Line 1b.   Enter the taxpayer identification number (TIN) of the surviving spouse. The TIN is the social security number (SSN) or individual taxpayer identification number (ITIN).

If trustee files entire return—Lines 2a, 2b, and 2c.   If the trustee is filing the entire return, enter the trustee's information on lines 2a, 2b, and 2c.

Line 2b.   If the trustee/designated filer is an individual, enter his or her SSN. Otherwise, enter the employer identification number (EIN) of the trustee/designated filer.

Line 2c.   Enter the address at which you wish to receive correspondence from the IRS regarding this return. This must be an address for the designated filer, or if the trustee is filing the return, one of the individual trustees who is a U.S. citizen or a trustee that is a domestic corporation.

Line 4a.   Enter the name of the decedent on whose estate tax return the QDOT election was made.

Line 4b.    Enter the SSN of the decedent or, if applicable, the number previously assigned to the decedent's estate by the service center.

Line 1. Alternate valuation.   Unless you elect at the time you file this return to adopt alternate valuation under section 2032, then you must value all property of all trusts listed on Schedule A, Part III on the date of the surviving spouse's death.

  You may not elect alternate valuation unless the election will decrease both the value of the Schedule A, Part III property, and the net tax due on the return.

  A designated filer filing for multiple trusts must make this election for all of the Schedule A, Part III property in all of the trusts, taken as a whole. The election cannot be made unless the requirements are met for all of the property.

  You elect alternate valuation by checking “Yes” on line 1 and filing Form 706-QDT. Once made, the election is irrevocable.

  If you elect alternate valuation, you must value all of the property to which the election applies as of the applicable date as follows.

  For additional details, see Part 3—Elections by the Executor in the separate Instructions for Form 706.

Line 2. Special-use valuation of section 2032A.   Under section 2032A, you may elect to value certain farm and closely held business real property at its farm or business use value rather than its fair market value. You may elect both special-use valuation and alternate valuation. To elect this valuation, you must check “Yes” on line 2 and complete and attach Schedule A-1 of Form 706 and its required additional statements.

  

You must file Schedule A-1 of Form 706 and its required attachments with Form 706-QDT for this election to be valid.

  The total value of the property valued under section 2032A may not be decreased from fair market value by more than $940,000 for decedents dying in 2007 ($960,000 for 2008). For future years, the IRS will publish the amount in an annual revenue procedure.

  Real property may qualify for the section 2032A election if:

  For definitions and additional information, see section 2032A and the related regulations. Also see the Form 706 instructions for Part 3—Elections by the Executor and the instructions for Schedule A-1 within the Form 706 itself.

Line 3. Installment payments.   If you check this line to make a protective election, you should attach a notice of protective election as described in Regulations section 20.6166-1(d). If you check this line to make a final election, you should attach the notice of election described in Regulations section 20.6166-1(b).

  In computing the adjusted gross estate under section 6166(b)(6) for purposes of determining whether an election may be made under section 6166, the net amount of any real estate in a closely held business must be used.

Bond or lien.   The IRS may require that an estate furnish a surety bond when granting the installment payment election. In the alternative, the executor may consent to elect the special lien provisions of section 6324A, in lieu of the bond. The IRS will contact you regarding the specifics of furnishing the bond or electing the special lien. The IRS will make this determination on a case-by-case basis, and you may be asked to provide additional information.

  If you elect the lien provisions, section 6324A requires that the lien be placed on property having a value equal to the total deferred tax plus 4 years of interest. The property must be expected to survive the deferral period.

Line 4. Spousal election.   If the surviving spouse has become a U.S. citizen, the QDOT tax will not apply to any distributions made after the surviving spouse became a citizen as long as either:

  You should file a final Form 706-QDT to notify the IRS that the QDOT tax no longer applies for this reason.

  If the surviving spouse does not meet either of the conditions above, the QDOT tax will still not apply to distributions after he or she becomes a citizen if the surviving spouse elects both:

  To make these elections, check “Yes” on line 4.

If the trustee is filing the entire return, the trustee needs to complete only lines 1a and 1b of this part of Schedule B (but all of Parts II through VI). When completing Part I on page 1, enter the remaining trustee's information on lines 2a, 2b, and 2c.

Enter here the total of all taxable distributions that were or should have been reported on previously filed Forms 706-QDT.

Enter here the total amount of corpus distributed during the calendar year or other period covered by this return and before the date of death of the surviving spouse. Include as a distribution on this line any QDOT estate tax paid during the calendar year out of the QDOT. Include all distributions even if the hardship exemption is being claimed.

Also, include as distributions in this part any reportable payments to the surviving spouse from nonassignable annuities and other arrangements when the executor has filed with the estate tax return for the decedent's estate an agreement to pay section 2056A estate tax on such distributions. For details, see Regulations section 20.2056A-4(c).

You must report in Part IV all property remaining in the QDOT on the date of death of the surviving spouse (or the date the trust failed to qualify as a QDOT, if applicable). This includes both corpus and undistributed income.

Interest accrued to the date of the surviving spouse's death on bonds, notes, and other interest bearing obligations is property of the QDOT on the date of death. Rent accrued to the date of the surviving spouse's death on leased real and personal property is property of the QDOT on the date of death.

Outstanding dividends that were declared to stockholders of record on or before the date of the surviving spouse's death are considered property of the QDOT on the date of death. Ordinary dividends declared to stockholders of record after the date of the surviving spouse's death are not property of the QDOT on the date of death. However, if you have elected alternate valuation on line 1 of Part II, page 1, and dividends are declared to stockholders of record after the date of the surviving spouse's death so that the shares of stock at the later valuation date do not reasonably represent the same property at the date of the surviving spouse's death, include those dividends (except dividends paid from earnings of the corporation after the date of the surviving spouse's death) in the alternate valuation.

If there is not enough space to list all of the property, attach additional sheets of the same size, using the same format as Part IV.

Marital and charitable deductions are allowable for any property that both remained in the QDOT on the date of the surviving spouse's death and was includible in the gross estate of the surviving spouse (or would have been includible if the surviving spouse had been a U.S. citizen or resident).

Do not make an entry in Parts V and VI unless there is an entry in Part IV of Schedule B. Also, the sum of the total of the amounts entered in Parts V and VI cannot exceed the total of the amount entered in Part IV of
Schedule B.

For details on the marital and charitable deductions, see the instructions for Schedule M and Schedule O of Form 706, as applicable.

Line 7.   Enter the amount of the taxable estate from one of the following as filed for the decedent's estate or as finally determined by the IRS:

Lines 10 and 11.   Using the same revision of Form 706 or Form 706-NA on which the executor filed the decedent's estate tax return, recompute the decedent's net estate tax by substituting the amounts on line 9 and line 8 of this Form 706-QDT for the decedent's taxable estate from one of the following:

  Prior year versions of Forms 706 and 706-NA can be obtained by calling 1-800-TAX-FORM (1-800-829-3676) or by accessing the IRS website at
www.irs.gov.

  Note that as a result of the recomputation, some items other than the taxable estate might be different from what was on the decedent's actual estate tax return. If the decedent's estate did not fully use its unified credit, additional unified credit may be allowable in the recomputation.

  If the decedent's estate claimed a credit for tax on prior transfers and the credit was limited by section 2013(c), the recomputed credit may be different than on the return as filed.

  Also, if the decedent's estate claimed a credit for state death taxes (for decedents dying before January 1, 2005) or a credit for foreign death taxes and the amount of the credit that could be claimed was limited by section 2011(b) (prior to its repeal on January 1, 2005) or section 2014(b), respectively, the recomputed credit may be different.

  If the final determination of the tax due on the estate of the decedent has not been made at the time this return is filed, you must compute the tax on these lines using the highest rate of tax (see Table of Maximum Tax Rates below) in effect at the time of the decedent's death.

  Also, if there is more than one QDOT with respect to any decedent, you must compute the tax on lines 10 and 11 using the highest rate of tax (see Table of Maximum Tax Rates below) in effect at the time of the decedent's death unless all of the following conditions are met.

  Further, if the return is being filed because of the death of the surviving spouse, then in computing line 10, any foreign death taxes paid by the estate of the surviving spouse may be used in determining the allowable credits in recomputing the decedent's estate tax, if all of the following conditions are met.

  For details on claiming this credit, see the Instructions for Form 706. If you claim the foreign death tax credit, you must complete and attach Schedule P of Form 706.

  

Line 14.   Make the check payable to the “United States Treasury.” Please write the surviving spouse's SSN (or ITIN, if applicable) and “Form 706-QDT” on the check to assist us in posting it to the proper account.