Form 706-GS(D)
Forms

Form 706-GS(D): Generation-Skipping Transfer Tax Return for Distributions

Form 706-GS(D) is used by skip persons who receive a taxable distribution from a trust to calculate and report the GST tax due on the distribution. Who is responsible for filing the form and when they must do so is outlined here.

What is Form 706-GS(D)?

Form 706-GS(D) is used by individuals to calculate and report the GST tax due on distributions from a trust. Those who receive a taxable distribution from a trust must file Form 706-GS(D), and those with an inclusion ratio of zero listed on Part II, Line 3, Column D are not required to file. Form 706-GS(D) is typically due on or after January 1 and before April 15 of the year following the calendar year in which the distributions were made. However, an extension of time can be requested until October 15 using Form 7004. Penalties and interest are applied for late filing, underpayment, and valuation understatement. A return preparer may be subject to additional penalties based on an unreasonable or willful position. Both the recipient and a paid preparer must sign the form, and the latter must provide a copy of the form to the recipient.

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IRS Form 706-GS(D) – Who Needs to Fill It Out?

Form 706-GS(D) must be filed by any skip person who receives a taxable distribution from a trust. To get an extension, file Form 7004 on or before the regular due date. After June 30, 2019, use the Kansas City address, and include any PDS written proof of mailing. Penalties and interest may apply if due dates are not met, and preparers must sign the form and provide a copy to the distributee.

Step-by-Step: Form 706-GS(D) Instructions For Filling Out the Document

Filing Form 706-GS(D) is necessary for any skip person who receives a taxable distribution from a trust. The form should be filed on or after January 1 but not later than April 15 of the year following the calendar year when the distributions were made. If you need more time to file, you can use Form 7004 to automatically request a 6-month extension. Private delivery services (PDSs) may be used to meet the “timely mailing as timely filing/paying” rule. In addition, penalties and interest may be applied for late filing or late payment unless reasonable cause for the delay can be shown. The return preparer must sign Form 706-GS(D) and provide a copy to the distributee.

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Below, we present a table that will help you understand how to fill out Form 706-GS(D).

Information Required for Form 706-GS(D) Details
Purpose File if you receive a taxable distribution from a trust
Filing Deadline File on or after January 1 but not later than April 15 of the following year
Extensions Use Form 7004 for a 6-month extension
Penalties Penalties and interest may apply for late filing or payment
Return Preparer Return preparer must sign and provide a copy to the distributee
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Do You Need to File Form 706-GS(D) Each Year?

In general, any skip person who receives a taxable distribution from a trust must file Form 706-GS(D). The GST tax on distributions is figured and reported on a calendar year basis, regardless of your income tax accounting period. Generally, you must file Form 706-GS(D) on or after January 1 but not later than April 15 of the year following the calendar year when the distributions were made. You can request an automatic 6-month extension of time to file by filing Form 7004, and must file it prior to the regular due date of the form. If you are required to file Form 706-GS(D), and it is filed late, you may be subjected to penalties and interest unless there is reasonable cause for the delay.

Download the official IRS Form 706-GS(D) PDF

On the official IRS website, you will find a link to download Form 706-GS(D). However, to make it easier for you, we are providing the link in our article, which comes directly from the official IRS.gov website! Click to download: Form 706-GS(D)

Sources:

https://www.irs.gov/forms-pubs/about-form-706-gs-d

https://www.irs.gov/instructions/i706gsd

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