Form 706-NA
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Form 706-NA: United States Estate (and Generation-Skipping Transfer) Tax Return

Form 706-NA is an Internal Revenue Service form used to compute the estate and generation-skipping transfer (GST) tax liability for nonresident not a citizen (NRNC) decedents. This article covers information related to filing the form, including who must file, when it must be filed, how to file, and what penalties and deductions apply.

What is Form 706-NA?

Form 706-NA is a form used by executors of the estate of a deceased nonresident not a citizen of the United States to calculate their estate tax and generation-skipping transfer tax (GST). It must be submitted within 9 months after the date of death, with a possible 6-month extension if the executor is out of the country. Depending on the decedent’s date of death, applicable taxes, residency status, and compliance with certain procedures and regulations, the executor may be required to fill out additional IRS forms and provide documentation, such as a certified copy of the will or court order designating the executor(s). Upon filing, the executor may request an estate tax closing letter or an account transcript, both of which may provide information about the acceptance of Form 706-NA and the completion of an examination.

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IRS Form 706-NA – Who Needs to Fill It Out?

Form 706-NA is used by executors of the estates of Nonresident Non-Citizen (NRNC) decedents in order to compute estate and generation-skipping transfer (GST) tax liabilities for their decedents. It must be submitted when the date of death value of the decedent’s U.S.-situated assets, together with the gift tax specific exemption and the amount of adjusted taxable gifts, exceeds the filing threshold of $60,000. The executor must file Form 706-NA within 9 months after the date of death, and can get a 6-month extension of time to file if needed. Certain countries have death tax treaties in effect with the U.S., which must be adhered to and accounted for when completing the form. The tax computation is done by completing Part I and Part III of the form, and then adding up the gross estate in the United States on Schedule A, and reducing it according to the allowable deductions on Schedule B in order to derive the taxable estate. The death tax is figured using Part II.

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Step-by-Step: Form 706-NA Instructions For Filling Out the Document

Form 706-NA is used to compute estate and generation-skipping transfer tax liability for nonresident not a citizen decedents. To complete this return, you must obtain Form 706 and the accompanying instructions. Before filing, executors must provide documentation to prove their status as personal representative of the deceased’s estate, such as a certified copy of the will or court order. An extension of time to file may be requested using Form 4768. File Form 706-NA with the Department of the Treasury Internal Revenue Service Center, or use a private delivery service for timely filing. Penalties may be imposed for late filing, late payment, evading or defeating payment, or valuation understatements. Countries with death tax treaties include Australia, Ireland, Austria, Italy, Canada, Japan, Denmark, Netherlands, Finland, South Africa, France, Switzerland, Germany, United Kingdom, and Greece. To complete Form 706-NA, begin by completing Part I, Part III, Schedule A and B, and Part II. Depending on the decedent’s circumstances, special rules may apply for U.S. expatriates or those who expatriated prior to June 17, 2008. Further instructions, addresses, and fees can be found on IRS.gov.

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Below, we present a table that will help you understand how to fill out Form 706-NA.

Information Required for Form 706-NA Details
Form Purpose Purpose of Form 706-NA
Documentation Required documentation and attachments
Extensions and Penalties Requesting extensions and penalties for late filing
Death Tax Treaties Information about countries with death tax treaties

Do You Need to File Form 706-NA Each Year?

No, Form 706-NA does not need to be filed each year. It is used by estate executors to figure estate and generation-skipping transfer tax liability for nonresident not a citizen (NRNC) decedents and must be filed within 9 months of the date of death, unless an extension of time is granted. The executor must file it if the date of death value of the decedent’s U.S.-situated assets, along with the gift tax specific exemption and the amount of adjusted taxable gifts, exceeds the filing threshold of $60,000. Penalties are applied for the late filing of returns and late payment of taxes, unless there is reasonable cause for the delay. Additional information may be found in the instructions for Form 706-NA.

Download the official IRS Form 706-NA PDF

On the official IRS website, you will find a link to download Form 706-NA. 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-NA

Sources:

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

https://www.irs.gov/instructions/i706na

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