Prior Revisions of Form 706
| After
|
For Decedents Dying and
|
Before
|
Use Revision of Form 706 Dated
|
| December 31, 1981
|
|
October 23, 1986
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November 1987
|
| December 31, 1989
|
|
October 9, 1990
|
October 1988
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| October 8, 1990
|
|
January 1, 1998
|
April 1997
|
| December 31, 1997
|
|
January 1, 1999
|
July 1998
|
| December 31, 1998
|
|
January 1, 2001
|
July 1999
|
| December 31, 2000
|
|
January 1, 2002
|
November 2001
|
| Contents
|
|
Page
|
| ·
|
General Instructions
|
1
|
| ·
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Changes To Note
|
1
|
| A
|
Purpose of Form
|
1
|
| B
|
Which Estates Must File
|
1
|
| C
|
Executor
|
2
|
| D
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When To File
|
2
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| E
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Where To File
|
2
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| F
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Paying the Tax
|
2
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| G
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Signature and Verification
|
2
|
| H
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Amending Form 706
|
2
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| I
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Supplemental Documents
|
2
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| J
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Rounding Off to Whole Dollars
|
2
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| K
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Penalties
|
2
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| L
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Obtaining Forms and Publications
|
3
|
| ·
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Specific Instructions
|
3
|
| ·
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Part 1
|
3
|
| ·
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Part 2
|
3
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| ·
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Part 3
|
6
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| ·
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Part 4
|
10
|
| ·
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Part 5
|
11
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| ··
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Schedule A*
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11
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| ··
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Schedule A-1*
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11
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| ··
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Schedule B
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11
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| ··
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Schedule C*
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12
|
| ··
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Schedule D*
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12
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| ··
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Schedule E*
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12
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| ··
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Schedule F*
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12
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| ··
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Schedule G
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12
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| ··
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Schedule H
|
14
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| ··
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Schedule I
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14
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| ··
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Schedule J*
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16
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| ··
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Schedule K
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16
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| ··
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Schedule L
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17
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| ··
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Schedule M*
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17
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| ··
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Schedule O
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17
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| ··
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Schedule P
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18
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| ··
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Schedule Q
|
19
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| ··
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Schedules R, R-1
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20
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| ··
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Schedule T
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23
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| ··
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Schedule U
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25
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| ··
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Continuation Schedule
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26
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| ··
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Worksheet for Schedule Q
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27
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| ··
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Index
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28
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| *For Schedules A, A-1, C, D, E, F, J, and M, see instructions in the Form 706 itself.
|
General Instructions
Changes To Note
A. Purpose of Form
The executor of a decedent's estate uses Form 706 to figure the estate tax imposed by Chapter 11 of the Internal Revenue Code. This tax is levied
on the entire taxable estate, not just on the share received by a particular beneficiary. Form 706 is also used to compute the generation-skipping
transfer (GST) tax imposed by Chapter 13 on direct skips (transfers to skip persons of interests in property included in the decedent's gross estate).
B. Which Estates Must File
For decedents dying in 2002 Form 706 must be filed by the executor for the estate of every U.S. citizen or resident whose gross estate, plus
adjusted taxable gifts and specific exemption, is more than $1,000,000.
To determine whether you must file a return for the estate, add:
- The adjusted taxable gifts (under section 2001(b)) made by the decedent after December 31, 1976;
- The total specific exemption allowed under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) for gifts made by the
decedent after September 8, 1976; and
- The decedent's gross estate valued at the date of death.
Gross Estate
The gross estate includes all property in which the decedent had an interest (including real property outside the United States). It also includes:
- Certain transfers made during the decedent's life without an adequate and full consideration in money or money's worth;
- Annuities;
- The includible portion of joint estates with right of survivorship (see the instructions on the back of Schedule E);
- The includible portion of tenancies by the entirety (see the instructions on the back of Schedule E);
- Certain life insurance proceeds (even though payable to beneficiaries other than the estate) (see the instructions on the back of Schedule
D);
- Property over which the decedent possessed a general power of appointment;
- Dower or curtesy (or statutory estate) of the surviving spouse;
- Community property to the extent of the decedent's interest as defined by applicable law.
For more specific information, see the instructions for Schedules A through I.
U. S. Citizens or Residents; Nonresident Noncitizens
File Form 706 for the estates of decedents who were either U.S. citizens or U.S. residents at the time of death. For estate tax purposes, a
resident is someone who had a domicile in the United States at the time of death. A person acquires a domicile by living in a place for even a brief
period of time, as long as the person had no intention of moving from that place.
File Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United
States, for the estates of nonresident alien decedents (decedents who were neither U.S. citizens nor residents at the time of death).
Residents of U. S. Possessions
All references to citizens of the United States are subject to the provisions of sections 2208 and 2209, relating to decedents who were U.S.
citizens and residents of a U.S. possession on the date of death. If such a decedent became a U.S. citizen only because of his or her connection with
a possession, then the decedent is considered a nonresident alien decedent for estate tax purposes, and you should file Form 706-NA. If such a
decedent became a U.S. citizen wholly independently of his or her connection with a possession, then the decedent is considered a U.S. citizen for
estate tax purposes, and you should file Form 706.
C. Executor
The term executor means the executor, personal representative, or administrator of the decedent's estate. If none of these is appointed,
qualified, and acting in the United States, every person in actual or constructive possession of any property of the decedent is considered an
executor and must file a return.
D. When To File
You must file Form 706 to report estate and/or generation-skipping transfer tax within 9 months after the date of the decedent's death unless you
receive an extension of time to file. Use Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and
Generation-Skipping Transfer) Taxes, to apply for an extension of time to file. If you received an extension, attach a copy of it to Form 706.
Private delivery services.
You can use certain private delivery services designated by the IRS to meet the timely mailing as timely filing/paying rule for tax returns
and payments. The most recent list of designated private delivery services was published by the IRS in October 2001. The list includes only the
following:
- Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, Second Day Service.
- DHL Worldwide Express (DHL): DHL Same Day Service, DHL USA Overnight.
- Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day.
- United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus,
and UPS Worldwide Express.
The private delivery service can tell you how to get written proof of the mailing date.
E. Where To File
File Form 706 at the Internal Revenue Service Center listed below.
| If the decedent was at death a . . .
|
Then the address is: Internal Revenue Service Center
|
| Nonresident U.S. citizen
|
Philadelphia, PA 19255, USA
|
| Filer other than nonresident U.S. citizen Filer other than nonresident U.S. citizen (private delivery service)
|
Cincinnati, OH 45999 201 W. Rivercenter Blvd. Covington, KY 41011
|
F. Paying the Tax
The estate and GST taxes are due within 9 months after the date of the decedent's death unless an extension of time for payment has been granted,
or unless you have properly elected under section 6166 to pay in installments, or under section 6163 to postpone the part of the tax attributable to a
reversionary or remainder interest. These elections are made by checking lines 3 and 4 (respectively) of Part 3, Elections by the Executor, and
attaching the required statements.
If the tax paid with the return is different from the balance due as figured on the return, explain the difference in an attached statement. If you
have made prior payments to IRS or redeemed certain marketable United States Treasury bonds to pay the estate tax (see the last paragraph of the
instructions to Schedule B), attach a statement to Form 706 including these facts. If an extension of time to pay has been granted, attach a copy of
the approved Form 4768 to Form 706.
Paying by check.
Make the check payable to the United States Treasury. Please write the decedent's name, social security number, and Form 706 on the check to
assist us in posting it to the proper account.
G. Signature and Verification
If there is more than one executor, all listed executors must verify and sign the return. All executors are responsible for the return
as filed and are liable for penalties provided for erroneous or false returns.
If two or more persons are liable for filing the return, they should all join together in filing one complete return. However, if they are unable
to join in making one complete return, each is required to file a return disclosing all the information the person has in the case, including the name
of every person holding an interest in the property and a full description of the property. If the appointed, qualified, and acting executor is unable
to make a complete return, then every person holding an interest in the property must, on notice from the IRS, make a return regarding that interest.
The executor who files the return must, in every case, sign the declaration on page 1 under penalties of perjury. If the return is prepared by
someone other than the person who is filing the return, the preparer must also sign at the bottom of page 1.
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