2011-2025 Form

What is the 706 Form

The 706 Form, officially known as the United States Estate (and Generation-Skipping Transfer) Tax Return, is a tax document required by the Internal Revenue Service (IRS) for reporting the value of an estate after a person's death. This form is essential for determining whether estate taxes are owed based on the total value of the deceased's assets. It is typically filed by the executor of the estate and must include detailed information about the decedent's property, debts, and any applicable deductions or exemptions.

How to use the 706 Form

Using the 706 Form involves several key steps to ensure accurate reporting and compliance with IRS regulations. First, gather all necessary documentation, including the decedent's will, asset valuations, and any debts owed by the estate. Next, complete the form by providing detailed information about the estate's assets, liabilities, and deductions. It is crucial to ensure that all values are accurate and supported by documentation. Once completed, the form must be signed and submitted to the IRS by the appropriate deadline.

Steps to complete the 706 Form

Completing the 706 Form requires careful attention to detail. Follow these steps:

• Gather necessary documents, including the decedent's will and asset valuations.
• Identify all assets owned by the decedent at the time of death, including real estate, bank accounts, and investments.
• List all debts and liabilities of the estate, which can be deducted from the total value.
• Complete the form sections, ensuring that all values are accurately reported.
• Review the completed form for errors or omissions before signing.
• Submit the form to the IRS by the filing deadline.

Legal use of the 706 Form

The legal use of the 706 Form is critical for ensuring compliance with federal estate tax laws. This form must be filed if the gross estate exceeds the exemption threshold set by the IRS. Filing the form accurately and on time helps avoid penalties and interest on unpaid taxes. It is advisable to consult with a tax professional or attorney specializing in estate planning to navigate complex legal requirements and ensure that all necessary information is included.

Filing Deadlines / Important Dates

The filing deadline for the 706 Form is nine months after the date of the decedent's death. However, an extension may be requested, which can provide an additional six months to file the form. It is important to adhere to these deadlines to avoid penalties. Executors should also be aware of any state-specific deadlines that may apply, as these can vary by jurisdiction.

Required Documents

To complete the 706 Form, several documents are required:

• The decedent's will and any codicils.
• Appraisals of real estate and other significant assets.
• Records of debts and liabilities owed by the estate.
• Documentation of any gifts made by the decedent prior to death that may affect the estate tax calculation.
• Any previous estate tax returns filed for the decedent or related estates.