Form 706-NA is used to compute estate and generation-skipping transfer (GST) tax liability for nonresident alien decedents.
The estate tax is
imposed on the transfer of the decedent's taxable estate rather than on the receipt of any part of it.
For information about transfer certificates for U.S. assets, write to the Internal Revenue Service, Estate Tax Group, S:C:15:T1,
950 L'Enfant
Plaza, SW, Washington, DC 20024.
The following terms are used often in these instructions:
- The United States means the 50 states and the District of Columbia.
- A nonresident alien decedent means a decedent who is neither domiciled in nor a citizen of the United States at the time of
death. For purposes of this form, a citizen of a U.S. possession is not a U.S. citizen.
- A U.S. expatriate generally is one who lost U.S. citizenship within 10 years before the date of death, and for whom a principle
purpose in doing so was to avoid U.S. taxes. This also applies to certain long-term residents (as defined in section 877(e))
of the United States who
lost residency on or after February 6, 1995. If the decedent's average annual net income tax liability or net worth exceeds
certain limits, the
decedent is presumed to have a principle purpose of avoiding U.S. taxes (section 877(a)). The executor has the burden of proving
otherwise. Be sure to
see the instructions for and then to answer Question 6 of Part III.
The executor must file Form 706-NA if the date of death value of the decedent's gross estate located in the United States
under Internal Revenue
Code situs rules exceeds the filing limit. The filing limit is $60,000 reduced by the sum of: (1) the gift tax specific exemption (section
2521) allowed with respect to gifts made between September 9, 1976, and December 31, 1976, inclusive, and (2) the total taxable gifts made
after December 1976, that are not included in the gross estate.
The executor is the personal representative, executor, executrix, administrator, or administratrix of the deceased person's estate. If
no executor is appointed, qualified, and acting in the United States, every person in actual or constructive possession of
any of the decedent's
property must file a return. If more than one person must file, it is preferable that they join in filing one complete return.
Otherwise, each must
file as complete a return as possible, including a full description of the property and each person's name who holds an interest
in it.
File Form 706-NA within 9 months after the date of death unless an extension of time to file was granted. In that case, attach
a copy of the
approved Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Tax.
Form 706-NA must be filed at the Internal Revenue Service Center, Philadelphia, PA 19255.
The law provides for penalties for both late filing of returns and late payment of tax unless there is reasonable cause for
the delay. There are
also penalties for valuation understatements that cause an underpayment of tax and for a willful attempt to evade or defeat
payment of tax.
Death tax treaties are in effect with the following countries:
| Australia |
Italy |
| Austria |
Japan |
| Canada* |
Netherlands |
| Denmark |
Norway |
| Finland |
Republic of South Africa |
| France |
Sweden |
| Germany |
Switzerland |
| Greece |
United Kingdom |
| Ireland |
|
| *Article XXIX B of the United States—Canada Income Tax Treaty |
If you are reporting any items on this return based on the provisions of a death tax treaty or protocol, you may have to attach
a statement to this
return disclosing the return position that is treaty based. See Regulations section 301.6114-1 for details.
