Blank IRS 706 Template

The IRS Form 706 is used to report the value of an estate and calculate the federal estate tax owed. This form is essential for executors of estates to ensure compliance with tax laws following a person's death. Understanding how to complete this form can help streamline the estate settlement process; click the button below to get started.

Article Guide

The IRS 706 form, also known as the United States Estate (and Generation-Skipping Transfer) Tax Return, plays a critical role in estate planning and tax compliance. This form is not merely an obligation; it serves as a tool for properly reporting the value of a deceased individual's estate. Primarily, it is utilized when the gross estate exceeds the federal estate tax exemption threshold, which can change with tax law revisions. One must include a comprehensive inventory of assets, liabilities, and deductions on this form, ensuring full transparency in the estate's financial landscape. By filing Form 706, executors can assess whether any estate taxes are owed, providing clarity to beneficiaries and ensuring compliance with federal taxation requirements. It's essential to understand deadlines and filing procedures associated with this form, as delays can lead to penalties or complications in estate settlements. Understanding these key aspects will empower individuals to navigate the estate tax process with confidence.

Form Sample

Form 706

(Rev. August 2019)

Department of the Treasury Internal Revenue Service

United States Estate (and Generation-Skipping Transfer)

Tax Return

Estate of a citizen or resident of the United States (see instructions). To be filed for decedents dying after December 31, 2018.

Go to www.irs.gov/Form706 for instructions and the latest information.

OMB No. 1545-0015

Part 1—Decedent and Executor

Part 2—Tax Computation

Decedent’s first name and middle initial (and maiden name, if any)

1b Decedent’s last name

2 Decedent’s social security no.

City, town, or post office; county; state or province; country; and ZIP

3b Year domicile established

4 Date of birth

5 Date of death

or foreign postal code

6b Executor’s address (number and street including apartment or suite no.; city, town,

or post office; state or province; country; and ZIP or foreign postal code) and

phone no.

Name of executor (see instructions)

Executor’s social security number (see instructions)

Phone no.

If there are multiple executors, check here

and attach a list showing the names, addresses, telephone numbers, and SSNs of the additional executors.

Name and location of court where will was probated or estate administered

7b Case number

If decedent died testate, check here

and attach a certified copy of the will.

9 If you extended the time to file this Form 706, check here

If Schedule R-1 is attached, check here

If you are estimating the value of assets included in the gross estate on line 1 pursuant to the special rule of Reg. section 20.2010-2(a)(7)(ii), check here

Total gross estate less exclusion (from Part 5—Recapitulation, item 13)

Tentative total allowable deductions (from Part 5—Recapitulation, item 24)

Tentative taxable estate (subtract line 2 from line 1)

State death tax deduction

Taxable estate (subtract line 3b from line 3a)

Adjusted taxable gifts (see instructions)

Add lines 3c and 4

Tentative tax on the amount on line 5 from Table A in the instructions

Total gift tax paid or payable (see instructions)

Gross estate tax (subtract line 7 from line 6)

Basic exclusion amount . . . .

. . . . . . .

. . . .

bDeceased spousal unused exclusion (DSUE) amount from predeceased spouse(s),

	if any (from Section D, Part 6—Portability of Deceased Spousal Unused Exclusion)		9b
c	Restored exclusion amount (see instructions)		9c
d	Applicable exclusion amount (add lines 9a, 9b, and 9c)	. . . . .	9d

eApplicable credit amount (tentative tax on the amount in line 9d from

Table A in the instructions)

10Adjustment to applicable credit amount (May not exceed $6,000. See

	instructions.)		10
11	Allowable applicable credit amount (subtract line 10 from line 9e)	. .	. . . . . . . . .	11
12	Subtract line 11 from line 8 (but do not enter less than zero) . . . .		. . . . . . . . .	12
13	Credit for foreign death taxes (from Schedule P). (Attach Form(s) 706-CE.)		13
14	Credit for tax on prior transfers (from Schedule Q)		14
15	Total credits (add lines 13 and 14)		. . . . . . . . .	15
16	Net estate tax (subtract line 15 from line 12)		. . . . . . . . .	16
17	Generation-skipping transfer (GST) taxes payable (from Schedule R, Part 2, line 10)			17
18	Total transfer taxes (add lines 16 and 17)		. . . . . . . . .	18
19	Prior payments (explain in an attached statement)		. . . . . . . . .	19
20	Balance due (or overpayment) (subtract line 19 from line 18) . . . .		. . . . . . . . .	20

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than the executor) is based on all information of which preparer has any knowledge.

Sign	FF		Signature of executor
Sign			Signature of executor
Here
			Signature of executor
		Print/Type preparer’s name		Preparer’s signature
Paid		Print/Type preparer’s name		Preparer’s signature
Paid
Preparer		Firm’s name
Preparer
Use Only
Use Only		Firm’s address
		Firm’s address

For Privacy Act and Paperwork Reduction Act Notice, see instructions.

Date

Cat. No. 20548R

Date

Check	if	PTIN
Check	if
self-employed

Firm’s EIN

Phone no.

Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of:

Part 3—Elections by the Executor

Note: For information on electing portability of the decedent’s DSUE amount, including how to opt out of the election, see Part 6—
	Portability of Deceased Spousal Unused Exclusion.
Note: Some of the following elections may require the posting of bonds or liens.			Yes	No
Please check “Yes” or “No” for each question. See instructions.
1	Do you elect alternate valuation?	1
2	Do you elect special-use valuation? If “Yes,” you must complete and attach Schedule A-1	2
3	Do you elect to pay the taxes in installments as described in section 6166?
	If “Yes,” you must attach the additional information described in the instructions.
	Note: By electing section 6166 installment payments, you may be required to provide security for estate tax deferred
	under section 6166 and interest in the form of a surety bond or a section 6324A lien.	3
4	Do you elect to postpone the part of the taxes due to a reversionary or remainder interest as described in section 6163? .	4

Part 4—General Information

Note: Please attach the necessary supplemental documents. You must attach the death certificate. See instructions.

Authorization to receive confidential tax information under Reg. section 601.504(b)(2)(i); to act as the estate’s representative before the IRS; and to make written or oral presentations on behalf of the estate:

Name of representative (print or type)

State

Address (number, street, and room or suite no., city, state, and ZIP code)

I declare that I am the

attorney/

certified public accountant/

enrolled agent (check the applicable box) for the executor. I am not under

suspension or disbarment from practice before the Internal Revenue Service and am qualified to practice in the state shown above.

Signature

CAF number

Date

Telephone number

1Death certificate number and issuing authority (attach a copy of the death certificate to this return).

2	Decedent’s business or occupation. If retired, check here	and state decedent’s former business or occupation.

3a	Marital status of the decedent at time of death:

Married

Widow/widower

Single

Legally separated

Divorced

3b For all prior marriages, list the name and SSN of the former spouse, the date the marriage ended, and whether the marriage ended by annulment, divorce, or death. Attach additional statements of the same size if necessary.

4a Surviving spouse’s name

4b Social security number

4c Amount received (see instructions)

5Individuals (other than the surviving spouse), trusts, or other estates who receive benefits from the estate (do not include charitable beneficiaries shown in Schedule O) (see instructions).

Name of individual, trust, or estate receiving $5,000 or more	Identifying number	Relationship to decedent	Amount (see instructions)

All unascertainable beneficiaries and those who receive less than $5,000 . . . . . . . . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If you answer “Yes” to any of the following questions, you must attach additional information as described.			Yes	No
6	Is the estate filing a protective claim for refund?
	If “Yes,” complete and attach two copies of Schedule PC for each claim.
7	Does the gross estate contain any section 2044 property (qualified terminable interest property (QTIP) from a prior gift or estate)?
	See instructions
8a	Have federal gift tax returns ever been filed?
	If “Yes,” attach copies of the returns, if available, and furnish the following information.
b	Period(s) covered	c Internal Revenue office(s) where filed

9a	Was there any insurance on the decedent’s life that is not included on the return as part of the gross estate?
b	Did the decedent own any insurance on the life of another that is not included in the gross estate?

Page 2

Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of:

Part 4—General Information (continued)

If you answer “Yes” to any of the following questions, you must attach additional information as described.

Yes No

10Did the decedent at the time of death own any property as a joint tenant with right of survivorship in which (a) one or more of the other joint tenants was someone other than the decedent’s spouse, and (b) less than the full value of the property is included on

the return as part of the gross estate? If “Yes,” you must complete and attach Schedule E . . . . . . . . . . .

11a Did the decedent, at the time of death, own any interest in a partnership (for example, a family limited partnership), an unincorporated business, or a limited liability company; or own any stock in an inactive or closely held corporation? . . . .

bIf “Yes,” was the value of any interest owned (from above) discounted on this estate tax return? If “Yes,” see the instructions on

reporting the total accumulated or effective discounts taken on Schedule F or G . . . . . . . . . . . . . .

12Did the decedent make any transfer described in sections 2035, 2036, 2037, or 2038? See instructions. If “Yes,” you must

complete and attach Schedule G . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13a Were there in existence at the time of the decedent’s death any trusts created by the decedent during his or her lifetime? . .

bWere there in existence at the time of the decedent’s death any trusts not created by the decedent under which the decedent

possessed any power, beneficial interest, or trusteeship? . . . . . . . . . . . . . . . . . . . . .

c Was the decedent receiving income from a trust created after October 22, 1986, by a parent or grandparent? . . . . . .

If “Yes,” was there a GST taxable termination (under section 2612) on the death of the decedent? . . . . . . . . .

dIf there was a GST taxable termination (under section 2612), attach a statement to explain. Provide a copy of the trust or will creating the trust, and give the name, address, and phone number of the current trustee(s).

eDid the decedent at any time during his or her lifetime transfer or sell an interest in a partnership, limited liability company, or

closely held corporation to a trust described in line 13a or 13b? . . . . . . . . . . . . . . . . . . .

If “Yes,” provide the EIN for this transferred/sold item.

14Did the decedent ever possess, exercise, or release any general power of appointment? If “Yes,” you must complete and attach Schedule H

15Did the decedent have an interest in or a signature or other authority over a financial account in a foreign country, such as a bank

account, securities account, or other financial account? . . . . . . . . . . . . . . . . . . . . .

16Was the decedent, immediately before death, receiving an annuity described in the “General” paragraph of the instructions for

Schedule I or a private annuity? If “Yes,” you must complete and attach Schedule I . . . . . . . . . . . . .

17Was the decedent ever the beneficiary of a trust for which a deduction was claimed by the estate of a predeceased spouse

under section 2056(b)(7) and which is not reported on this return? If “Yes,” attach an explanation . . . . . . . . .

Part 5—Recapitulation. Note: If estimating the value of one or more assets pursuant to the special rule of Reg. section 20.2010-2(a)(7)(ii), enter on both lines 10 and 23 the amount noted in the instructions for the corresponding range of values. See instructions for details.

Item no.	Gross estate				Alternate value		Value at date of death

1	Schedule A—Real Estate			1
2	Schedule B—Stocks and Bonds			2
3	Schedule C—Mortgages, Notes, and Cash			3
4	Schedule D—Insurance on the Decedent’s Life (attach Form(s) 712) . . . .			4
5	Schedule E—Jointly Owned Property (attach Form(s) 712 for life insurance) .			5
6	Schedule F—Other Miscellaneous Property (attach Form(s) 712 for life insurance)			6
7	Schedule G—Transfers During Decedent’s Life (att. Form(s) 712 for life insurance)			7
8	Schedule H—Powers of Appointment	. . . . . . . . . . . .		8
9	Schedule I—Annuities			9
10	Estimated value of assets subject to the special rule of Reg. section 20.2010-2(a)(7)(ii)			10
11	Total gross estate (add items 1 through 10)			11
12	Schedule U—Qualified Conservation Easement Exclusion		. . . . . .	12
13	Total gross estate less exclusion (subtract item 12 from item 11). Enter here and
	on line 1 of Part 2—Tax Computation			13

Item no.		Deductions					Amount

14	Schedule J—Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims . .					14
15	Schedule K—Debts of the Decedent			. . . . . . .		15
16	Schedule K—Mortgages and Liens			. . . . . . .		16
17	Total of items 14 through 16			. . . . . . .		17
18	Allowable amount of deductions from item 17 (see the instructions for item 18 of the Recapitulation) . .					18
19	Schedule L—Net Losses During Administration			. . . . . . .		19
20	Schedule L—Expenses Incurred in Administering Property Not Subject to Claims .			. . . . . . .		20
21	Schedule M—Bequests, etc., to Surviving Spouse			. . . . . . .		21
22	Schedule O—Charitable, Public, and Similar Gifts and Bequests			. . . . . . .		22
23	Estimated value of deductible assets subject to the special rule of Reg. section 20.2010-2(a)(7)(ii) . . .					23
24	Tentative total allowable deductions (add items 18 through 23). Enter here and on line 2 of the Tax Computation					24

Page 3

Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of:

Part 6—Portability of Deceased Spousal Unused Exclusion (DSUE)

Portability Election

A decedent with a surviving spouse elects portability of the DSUE amount, if any, by completing and timely filing this return. No further action is required to elect portability of the DSUE amount to allow the surviving spouse to use the decedent’s DSUE amount.

Section A. Opting Out of Portability

The estate of a decedent with a surviving spouse may opt out of electing portability of the DSUE amount. Check here and do not complete Sections B and C of Part 6 only if the estate opts NOT to elect portability of the DSUE amount.

Section B. Qualified Domestic Trust (QDOT)	Yes	No
Are any assets of the estate being transferred to a QDOT?

If “Yes,” the DSUE amount portable to a surviving spouse (calculated in Section C, below) is preliminary and shall be redetermined at the time of the final distribution or other taxable event imposing estate tax under section 2056A. See instructions for more details.

Section C. DSUE Amount Portable to the Surviving Spouse (To be completed by the estate of a decedent making a portability election.) Complete the following calculation to determine the DSUE amount that can be transferred to the surviving spouse.

1	Enter the amount from line 9d, Part 2—Tax Computation	1
2	Reserved	2
3	Enter the value of the cumulative lifetime gifts on which tax was paid or payable. See instructions . . .	3
4	Add lines 1 and 3	4
5	Enter amount from line 10, Part 2—Tax Computation	5
6	Divide amount on line 5 by 40% (0.40) (do not enter less than zero)	6
7	Subtract line 6 from line 4	7
8	Enter the amount from line 5, Part 2—Tax Computation	8
9	Subtract line 8 from line 7 (do not enter less than zero)	9
10	DSUE amount portable to surviving spouse (Enter lesser of line 9 or line 9a, Part 2—Tax Computation) . .	10

Section D. DSUE Amount Received From Predeceased Spouse(s) (To be completed by the estate of a deceased surviving spouse with DSUE amount from predeceased spouse(s))

Provide the following information to determine the DSUE amount received from deceased spouses.

A	B	C		D	E	F	G
Name of Deceased Spouse	Date of Death	Portability		If “Yes,” DSUE	DSUE Amount	Year of Form 709	Remaining DSUE
(dates of death after	(enter as mm/dd/yy)	Election		Amount Received	Applied by	Reporting Use of DSUE	Amount, if any
December 31, 2010, only)		Made?		From Spouse	Decedent to	Amount Listed in col. E	(subtract col. E
					Lifetime Gifts		from col. D)

		Yes	No

Part 1 — DSUE RECEIVED FROM LAST DECEASED SPOUSE

Part 2 — DSUE RECEIVED FROM OTHER PREDECEASED SPOUSE(S) AND USED BY DECEDENT










Total (for all DSUE amounts from predeceased spouse(s) applied) . .
Add the amount from Part 1, column D, and the total from Part 2, column E. Enter the result on line 9b, Part 2—Tax
Computation

Page 4

Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

SCHEDULE A—Real Estate

•For jointly owned property that must be disclosed on Schedule E, see instructions.

•Real estate that is part of a sole proprietorship should be shown on Schedule F.

•Real estate that is included in the gross estate under sections 2035, 2036, 2037, or 2038 should be shown on Schedule G.

•Real estate that is included in the gross estate under section 2041 should be shown on Schedule H.

•If you elect section 2032A valuation, you must complete Schedule A and Schedule A-1.

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

Item

number

Description

Alternate

valuation date

Alternate value

Value at date of death

Total from continuation schedules or additional statements attached to this schedule .

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 1.) . . . . . . . . . .

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule A—Page 5

Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

SCHEDULE A-1—Section 2032A Valuation

Part 1. Type of Election (Before making an election, see the checklist in the instructions):

Protective election (Reg. section 20.2032A-8(b)). Complete Part 2, line 1, and column A of lines 3 and 4. See instructions.

Regular election. Complete all of Part 2 (including line 11, if applicable) and Part 3. See instructions.

Before completing Schedule A-1, see the instructions for the information and documents that must be included to make a valid election.

The election is not valid unless the agreement (that is, Part 3. Agreement to Special Valuation Under Section 2032A):

•Is signed by each qualified heir with an interest in the specially valued property, and

•Is attached to this return when it is filed.

Part 2. Notice of Election (Reg. section 20.2032A-8(a)(3))

Note: All real property entered on lines 2 and 3 must also be entered on Schedules A, E, F, G, or H, as applicable.

1 Qualified use—check one	Farm used for farming, or
	Trade or business other than farming

2Real property used in a qualified use, passing to qualified heirs, and to be specially valued on this Form 706.

Schedule and item number

from Form 706

Full value

(without section 2032A(b)(3)(B)

adjustment)

Adjusted value

(with section 2032A(b)(3)(B)

adjustment)

Value based on qualified use (without section 2032A(b)(3)(B) adjustment)

Totals . . . . . . . . . .

Attach a legal description of all property listed on line 2.

Attach copies of appraisals showing the column B values for all property listed on line 2.

3Real property used in a qualified use, passing to qualified heirs, but not specially valued on this Form 706.

A	B	C	D
Schedule and item number	Full value	Adjusted value	Value based on qualified use
from Form 706	(without section 2032A(b)(3)(B)	(with section 2032A(b)(3)(B)	(without section 2032A(b)(3)(B)
	adjustment)	adjustment)	adjustment)

Totals . . . . . . . . . .

If you checked “Regular election,” you must attach copies of appraisals showing the column B values for all property listed on line 3.

(continued on next page)

Schedule A-1—Page 6

Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

4Personal property used in a qualified use and passing to qualified heirs.

Schedule and item

number from Form 706

Adjusted value (with section 2032A(b)(3)(B) adjustment)

A (continued)	B (continued)
Schedule and item	Adjusted value (with section
number from Form 706	2032A(b)(3)(B) adjustment)

“Subtotal” from col. B, below left

Subtotal . . . . . . .

Total adjusted value . . .

5Enter the value of the total gross estate as adjusted under section 2032A(b)(3)(A).

6Attach a description of the method used to determine the special value based on qualified use.

7 Did the decedent and/or a member of his or her family own all property listed on line 2 for at least 5 of the 8 years Yes No immediately preceding the date of the decedent’s death? . . . . . . . . . . . . . . . . . . .

8Were there any periods during the 8-year period preceding the date of the decedent’s death during which the decedent or a member of his or her family:

a	Did not own the property listed on line 2?
b	Did not use the property listed on line 2 in a qualified use?

cDid not materially participate in the operation of the farm or other business within the meaning of section 2032A(e)(6)? If you answered “Yes” to any of the above, attach a statement listing the periods. If applicable, describe whether

the exceptions of sections 2032A(b)(4) or (5) are met.

9Attach affidavits describing the activities constituting material participation and the identity and relationship to the

decedent of the material participants.

10Persons holding interests. Enter the requested information for each party who received any interest in the specially valued property. (Each of the qualified heirs receiving an interest in the property must sign the agreement, to be found on Part 3 of this Schedule A-1, and the agreement must be filed with this return.)

Name

Address

Identifying number	Relationship to decedent	Fair market value	Special-use value

You must attach a computation of the GST tax savings attributable to direct skips for each person listed above who is a skip person. See instructions.

11 Woodlands election. Check here

if you wish to make a Woodlands election as described in section 2032A(e)(13). Enter

the schedule and item numbers from Form 706 of the property for which you are making this election

Attach a statement explaining why you are entitled to make this election. The IRS may issue regulations that require more information to substantiate this election. You will be notified by the IRS if you must supply further information.

Schedule A-1—Page 7

Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of:

Part 3. Agreement to Special Valuation Under Section 2032A

There cannot be a valid election unless:

• The agreement is executed by each one of the qualified heirs, and

• The agreement is included with the estate tax return when the estate tax return is filed. We (list all qualified heirs)

			,
being all the qualified heirs and (list all other persons having an interest in the property required to sign this agreement)

			,
being all other parties having interests in the property, which is qualified real property and which is valued under section 2032A, do
hereby approve of the election made by			,
Executor/Administrator of the estate of			,
pursuant to section 2032A to value said property on the basis of the qualified use to which the property is devoted and do hereby
enter into this agreement pursuant to section 2032A(d).

The undersigned agree and consent to the application of subsection (c) of section 2032A with respect to all the property described on Form 706, Schedule A-1, Part 2, line 2, attached to this agreement. More specifically, the undersigned heirs expressly agree and consent to personal liability under subsection (c) of 2032A for the additional estate and GST taxes imposed by that subsection with respect to their respective interests in the above-described property in the event of certain early dispositions of the property or early cessation of the qualified use of the property. It is understood that if a qualified heir disposes of any interest in qualified real property to any member of his or her family, such member may thereafter be treated as the qualified heir with respect to such interest upon filing a Form 706-A, United States Additional Estate Tax Return, and a new agreement.

The undersigned interested parties who are not qualified heirs consent to the collection of any additional estate and GST taxes imposed under section 2032A(c) from the specially valued property.

If there is a disposition of any interest which passes, or has passed to him or her, or if there is a cessation of the qualified use of any specially valued property which passes or passed to him or her, each of the undersigned heirs agrees to file a Form 706-A, and pay any additional estate and GST taxes due within 6 months of the disposition or cessation.

It is understood by all interested parties that this agreement is a condition precedent to the election of special-use valuation under section 2032A and must be executed by every interested party even though that person may not have received the estate (or GST) tax benefits or be in possession of such property.

Each of the undersigned understands that by making this election, a lien will be created and recorded pursuant to section 6324B on the property referred to in this agreement for the adjusted tax differences with respect to the estate as defined in section 2032A(c)(2)

(C).

As the interested parties, the undersigned designate the following individual as their agent for all dealings with the Internal Revenue Service concerning the continued qualification of the specially valued property under section 2032A and on all issues regarding the special lien under section 6324B. The agent is authorized to act for the parties with respect to all dealings with the Internal Revenue Service on matters affecting the qualified real property described earlier. This includes the authorization:

•To receive confidential information on all matters relating to continued qualification under section 2032A of the specially valued real property and on all matters relating to the special lien arising under section 6324B;

•To furnish the Internal Revenue Service with any requested information concerning the property;

•To notify the Internal Revenue Service of any disposition or cessation of qualified use of any part of the property;

•To receive, but not to endorse and collect, checks in payment of any refund of Internal Revenue taxes, penalties, or interest;

•To execute waivers (including offers of waivers) of restrictions on assessment or collection of deficiencies in tax and waivers of notice of disallowance of a claim for credit or refund; and

•To execute closing agreements under section 7121.

(continued on next page)

Schedule A-1—Page 8

Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

Part 3. Agreement to Special Valuation Under Section 2032A (continued)

• Other acts (specify)

By signing this agreement, the agent agrees to provide the Internal Revenue Service with any requested information concerning this property and to notify the Internal Revenue Service of any disposition or cessation of the qualified use of any part of this property.

Name of Agent

Signature

Address

The property to which this agreement relates is listed in Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and in the Notice of Election, along with its fair market value according to section 2031 and its special-use value according to section 2032A. The name, address, social security number, and interest (including the value) of each of the undersigned in this property are as set forth in the attached Notice of Election.

IN WITNESS WHEREOF, the undersigned have hereunto set their hands at				,
this	day of	.
SIGNATURES OF EACH OF THE QUALIFIED HEIRS:

Signature of qualified heir			Signature of qualified heir

Signature of qualified heir			Signature of qualified heir

Signature of qualified heir			Signature of qualified heir

Signature of qualified heir			Signature of qualified heir

Signature of qualified heir			Signature of qualified heir

Signature of qualified heir			Signature of qualified heir

Signatures of other interested parties

Schedule A-1—Page 9

Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

SCHEDULE B—Stocks and Bonds

(For jointly owned property that must be disclosed on Schedule E, see instructions.)

Item	Description, including face amount of bonds or number of shares	Unit value	Alternate	Alternate value	Value at
Item	and par value for identification. Give CUSIP number.		Alternate		Value at
number	and par value for identification. Give CUSIP number.		valuation date		date of death
number	If trust, partnership, or closely held entity, give EIN.		valuation date		date of death
	If trust, partnership, or closely held entity, give EIN.
	CUSIP number or EIN,
	where applicable

Total from continuation schedules (or additional statements) attached to this schedule .

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 2.) . . . . . . . . . .

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule B—Page 10

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Document Specifications

Fact Name	Description
Purpose	The IRS Form 706 is used for reporting estate tax liability for individuals who have passed away.
Filing Requirement	Form 706 must be filed by the executor of an estate if the gross estate exceeds $11.7 million for 2021, and this amount is subject to annual adjustments.
Filing Deadline	The form is due nine months after the date of the decedent's death. Extensions may be granted under certain circumstances.
Components	The form includes sections for reporting assets, deductions, debts, and estate tax calculations.
State Impact	Some states impose their own estate taxes, and it is important to check state requirements which may differ from federal rules.
Special Exemptions	Certain assets such as life insurance policies and retirement accounts may have specific reporting conditions on Form 706.
Audit Risk	Filing Form 706 may trigger an IRS audit, particularly if the reported values are inconsistent or significantly undervalued.
Professional Assistance	Many executors seek help from tax professionals or legal advisors to ensure accurate completion of Form 706.

Steps to Filling Out IRS 706

Completing the IRS Form 706 is an important step in managing estate taxes efficiently. Following these steps will help ensure that all necessary information is gathered and presented correctly.

Obtain the IRS Form 706. You can download it from the IRS website or request a paper copy.
Review the instructions that accompany the form. Understanding the requirements is crucial before you begin filling it out.
Gather essential documentation, including information about the deceased's assets, liabilities, and any prior gift tax filings.
Fill out the decedent's details at the top of the form, including the name, address, and date of death.
Enter information about the executor or personal representative of the estate. Include their contact information.
Provide details about the assets owned by the decedent. This includes real estate, bank accounts, investments, and personal property.
Calculate the gross estate value using the appropriate valuation methods. Document this carefully.
List any debts and expenses that should be deducted from the gross estate to arrive at the taxable estate.
Complete the sections pertaining to marital deductions, transfers, and any prior gifts. Ensure that all sections are filled out accurately.
Review each completed section for accuracy. Double-check numbers and ensure all necessary signatures are included.
Determine the amount of estate tax owed, if applicable, and calculate any payments due.
Sign and date the form. It must be submitted by the designated deadline.

Once the form is complete, it is essential to file it with the IRS by the due date. Be sure to keep a copy for your records and consider consulting a tax professional for further guidance.

More About IRS 706

What is the IRS 706 form used for?

The IRS 706 form, officially known as the United States Estate (and Generation-Skipping Transfer) Tax Return, is used to report the estate tax and any generation-skipping transfer taxes owed upon the death of an individual. This form is necessary when the total value of the deceased's estate exceeds a certain threshold, which can change yearly. Typically, estates that meet this threshold must file this form to determine the tax liability for the estate before distributions are made to beneficiaries.

Who is required to file the IRS 706 form?

The requirement to file the IRS 706 form depends on the value of the gross estate at the time of death. If the value is more than the established exemption limit—this amount adjusts annually—you are generally required to file the form. It's important to evaluate all assets, including cash, property, and investments, as they all count toward the gross estate. Executors or personal representatives should take note of these requirements to avoid potential penalties or complications during the estate settlement process.

When is the IRS 706 form due?

The IRS 706 form is typically due nine months after the date of death of the individual whose estate is being taxed. However, there is an option to apply for a six-month extension. Keep in mind that even if you request an extension, any taxes owed must be paid by the original due date to avoid interest and penalties. Proper timing is crucial, so ensure that all documentation and valuations are accurate and complete before submission.

What information do I need to complete the IRS 706 form?

When preparing the IRS 706 form, you will need detailed information about the estate's assets and liabilities. This includes documentation of all real estate, bank accounts, stocks, retirement accounts, and other significant financial holdings as of the date of death. Additionally, you must include valid appraisals, debts, funeral expenses, and any lifetime gifts made by the decedent. Organizing this information comprehensively will facilitate a smoother filing process and help ensure compliance with IRS regulations.

Common mistakes

Incorrect Valuation of Assets: Many individuals fail to accurately assess the value of the assets included in the estate. This can lead to potential disputes with the IRS and may result in underreporting or overreporting.
Failing to Include All Required Information: It's crucial to provide complete details for all assets and liabilities. Omitting items can delay processing and may lead to penalties.
Not Taking Advantage of Deductions: Some taxpayers overlook allowable deductions, such as debts and estate administration expenses. Missing these deductions can increase the taxable value of the estate unnecessarily.
Improperly Completing Schedule A: This section requires specific details on real estate, stocks, and other assets. Mistakes here can lead to significant errors in estate tax calculations.
Missing Deadlines: The IRS requires the 706 form to be filed within nine months of the decedent’s date of death. Late submissions can result in severe penalties.
Choosing the Wrong Filing Method: Deciding between a paper return and electronic filing is important. Some may not realize that electronic filing is more efficient and can help avoid mistakes.

Documents used along the form

The IRS Form 706, also known as the United States Estate (and Generation-Skipping Transfer) Tax Return, is an important document used to report the value of a deceased person's estate. However, various other forms and documents often accompany this form to ensure a comprehensive understanding and proper reporting of the estate's details. Below is a list of documents that can provide additional context or required information when filing Form 706.

Form 709: This is the United States Gift (and Generation-Skipping Transfer) Tax Return. It is used to report any gifts made during the taxpayer's lifetime that may affect the taxability of the estate.
Form 706-CE: The Certificate of Payment of Foreign Death Tax form provides proof that estate taxes have been paid to foreign jurisdictions. This can help beneficiaries avoid double taxation on the same assets.
Form 1040: The individual income tax return captures income earned by the decedent up until the date of death. This helps determine any outstanding tax obligations the estate may have.
Form 8971: This is the Information Regarding Beneficiaries Acquiring Property from a Decedent form. It must be filed to provide the IRS with the necessary details about beneficiaries and the value of the assets they are inheriting.
Schedule A (IRS Form 706): This schedule is used to list the assets owned by the decedent at the time of death. It includes real estate, financial accounts, and personal property, which helps establish the value of the estate.
Schedule B (IRS Form 706): This schedule specifically addresses the value of stocks and bonds owned by the decedent, providing clearer insights into the estate's investment assets.
Schedule M (IRS Form 706): This schedule is dedicated to the marital deduction. It identifies the assets passing from the decedent to a surviving spouse, which can reduce the overall taxable estate amount.

When preparing to file Form 706, including these accompanying documents can facilitate the process and ensure compliance with IRS regulations. Proper documentation contributes to transparency and accuracy, ultimately benefiting the estate and its beneficiaries.

Similar forms

The IRS Form 706 is similar to Form 1040 in that both are essential documents for tax purposes, providing detailed information about an individual’s financial situation. Form 1040 is the standard income tax form that U.S. citizens use to report their income, claim deductions, and calculate their tax liability. While Form 706 specifically addresses estate and gift taxes, both forms aim to ensure accurate reporting and compliance with federal tax regulations.

Another document similar to Form 706 is Form 709, which is the United States Gift (and Generation-Skipping Transfer) Tax Return. This form is used to report gifts that exceed the annual exclusions set by the IRS. Just like Form 706, Form 709 assists in tracking the value of assets transferred and ensures that the appropriate gift tax is calculated. The relationship between the two forms is significant, as gifts can affect the estate's overall tax liability.

Form 1041, the U.S. Income Tax Return for Estates and Trusts, shares similarities with Form 706 in its focus on the financial activities of an estate. This form is used to report the income earned by an estate during its administration period. Both forms require a thorough understanding of the financial status of the estate; however, Form 1041 is specifically for income tax, while Form 706 targets estate tax calculations.

Form 990, used by tax-exempt organizations, bears resemblance to Form 706 in its extensive reporting requirements. While Form 990 focuses on the financial and operational activities of nonprofits, both documents ensure transparency and compliance with tax laws. Each form asks for detailed financial information to maintain accountability and assist with the accurate collection of taxes owed or exemptions available.

Similar to Form 706, Form 8822-B is essential for entities undergoing changes in ownership or control. This form notifies the IRS of changes in the responsible parties for an estate. While it does not directly calculate taxes like Form 706 does for estates, it ensures that the proper individuals are accountable, highlighting the importance of accurate information for tax purposes.

Form 8606, the Nondeductible IRAs form, also shares common ground with Form 706 in that both deal with asset reporting for tax calculations. Form 8606 is used to report any contributions to traditional IRAs that are not tax-deductible, ensuring the IRS can accurately track individuals’ retirement savings. Both forms are integral parts of the overall tax strategy for individuals looking to manage their estates and financial futures intelligently.

Lastly, Form 941 serves as a connection to the employment tax reporting aspect of business ownership. While it deals with payroll taxes paid on employee wages, it reflects fiscal responsibilities similar to how Form 706 reflects estate tax responsibilities. Each form emphasizes the importance of accurate reporting and timely payment of taxes, as both directly impact the financial health of the taxpayer.

Dos and Don'ts

Filling out the IRS 706 form requires attention to detail and careful consideration. Here are some important dos and don'ts to guide you through the process.

Do read the instructions carefully before starting. Understanding the requirements will streamline your completion of the form.
Do gather all necessary documents and information ahead of time. This includes records of all assets, debts, and valuations.
Do consult a tax professional if you have any questions. It’s better to seek help than to guess and make mistakes.
Do double-check your calculations. Accurate figures are crucial to avoid potential disputes with the IRS.

Don't rush to submit the form without a thorough review. Errors can result in penalties or delays.
Don't ignore the deadlines. Timely submission is essential to avoid interest and penalties.
Don't overlook any exemptions or deductions that may apply to your situation. They could significantly affect your total tax liability.
Don't assume that the IRS will reach out to correct your mistakes. Take responsibility for ensuring everything is accurate.

Misconceptions

The IRS Form 706 is an important document used for reporting the estate tax. However, several misconceptions surround it, leading to confusion among taxpayers. Below is a list of common myths and clarifications to help you understand this form better.

Only the wealthy need to file Form 706. Many believe that only individuals with substantial estates must complete this form. However, even estates valued below the exemption limit may require the filing of Form 706 depending on specific circumstances.
Form 706 must be filed for every estate. Not all estates require this form. If the combined value of the taxable estate and certain gifts exceeds the estate tax exemption limit, then Form 706 must be filed.
Form 706 is due immediately upon death. While it is generally due nine months after the date of death, extensions are available. Executors can file for a six-month extension if needed.
Filing Form 706 is optional. For certain estates, it's not just optional but a legal requirement. Proper filing ensures compliance with tax regulations.
Only assets owned at death are included in Form 706. This form requires listing all assets, including those transferred prior to death that may still impact the estate tax calculation.
Form 706 is overly complex and requires a tax professional. While it can be complicated, many individuals can complete it on their own with careful attention to detail and available resources.
Filing Form 706 delays estate distribution. Some estates may experience delays due to issues unrelated to Form 706. Proper filing may actually help expedite the process.
Filing Form 706 guarantees a tax bill. Not all filings result in owing taxes. The estate may qualify for deductions or exemptions that reduce or eliminate liability.
There are no penalties for late filing. Late filings may incur penalties and interest on any taxes owed. Timeliness can mitigate potential costs.

Understanding these misconceptions can help you navigate the complexities of estate tax and ensure compliance with IRS requirements. If there are uncertainties, seeking guidance is always advisable.

Key takeaways

The IRS 706 form is used for estate tax and is necessary for estates exceeding a certain value threshold.
Ensure you are aware of the current exemption limit, which may change annually based on legislation.
All required information should be accurately reported, including assets, debts, and deductions.
A complete inventory of the deceased's property must be compiled to determine the total value of the estate.
Timing is crucial; the form is typically due nine months after the date of death.
Utilize professional assistance if you are unsure about specific valuations or deductions.
Poorly completed forms can lead to delays and penalties, so review the final submission thoroughly before filing.
Filing an extension is possible, but it requires timely action to avoid late fees.