On page 1 of Form 706-A, we have added a new line 7 to Part I and a new line 20 to Part II. Check the box on line 7 of Part I to indicate that the qualified heir is making an election to increase the basis of specially valued property. Report on line 20 of Part II the amount of interest being paid. For more information, see Basis, Election to increase basis on page 2.

The Small Business and Work Opportunity Tax Act of 2007, P.L. 110-28, extends the application of return preparer penalties to preparers of estate tax returns. See Penalties, Return preparer below for more information.