Rockland, Suffolk, and
Westchester)
Holtsville, NY 00501
New York (all other
counties), Connecticut,
Maine, Massachusetts, New
Hampshire, Rhode Island,
Vermont
Andover, MA 05501
Illinois, Iowa, Minnesota,
Missouri, Wisconsin
Kansas City, MO 64999
Delaware, District of
Columbia, Maryland,
Pennsylvania, Virginia
Philadelphia, PA 19255
Indiana, Kentucky,
Michigan, Ohio, West
Virginia
Cincinnati, OH 45999
Kansas, New Mexico,
Oklahoma, Texas
Austin, TX 73301
Alabama, Arkansas,
Louisiana, Mississippi,
North Carolina, Tennessee
Memphis, TN 37501
Cat. No. 10829R