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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.
For information about transfer certificates for U.S. assets, write to the following address.
Internal Revenue Service
Cincinnati, OH 45999
Stop 824G
The following definitions apply in these instructions.
A nonresident alien decedent is a decedent who is neither domiciled in nor a citizen of the United States at the time of death. For purposes of this form, a citizen of a U.S. possession is not a U.S. citizen.
A long-term U.S. resident is an alien who is a lawful permanent resident of the U.S. in at least 8 of the last 15 taxable years ending with the taxable year in which U.S. residency is terminated.
A citizen or long-term resident who lost U.S. citizenship or residency after June 3, 2004, is subject to the alternative tax regime of section 877 when the individual:
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Has average annual net income tax in excess of $145,000 for 2009 for the 5 taxable years preceding the loss of U.S. citizenship;
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Has a net worth of $2,000,000 or more on the date of the loss of U.S. citizenship; or
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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, 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), (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 decedent's gross estate located in the United States under Internal Revenue Code situs rules exceeds the filing limit. The filing limit is $60,000 reduced by the sum of:
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The gift tax specific exemption (section 2521) allowed with respect to gifts made between September 9, 1976, and December 31, 1976, inclusive, and
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The total taxable gifts made after December 31, 1976, that are not included in the gross estate.
File Form 706-NA within 9 months after the date of death unless an extension of time to file was granted.
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.
| Australia | Ireland |
| Austria | Italy |
| Canada* | Japan |
| Denmark | Netherlands |
| Finland | Norway |
| France | South Africa |
| Germany | Switzerland |
| Greece | United Kingdom |
| *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, you may have to attach a statement to this return disclosing the return position that is treaty based. See Regulations section 301.6114-1 for details.
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