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Form 706-NA is used to compute estate and generation-skipping transfer (GST) tax liability for nonresident alien decedents. The estate tax is imposed on the transfer of the decedent's taxable estate rather than on the receipt of any part of it.
Internal Revenue Service
Cincinnati, OH 45999
The following definitions apply in these instructions.
U.S. citizens and long-term residents who relinquished their U.S. citizenship or ceased to be lawful permanent residents (green card holders) on or after June 17, 2008, are not considered U.S. expatriates for purposes of this form. U.S. citizens and residents who receive bequests from such individuals, however, may be subject to tax under section 2801.
A citizen or long-term resident who lost U.S. citizenship or residency after June 3, 2004, but before June 17, 2008, is subject to the alternative tax regime of section 877 when the individual:
Had an average annual net income tax liability for the 5 tax years ending before the date of expatriation greater than:
$124,000 if expatriated in 2004
$127,000 if expatriated in 2005
$131,000 if expatriated in 2006
$136,000 if expatriated in 2007
$139,000 if expatriated in 2008;
Had a net worth of $2,000,000 or more on the date of expatriation; or
Fails to certify compliance with all federal tax obligations for the 5 preceding taxable years, unless he or she is a minor or a dual citizen without substantial contact with the United States. See sections 877(c)(2)(B) and (c)(3), for more information.
Under prior law, citizens or certain long-term residents (as defined in section 877(e)) who lost U.S. citizenship or residency on or after February 6, 1995, but before June 3, 2004, are presumed to have the principal purpose of avoiding U.S. taxes if the decedent's average annual net income tax liability or net worth exceeds certain limits. However, the executor has an opportunity to prove otherwise. See sections 877(a)(1), (a)(2), and (c), before its amendment by P.L. 108-357, for more information.
The executor must file Form 706-NA if the date of death value of the gross estate located in the United States exceeds the filing limit of $60,000. The total value of the gross estate may be reduced by the sum of:
The gift tax specific exemption (section 2521) allowed for gifts made between September 9, 1976, and December 31, 1976, inclusive, and
The amount of adjusted taxable gifts made after December 31, 1976.
File Form 706-NA within 9 months after the date of death unless an extension of time to file was granted.
If you are unable to file Form 706-NA by the due date, use Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, to apply for an automatic 6-month extension of time to file. Check the “Form 706-NA” box in Part II of Form 4768.
File Form 706-NA at the following address.
Department of the Treasury
Internal Revenue Service Center
Cincinnati, OH 45999
The law provides for penalties for both late filing of returns and late payment of tax unless there is reasonable cause for the delay. There are also penalties for willful attempts to evade or defeat payment of tax.
The law also provides for penalties for valuation understatements that cause an underpayment of tax. See sections 6662(g) and (h) for more details.
Death tax treaties are in effect with the following countries.
|*Article XXIX B of the United States—Canada Income Tax Treaty|
If you are reporting any items on this return based on the provisions of a death tax treaty or protocol, attach a statement to this return indicating that the return position is treaty-based. See Regulations section 301.6114-1 for details.
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