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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.
A decedent would have been subject to the 10-year alternative tax regime of section 877(b) if the individual met one of three tests set out under section 877(a) relating to
average annual net income tax liability,
net worth, and
certification of tax compliance.
See sections 877 and 2701, and Form 8854, Initial and Annual Expatriation Statement, as it existed in the relevant tax year for additional information.
A decedent would have been presumed to be subject to the 10-year alternative tax regime of section 877(b) if the individual's average annual net income tax liability or net worth exceeded certain limits, absent a private letter ruling reversing the presumption. See sections 877 and 2701 and Form 8854 as they existed in the relevant tax year for additional 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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