Accessibility Skip to Top Navigation Skip to Main Content Home  |  Change Text Size  |  Contact IRS  |  About IRS  |  Site Map  |  Español  |  Help  

Part 3. Submission Processing

Chapter 11. Returns and Documents Analysis

Section 106. Estate and Gift Tax Returns (Cont. 1)

3.11.106  Estate and Gift Tax Returns (Cont. 1)

3.11.106.5 
♦Computer Condition Codes (CCCs)♦

3.11.106.5.7  (01-01-2010)
CCC "R" —Reasonable Cause for Delinquency

  1. We will no longer code CCC "R" if the taxpayer requests abatement for Failing to Timely File when the return is submitted.

    Note:

    In the case of a disaster, specific instructions for the use of this code will be provided at that time.

  2. See IRM 3.11.106.10.3.2 if a Form 706, United States Estate (and Generation-Skipping Transfer ) Tax Return, is received with an original Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, with an approved extension of time to file.

  3. For Forms 706 and 709 series returns, the Cincinnati Compliance Services, Estate and Gift Tax Campus Operation will make a determination regarding reasonable cause and assess any penalty(ies), etc., against the account, if applicable. They have determined the return(s) should be processed through the pipeline (without delay) while they are making their determination of reasonable cause and assessments of applicable penalties.

  4. The following instructions apply for handling of Forms 706 and 709 series returns:

    1. Make a photocopy of Pages 1 and 2 of the return.

    2. Detach the taxpayer's statement from the return.

    3. Attach the photocopy of the return and the taxpayer's statement to Form 4227, Intra-SC Reject or Routing Slip, and route to the Cincinnati Compliance Services, Estate and Gift Tax Campus Operation.

    4. Continue normal processing of the (original) return.

    Note:

    All "R" coded returns must have a received date. If one is not present, enter the date in the middle of the return.

  5. If a Cincinnati Compliance Services, Estate and Gift Tax Campus Operation representative visits Code and Edit for an on-site review for determination(s) of reasonable cause, proceed as follows:

    1. Edit the appropriate CCC on the return per Exam's (Cincinnati Compliance Services, Estate and Gift Tax Campus Operation) instructions.

    2. Continue normal processing of the return.

3.11.106.5.8  (01-01-2010)
♦CCC "U" —Unprocessable Conditions♦

  1. Edit CCC "U" on any return that has an unprocessable condition. This applies only to the Form 706-GS(D), Generation-Skipping Transfer Tax Return For Distributions, and Form 706-GS(T), Generation-Skipping Transfer Tax Return For Terminations.

    Note:

    All returns will receive CCC "U" except Form 706 and 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Returns, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Returns.

  2. For Forms 706, 706-NA, and 709, See IRM 3.11.106.2.3, Unprocessable Conditions-Forms 706 and 706-NA, for the appropriate Action Code to use for unprocessable conditions.

3.11.106.5.9  (01-01-2010)
♦CCC "W" —Return " Cleared by Statute" ♦

  1. CCC "W" is used when the return has been cleared by Statute Control. ( See IRM 3.11.106.5.9.1, Statute Returns.)

3.11.106.5.9.1  (01-01-2010)
♦Statute Returns♦

  1. Any return with a received date that is 2 years and 9 months or more after the return due date is a potential statute control return. Identify and treat statute control returns as unprocessable.

  2. Statute returns must be routed to the Statute Control Unit daily or more often if needed.

    Exception:

    Do not route to Statute Control Unit for clearance, edit a CCC "W" and continue processing, if any of the following conditions are present:

    • Compliance (Section 6020(b)) returns.

    • A return with TC 59X or ICS notated on the face of the return.

    • Returns that are substitute returns prepared by Examination (SFR in top margin) with Form 13133, Expedite Processing Cycle, attached.

    • The return has a stamp that indicates a previous clearance by Statute Control within the last ninety days.

  3. Statute returns are unprocessable until they are cleared by Statute Control:

    If Then
    The return is numbered 1. Edit Action Code 310 on the return ( Form 706 and 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Returns, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Returns). For all other forms (including, but not limited to Form 706-A, United States Additional Estate Tax Return; Form 706-D, United States Additional Estate Tax Return, under Code Section 2057; Form 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts; Form 706-GS(D), Generation-Skipping Transfer Tax Return For Distributions, and Form 706-GS(T), Generation-Skipping Transfer Tax Return For Terminations, edit CCC "U" on the return.
    2. Leave the return in the batch and continue processing.
    The return is unnumbered 1. Do not continue processing.
    2. Pull the return from the batch.
    3. Attach Form 4227 and route to Statute Control Unit.

  4. Edit CCC "W" if the return has been cleared by Statute Control Unit. Statute will stamp or indicate clearance on the front of the return.

3.11.106.5.10  (01-01-2010)
CCC "X" —Return Settlement Frozen

  1. Edit CCC "X" :

    If Then
    Taxpayer has requested part of the refund be applied to another account 1. Edit CCC "X" .
    2. Photocopy Pages 1 and 2 of the return.
    3. Prepare Form 3465, Adjustments Request. Attach photocopy and forward to Accounts Management.
    4. Notate "Form 3465 Prepared" on original return.
    There is "no reply" to a correspondence and a refund is due Edit CCC "3" as well.

3.11.106.5.11  (01-01-2010)
CCC "Y" —Designates a Yield Condition

  1. The CCC "Y" is used by different programs to designate a "yield" condition (and is used by other BMF programs to represent a change in the accounting period). However, for the Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and Form 709, United .States Gift (and Generation-Skipping Transfer) Tax Returns, CCC "Y" designates a yield condition for 3 entirely different reasons.

  2. Edit a CCC "Y" when either of the following conditions apply:

    • It is a "Combat Zone" return. (Form 706 series only.)

    • It is an "Early Filed" return. (Form 709 only.) See (4) below.

    • It is a "Form 709 from a non-resident alien taxpayer" .

  3. The following information pertains to Combat Zone returns:

    If Then
    A decedent is killed in action or died as a result of wounds, disease or injury received while serving in a Combat Zone 1. Edit CCC "Y" .
    2. The decedent is entitled to lower estate tax per IRC Sections 2201 and 2011(d).
    3. The tentative tax equals 125% of the maximum allowable state death tax credit.
    4. All other credits against estate tax (including unified credit) apply to these returns.

  4. The following information pertains to "Early Filed remittance returns" :

    If Then
    A gift was given the same year the return is filed, but is not due until April 15th of the following year (e.g., a gift was given in 2009, the return was filed in 2009, and the return is due April 15, 2010)
    1. Edit CCC "Y" .
    2. The return cannot be processed until after December 31, 2009; post it as the month actually received. For example, if the return is received in January 2009, post it as 0901, etc.
    3. This applies to remittance returns. ( See Figure 3.11.106-5.)

    Figure 3.11.106-5

    Figure 3.11.106-5 - Computer Condition Code
    Please click here for the text description of the image.

    Figure 3.11.106-5 - Computer Condition Code

  5. Edit a CCC "Y" on Forms 709 filed by non-residents who are not United States citizens.

3.11.106.5.12  (01-01-2010)
♦CCC "3" —No Reply to Correspondence—Suppress Credit Interest♦

  1. Edit CCC "3" when either the taxpayer fails to respond to correspondence or when correspondence is returned undeliverable. It will suppress credit interest from being generated.

3.11.106.5.13  (01-01-2010)
CCC "7" —Reasonable Cause Statement Denied

  1. The Cincinnati Compliance Services, Estate and Gift Tax Campus Operation, will make all determinations of reasonable cause for all Form 706, United States Estate (and Generation-Skipping Transfer) Tax Returns, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Returns.

  2. If a Compliance Services representative visits Code and Edit for an on site review for determination(s) of reasonable cause, proceed as follows:

    1. Edit the appropriate CCC on the return per Compliance Services instructions.

    2. Continue normal processing of the return.

    Note:

    Unless Examination has determined that an on site visit by Compliance Services personnel is needed, there will be no need to determine whether a CCC "7" is appropriate or not.

3.11.106.6  (01-01-2010)
Taxpayer Correspondence General

  1. All Taxpayer Correspondence is governed by the guidelines in IRM 1.15.29, Records Management-Records Control Schedule for Service Center Operations, which includes:

    1. All written communication from a taxpayer or his/her representative, excluding tax returns, whether solicited or unsolicited.

    2. Written communication which requests information, including requests attached to tax return.

    3. Written communication, including annotated notice responses, that provide additional information or dispute a notice.

  2. A written referral resulting from taxpayer telephone contact or walk-in inquiry (although not included in the definition of taxpayer correspondence) should be handled in adherence to the guidelines contained in IRM 1.10, Office of the Commissioner of Internal Revenue, The IRS Correspondence Manual.

  3. Unnumbered amended returns (i.e., 1040X, 1120X, etc.), although not included in the definition of taxpayer correspondence, should be handled in adherence to the guidelines contained in IRM 1.10.1, Office of the Commissioner of Internal Revenue, The IRS Correspondence Manual.

  4. Timeliness guidelines for acknowledging and working taxpayer correspondence as outlined in IRM 3.30.123, Work Planning and Control - Processing Timeliness: Cycles, Criteria and Critical Dates, must be followed.

3.11.106.6.1  (01-01-2010)
♦Correspondence♦

  1. Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable.

    Exception:

    Do not correspond or send back returns prepared by Compliance (6020(b) and SFR).

  2. Examine the return so that all of the conditions can be included in the same correspondence.

  3. Follow the instructions below when correspondence is needed.

    If And Then
    Correspondence is needed requires a response 1. Complete Form 3696 or other approved Correspondence Action Sheet indicating the letter number, Master File Tax (MFT), number of copies and the appropriate paragraphs.

    Note:

    Within these paragraphs there may be fill-ins that the tax examiner will be required to enter, such as tax period, form number, DLN, etc.


    2. Attach Form 3696 or other approved Correspondence Action Sheet to the front of the return below the Entity area.
    3. Edit Action Code 211 on Forms 706, 706-NA, and 709. Use CCC "U" for all other returns.
    4. Continue editing the return.
    5. Leave the return in the batch.
    Correspondence is needed does not require a response 1. Complete Form 3696 or other approved Correspondence Action Sheet indicating the letter number, MFT, number of copies and the appropriate paragraphs.

    Note:

    Within these paragraphs, there may be fill-ins that the tax examiner will be required to enter, such as tax period, form number, DLN, etc.


    2. Photocopy and attach Form 3696 or other approved Correspondence Action Sheet below the Entity areas on the front of the return. Be sure the name and address shows clearly above the Form 3696 or other approved Correspondence Action Sheet.
    3. Forward the copy to the Correspondence area.
    4. Edit an Action Trail (e.g., "180C SENT" ) in the lower left corner going vertically up the side of the return.
    5. Finish editing the return and leave in batch.

    Note:

    There may be additional letters that are exclusive to the Tax Examiner's campus. These letters are for specific forms or conditions where it was deemed necessary for ease of processing. The Tax Examiner should go to their manager for copies of these letters to facilitate processing.

3.11.106.6.2  (01-01-2010)
♦Correspondence Imaging System (CIS) Returns♦

  1. Correspondence Imaging System (CIS) is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working cases from those images.

  2. CIS returns are identified with "CIS Image-Do not correspond for Signature" stamped below the signature line or "CIS" is annotated on the front of the return.

  3. Verify all edit marks on a CIS return.

    If Then
    The edit marks are black Underline the edit mark if correct or circle if incorrect.
    The edit marks are red or green Circle if incorrect.

  4. Follow the correspondence instructions below for CIS returns.

    If And Then
    The CIS return has a Form 13596 attached

    Note:

    If there is an indication on the return that correspondence has been sent (e.g., CCC "3" is edited on the return), do not route the return to AM.

    Continue processing the return     		It is not a complete return (i.e., missing signature, schedules, or forms) Remove the return from the batch and route to AM.

    Note:

    Do not correspond for missing information on CIS reprocessable/re-input returns.
    The CIS return does not have a Form 13596 attached It is not a complete return (i.e., missing signature, schedules, or forms) Follow normal correspondence procedures.

3.11.106.6.3  (01-01-2010)
Fact of Filing—Transaction Code 59X

  1. The following information pertains to TC59X:

    If Then
    An unnumbered return is withdrawn from the workflow for correspondence 1. Input through IDRS, (no later than 3 weeks before the delinquency check) a fact of filing to alter the normal delinquency check.
    2. Annotate the transaction and closing codes input in the middle left margin of the return.
    3. Using Command Code FRM49BB, the codes are as follows:
     a. TC 599–17 Unprocessable Tax Return.
     b. TC 599–18 Return in progress on or after the program completion date.
    The return is being sent back to the taxpayer The above instructions do not apply. TC 599 is not necessary.

3.11.106.6.4  (01-01-2010)
♦Use of Fax for Taxpayer Submissions♦

  1. Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, fax signatures are acceptable.

  2. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.

  3. Code and Edit examiners will indicate the fax paragraph on the Form 3696, Correspondence Action Sheet, to advise taxpayers of the option to fax their response.

    Caution:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3, Accounts Management & Compliance Services Operations - Operational Guidelines Overview. Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail. Fax procedures contained in IRM 11.3.1.10, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

3.11.106.7  (01-01-2010)
General Editing Guidelines

  1. General instructions eliminate repetition of the same instructions for each return. If the general instructions and the specific instructions conflict, follow the specific instructions.

  2. Do not edit a vertical line, 00, dash or decimal point in a dollars and cents field when the taxpayer has entered dollars only.

  3. Do not edit brackets or parentheses around amounts clearly indicated to be negative by the presence of a minus sign (-).

    Reminder:

    It will be necessary to bracket negative amounts when editing negative entries on transcription lines (i.e., computing and entering a line entry, entering a missing line entry, etc.).

  4. Received date is edited in MMDDYY format.

  5. Document Perfection should arrange Pages 1, 2, and 3 of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, in sequential order to facilitate transcription entry.

  6. If a current/prior year return is filed on a tax form for other than the appropriate tax year, convert the tax return to the current year format using the prior year conversion tables.

  7. If a current year (2009) return is filed on a 2005 or prior year tax form, renumber the prior year return to comply with current year line numbers.

  8. If a current year (2009) tax form is used to report prior year tax information, edit the tax period to reflect the prior year.

  9. If the prior year return is filed on the correct/incorrect tax form, renumber the prior year form to current year format.

3.11.106.7.1  (01-01-2010)
♦Edit Marks♦

  1. Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) System through ISRP. The editing can be entered in brown, red, orange, purple or green pencil/pen.

  2. The only items edited on the return are those to be transcribed except where specific instructions require editing of a non-transcribed item. Lines are left blank if the entry would be a zero amount unless otherwise instructed.

  3. The original entry on a return is never obliterated, altered or erased when deleting or correcting an entry. Always exercise care to ensure that the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.

  4. For a description of specific edit marks, see the table below:

    Edit Mark Description
    "X" The "X" is used to delete tax data or to indicate that an item is not to be transcribed.
    "/" A "/" can be used when deleting a form or schedule not being transcribed.
    "//$" The "//$" is used in the entity area to identify the beginning and ending of a foreign country code. For example, "/EI/$" is edited for Ireland and "/GM/$" is edited for Germany.
    "c/o" or "%" Indicates an "in-care-of" name for transcription.
    Circle Indicates that an entry is not to be transcribed. Also used to delete Entity data or a received date.

    Note:

    If the taxpayer circles an entry, edit the entry.
    Underline Indicates that an entry is to be transcribed (e.g., name control, tax period and a received date that is other than an IRS stamped date).
    Arrow Indicates the correct placement of a misplaced entry. An arrow may be used if the misplaced item is close to the correct line and there is no question where the entry belongs.

    Note:

    A double arrow may be used if the same figure is to be transcribed in 2 different places (along with any required transcription data between the 2 arrows).

    Check Mark Indicates that an entry has been manually math verified and is correct.
    Bracket/Parenthesis Indicates a negative numerical amount.

    Note:

    Code and Edit is not required to bracket negative amounts when brackets are preprinted on the form or schedule or when the taxpayer clearly indicates a negative amount with brackets or minus sign (-). It will be necessary to bracket negative amounts when editing negative entries on transcription lines (i.e., computing and entering a line entry, entering a missing line entry, etc.).

    Vertical Line or Decimal Point Indicates the separation of dollars and cents if no distinction has been made by the taxpayer.
    Zero, Dash or None "ZERO" , "DASH" or "NONE" are considered valid entries except when specific instructions require editing of an entry.
    Edit Marks Made by Other IRS Functions Edit marks entered by another area, such as Collections or Accounts Management, are not to be re-edited except to place the marks in the correct area.
    Rocker Indicates the amount paid when drawn under a remittance amount.

3.11.106.8  (01-01-2010)
♦Received Date♦

  1. A received date is required on all Form 706 and 709 series tax returns.

  2. A return is considered timely if it is postmarked on or before the due date.

    If And Then
    The return is received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the extended due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡   The return is considered timely.
    The due date falls on a weekend or legal holiday   The return is timely if postmarked by the first business day following the weekend or legal holiday.
    The IRS received date stamp ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The postmark or shipment date is on or before the due date Edit the postmark or shipment date.

    Note:

    If an extension form is attached (or an indication that an extension was filed), the return due date will be the approved extension date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  3. The received date may or may not be stamped on the face of the return.

  4. If the received date stamp is not present, or the date is illegible or invalid, edit the received date in MMDDYY format in the middle of the first page of the return. Determine the received date in the following priority when it is required and there is no valid date stamp or handwritten received date:

    1. Earliest postmark (U.S. Postal Service, Foreign postmark, or Private Delivery Service) on the envelope. Rules for using the U.S. Postal Service Postmark (USPS) or foreign postmark date are as follows:

      If Then
      An envelope is not attached Use the postmark date stamped on the face of the return.
      An envelope has a USPS and private metered postmark Always use the USPS postmark.
      An envelope has a foreign and private metered postmark Always use the foreign postmark.
      An envelope has two private metered postmarks Always use the latest private postmark.
      An envelope has only one private metered postmark Use the private metered postmark.

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Revenue Officer's signature date.

    3. Signature date (ONLY if within current year).

    4. Julian date minus 10 days in the DLN.

    5. Today's (current) date minus 10 days.

  5. Edit the received date as follows:

    If And Then
    A timely received date is the only received date stamped on the return   No editing is required.
    Two or more dates are stamped on the return   1. Use the earliest IRS date stamp.
    2. Circle out all other dates.
    A federal return is addressed to the IRS Delivered to a state agency Use the postmark date as the received date.
    A federal return is addressed to a state agency   Use the IRS date stamp as the received date.

    Note:

    If an envelope is attached to the return, check the envelope for remittance. If found, hand carry remittance to manager.

3.11.106.8.1  (01-01-2010)
♦Signature♦

  1. A signature and jurat is required on all returns except the following:

    1. Returns prepared under IRC Section 6020(b). These returns must be signed by a Compliance Function Representative.

    2. Returns prepared by Examination, i.e., SFR (Substitute For Return).

    3. Dummy returns prepared by IRS.

    4. Correspondence is attached showing that the taxpayer is responding to an IRS notice or letter.

    5. Correspondence Imaging System (CIS) returns that have Form 13596 attached.

  2. Follow the instructions below if the return is not signed on the line designated for the taxpayer's signature.

    If Then
    The return is not signed on the line designated for the taxpayer's signature 1. Edit Action Code 225 or Action Code 226 if corresponding for signature only.
    2. Leave in batch and continue processing.
    The jurat is not present on the line designated for the taxpayer's signature (non-standard return) 1. Edit Action Code 225 or Action Code 226 if corresponding for signature only.
    2. Leave in batch and continue processing.

  3. See IRM 3.11.106.2.3.4 for frivolous returns instructions if the jurat is altered or stricken (crossed out).

  4. Accept a "signature declaration" (a signature with jurat obtained through IRS correspondence) if attached to the return.

    1. See IRM 3.11.106.2.3.4 for frivolous returns instructions if the "signature declaration " is altered or stricken (crossed out).

    2. If the taxpayer responds with a self-prepared signature declaration, it must contain the same language as the jurat on the tax return; i.e., "UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE EXAMINED THIS RETURN, INCLUDING ACCOMPANYING SCHEDULES AND STATEMENTS, AND TO THE BEST OF MY KNOWLEDGE AND BELIEF, IT IS TRUE, CORRECT AND COMPLETE" .

  5. Since tax examiners are not expected to be handwriting experts, Section 6064 of the Regulations allows the Service to presume that the signature on a return, statement or other document is the true signature of the person who actually signed the document.

    Note:

    A check mark or "X" used to designate where the taxpayer should sign the return is not considered a valid signature.

3.11.106.8.2  (01-01-2010)
♦Paid Preparer Section♦

  1. The Paid Preparer section is located below the Signature area at the bottom of Forms 706, 706-NA, 706-GS(D), 706-GS(T), and 709.

3.11.106.8.2.1  (01-01-2010)
♦Paid Preparer Checkbox Indicator (Form 709 only)♦

  1. The Paid Preparer Checkbox is located next to the taxpayer signature area on Form 709. It indicates whether the taxpayer has elected to allow the Paid Preparer to answer questions about the return as it is processed.

  2. No action is required on amended returns.

  3. Take the following actions when an entry is present in the Paid Preparer Checkbox on Form 709:

    If Then
    The "Yes" box is checked Take no action.
    The "No" box is checked; neither box is checked; or, both boxes are checked Circle the Paid Preparer's Phone Number, if present.

3.11.106.8.3  (01-01-2010)
♦Paid Preparer SSN or Preparer Tax Identification Number (PTIN)♦

  1. The Preparer's Social Security Number (SSN) or Preparer Tax Identification Number (PTIN) is located to the right of the Preparer's Signature at the bottom right corner of Forms 706, 706-NA, 706-GS(D), 706-GS(T), and 709 (Page 1).

  2. No action is required on amended returns.

  3. The Preparer's SSN must be a 9 digit number. The SSN cannot be all zeros or nines.

  4. A PTIN is a valid entry in the Preparer's SSN area at the bottom of Forms 706, 706-NA, 706-GS(D), 706-GS(T), and 709. The PTIN is an 8 digit number preceded by the alpha "P" (e.g., PXXXXXXXX).

  5. Circle out the Preparer's SSN or PTIN if it is invalid.

3.11.106.8.4  (01-01-2010)
♦Paid Preparer EIN♦

  1. The Preparer's Employee Identification Number (EIN) is located below the Preparer's SSN/PTIN at the bottom right corner of Forms 706, 706-NA, 706-GS(D), 706-GS(T), and 709 (Page 1).

  2. No action is required on amended returns.

  3. The Preparer's EIN must be a 9 digit number. The EIN cannot be all zeros or nines.

  4. Circle out the Preparer's EIN if it is invalid.

3.11.106.8.5  (01-01-2010)
♦Paid Preparer Phone Number♦

  1. The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right corner of Forms 706, 706-NA, 706-GS(D), 706-GS(T), and 709.

  2. No action is required on amended returns.

  3. If a complete Paid Preparer Phone Number is located on the Paid Preparer's Phone Number line, no editing of this line is necessary.

  4. If the return is for a tax period prior to 2001, circle out the phone number.

  5. If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10 digits, quickly review the return and all attachments.

    Note:

    If more than 10 digits are present, continue processing the return. Only the first 10 digits will be transcribed (captured).

    If Then
    A complete Paid Preparer's Phone Number is located elsewhere on the return or attachments Edit to the "Phone no." line.
    A complete Paid Preparer's Phone Number is not located or the number is illegible Circle the incomplete or illegible phone number.

3.11.106.8.6  (01-01-2010)
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ receiving most tax returns after the last day ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ applies to a return filed under an extension of time as well as to returns subject to regular filing requirements, except that interest is not exempt for the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.11.106.8.6.1  (01-01-2010)
≡ ≡ ≡ ≡ ≡ ≡

  1. All received dates on every Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, with an amount greater than zero on Line 18, Page 1, Part 2, must be verified using the following table:

    Note:

    Form 706 is due exactly 9 months to the day of the Date of Death.

    If Then
    The form is date stamped ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    The date shows legal timely mailing without regard to a due date falling on Saturday, Sunday or holidays Change the received date to the postmark date.
    Estate and Gift Tax returns are erroneously addressed to state agencies Returns will be date stamped when received with current IRS received date.
    Returns that were correctly addressed but erroneously delivered by the U.S. Postal Service to a state agency If original envelope bears timely postmark or timely date stamp by the state agency, return will be considered timely filed.
    Envelope was erroneously addressed DO NOT change the IRS date stamp.
    More than one date is stamped 1. Use the earliest date.
    2. Circle out all other dates.
    Entering received date on return See exhibits for where to enter received date
    1. Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. See Exhibit 3.11.106-1.
    2. Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. See Exhibit 3.11.106-4.
    Return is received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ envelope postmark was on or before the due date of the return Consider the return timely.

    (For example: If the return is due July 1, and:
    1. Received stamped ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or
    2. Received stamped ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ June 30, return is timely filed.)

3.11.106.8.7  (01-01-2010)
♦Tax Period♦

  1. All returns must have a tax period. Edit the tax period at the top of the form for Form 706-GS(D), Generation-Skipping Transfer Tax Return For Distributions; Form 706-GS(T), Generation-Skipping Transfer Tax Return For Terminations; and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, only in YYMM format.

    If Then
    The return is for the current processing year No editing is necessary.
    The taxpayer has notated a tax period other than the preprinted year on the return (this is not a current year return) Edit the tax period based on the taxpayer's indication.
    The tax period is missing, incomplete, or illegible 1. Review the return or attachments for the correct period.
    2. If found, edit the tax period to the right of the form (in the area under the form title) in YYMM format.
    3. If unable to determine the tax period after searching the return and attachments, process the return for year currently being processed.

  2. The following information pertains to tax period editing for Forms 706-GS(D), 706-GS(T), and 709:

    If Then
    Editing tax period 1. Do Not edit the tax period on Forms 709, 706-GS(D) and 706-GS(T), if it is for the current tax period.
    2. If editing is required (for other than the current tax period), edit at the top of the return in "YYMM" format.

3.11.106.8.7.1  (01-01-2010)
♦Tax Period—Early Filed Returns♦

  1. An Early Filed Return is defined as a return whose received date is prior to the tax period ending date.

  2. Never send back an Early Filed return to the taxpayer.

    If Then
    The return is early filed and is not a "Final" 1. Edit CCC "U" or Action Code 480.
    2. Route the return to Rejects, using Form 4227, Intra-SC Reject/Routing Slip, to suspend the return.
    The return is early filed and a "Final" Edit CCC "F" .
    Early Filed Return Without Remittance 1. Edit CCC "U" or Action Code 480 on the return.
    2. Attach Form 4227 and note "Early Filed" .
    3. If unable to determine tax period, prepare Form 3696, or other approved Correspondence Action Sheet, to correspond for the correct tax period.
    a. If the taxpayer replies that the tax period is correct as it was originally filed, (i.e., Form 706-GS(D), Generation-Skipping Transfer Tax Return For Distributions, or Form 706-GS(T), Generation-Skipping Transfer Tax Return For Terminations) suspend the return until January of the year due.
    b. If there was NO reply to correspondence, suspend the return until January of the year due.
    c. If the taxpayer replies that the form (i.e., Form 706-GS(D) or Form 706-GS(T)) was for the previous year, correct the tax period 0X12, delete CCC "U" or Action Code, and process the return.
    Early Filed Return With Remittance 1. Edit CCC "U" or Action Code 480 on the return.
    2. Attach Form 4227 and note "Early Filed" .
    3. If unable to determine tax period, prepare Form 3696 or other approved Correspondence Action Sheet. Attach to the front of the form (i.e., Form 706-GS(D) or 706-GS(T)) and leave it in the block to correspond for the correct tax period.
    a. If the taxpayer replies that the tax period is correct as it was originally filed, (i.e., Form 706-GS(D), or Form 706-GS(T)) suspend the return until January of the year due.
    b. If there was NO reply to correspondence, suspend the return until January of the year due.
    c. If the taxpayer replies that the return was for the previous year, correct the tax period 0X12, delete CCC "U" or Action Code, and process the return.
    4. If a remittance is attached, give to your manager.

  3. See IRM 3.11.106.15.5, Tax Period-Form 709, for instructions for tax period editing of Forms 709.

3.11.106.9  (01-01-2010)
♦Entity Perfection—General♦

  1. The entity of a tax return identifies the taxpayer on the business master file. The entity area of the return contains the following:

    1. Social Security Number (SSN)

    2. Name

    3. Address

3.11.106.9.1  (01-01-2010)
♦Entity Perfection—Social Security Number (SSN)♦

  1. The SSN is a 9 digit number (XXX-XX-XXXX) assigned to identify the taxpayer.

  2. Determine the SSN as follows:

    If And Then
    SSN is missing You can determine the correct SSN from the attachments and/or schedules Edit the SSN to the appropriate location.
    The SSN is either a PTIN or Individual Taxpayer Identification Number (ITIN) Unnumbered 1. Remove return from batch.
    2. Attach Form 4227, Intra-SC Reject or Routing Slip, or follow local procedures.
    3. Forward to Entity Control for SSN assignment.
    Numbered 1. Edit Action Code 320.
    2. Attach Form 4227 for routing to Entity Control and leave document in batch.
    Multiple SSNs are present Unnumbered 1. Remove return from batch.
    2. Attach Form 4227 or follow local procedures.
    3. Forward to Entity Control for SSN assignment.
    Numbered 1. Edit Action Code 320.
    2. Attach Form 4227 and leave in the batch.
    The SSN contains any of the following conditions and cannot be determined from attachments and/or schedules:

    • Illegible;

    • Missing;

    • Other than 9 digits;

    • All zeroes; or,

    • All nines

    		 Unnumbered 1. Research IDRS.
    2. If not found, route to Entity.
    Numbered 1. Circle out all illegible SSNs, zeroes or nines.
    2. Edit Action Code 320.
    3. Attach Form 4227 and leave in the batch.
    "PENDING" , "APPLIED FOR" , etc., is indicated in the SSN area Unnumbered 1. Research IDRS.
    2. If not found, route to Entity.
    Numbered 1. Edit Action Code 320.
    2. Attach Form 4227 and leave in the batch.

    Note:

    Action Code 320 is valid on Forms 706, 706-NA, 706-GS(D), 706-GS(T), and 709. All other returns (Forms 706-A, 706-D, 706-CE, 706-GS(D-1), and 706-QDT) are processed through a manual correction system and CCC "U" should be used on these returns.

3.11.106.9.2  (01-01-2010)
♦Entity Perfection—Name Control♦

  1. The Name Control consists of 4 characters or less:

    1. Valid characters are alpha, numeric, ampersand (&), hyphen (-) and blank. However, blanks are only valid in the last 3 positions.

    2. Disregard the word "THE" in the Name Control only when followed by more than one word.

  2. See Document 7071A, BMF Name Control Job Aid, to determine the Name Control.

  3. Edit the Name Control as follows:

    If And Then
    The entity is not an IRS label   Underline the Name Control.
    Unable to determine the Name Control Unnumbered 1. Research IDRS.
    2. If found, edit to the proper location.
    3. If not found, route to Entity Control following local procedures.
    Numbered 1. Edit Action Code 352.
    2. Attach Form 4227, Intra-SC Reject or Routing Slip, and leave in the batch.

    Note:

    Action Code 352 is valid on Forms 706, 706-NA, 706-GS(D), 706-GS(T), and 709. All other returns (Forms 706-A, 706-D, 706-CE, 706-GS(D-1), and 706-QDT) are processed through a manual correction system and CCC "U" should be used on these returns.

3.11.106.9.3  (01-01-2010)
♦Entity Perfection—"In-Care-of" Name♦

  1. An "in-care-of" name can be identified by the words "in care of" or the symbols " c/o" or "%" (percent).

  2. Ensure that the "in-care-of" name is located above the street address:

    If Then
    The "in-care-of" name is located below the street address Arrow the "in-care-of" name above the street address.
    The "in-care-of" name is shown on an attachment Edit the in-care-of name above the street address beginning with the "%" or "c/o" in the first position.
    An "in-care-of" name is changed but there is no indication of an address change Edit the in-care-of name as shown above.

    Note:

    Always circle out the "in-care-of" symbol (% or c/o) if it is present with an address. Do not use the ampersand (&) and the percent sign (%) when editing address information.

3.11.106.9.4  (01-01-2010)
♦Entity Perfection—Domestic Address♦

  1. Perfection of the address is necessary when the mailing address (Street or PO Box) is not easily identified.

    Exception:

    Do not perfect the address on amended returns (CCC "G" ).

  2. The procedures for perfection of addresses for pre-addressed returns indicating an address change and non pre-addressed returns are as follows:

    If And Then
    The address contains information other than a street address or PO Box   No perfection is necessary. ISRP will enter the complete address.
    There is an indication on an attachment that the address has been changed   Edit the new address in the Entity section of the return.
    Form 8822, Change of Address, is attached Information is the same Take no action.
    Information is different Detach Form 8822 and route to Entity Control following local procedures.
    Both a PO Box and a street address are shown   1. Notate "TC 016" in the upper left margin. See Figure 3.11.106-6.
    2. Input TC 016.
    Two street addresses are shown   1. For Forms 706 and 709 series returns, underline the first street address.
    2. Notate "TC016" in the upper left margin.
    3. Input TC 016.
    Two PO Boxes are shown   1. For Forms 706 and 709 series returns, underline the first PO Box.
    2. Notate "TC016" in the upper left margin.
    3. Input TC 016.
    One street address is shown The taxpayer changed the address to a PO Box 1. Notate "TC016" in the upper left margin.
    2. Input TC 016.
    The city and state are not shown on the return but are shown on an attachment   Edit the city and state in the Entity section of the return.
    The ZIP code is missing or illegible Is not available from the return or attachments See Exhibit 3.11.106-22 for determining ZIP code. See Figure 3.11.106-6.
    Only the first 3 digits of the ZIP code can be determined   Edit "01" for the fourth and fifth digits.
    It is necessary to edit the street address   See Exhibit 3.11.106-21 for current Address/Street Abbreviations.

    Note:

    Always circle out the "in-care-of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) and the percent symbol (%) when editing address information.

  3. The U.S. Postal Service established new address requirements for Army Post Office (APO), Domestic Post Office (DPO), and Fleet Post Office (FPO) addresses. If an address appears in the old format, such as APO New York, NY 091XX, convert to the new state code abbreviation (APO AE 091XX) based on the following ZIP Codes:

    ZIP Code Address Abbreviation
    340XX APO/DPO/FPO AA
    090XX-098XX APO/DPO/FPO AE
    962XX-966XX APO/DPO/FPO AP

    Figure 3.11.106-6
    Figure 3.11.106-6 - Entity Edit Marks
    Please click here for the text description of the image.

    Figure 3.11.106-6 - Entity Edit Marks

3.11.106.9.5  (01-01-2010)
♦Entity Perfection—Foreign (International) Address♦

  1. A foreign (international) address is any address that is not in the 50 states or the District of Columbia.

  2. Returns with APO, DPO, or FPO addresses are considered domestic addresses.

  3. Route returns with a foreign (international) address (Forms 706 and 709 series returns) to Cincinnati Submission Processing Campus (CSPC) for processing. Prepare 86C letter to inform the taxpayer that the return has been sent to CSPC.

    Note:

    The legal residence (domicile) of the decedent on Form 706 (Box 3a) or donor on Form 709 (Box 5) determines whether the return is a domestic or foreign (international) address return.

  4. Returns with addresses in the following U.S. Possessions are considered to be a foreign (international) address for processing purposes but are edited in the same way as domestic addresses.

    1. A 2 character alpha code must be edited for the possession name:

      U.S. Possession Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Marshall Islands MH
      Northern Mariana Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Islands (U.S.) VI

    2. A ZIP code must be present. Edit the appropriate ZIP code if one is not provided. See Exhibit 3.11.106-23.

  5. All other foreign (international) addresses are edited the same as a domestic address with the following exceptions:

    1. The foreign country must be the last entry in the address.

    2. Circle out the foreign country and edit the country code preceded by a "/" and followed by "/$" as the last entry in the address. See Exhibit 3.11.106-24 for official foreign country codes.

      Note:

      Submission Processing BMF Foreign Address Job Aid (Number 2324-002) provides examples for editing foreign (international) addresses.

    3. If the foreign (international) address is from Australia, Brazil, Cuba, Italy, Mexico or The Netherlands, check if the address contains a province, state or territory name.

      If Then
      A province, state or territory name is present 1. Circle out province, state or territory name.
      2. Enter appropriate abbreviation. See Exhibit 3.11.106-25.
      A province, state or territory name is not present Continue editing the return.
      Province, state or territory is shown in abbreviated format Continue editing the return.

    4. A ZIP code is not required on a foreign (international) address. Foreign (International) addresses use a postal code that is entered before the city or foreign country and is part of the address.

3.11.106.9.6  (01-01-2010)
♦Foreign Address — Canada Only♦

  1. In an effort to assist Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique country code based on the province.

    If Then
    The foreign address contains a Canadian province name or abbreviation 1. See table below to ensure the correct Canadian province abbreviation is present or edited to the return.
    2. Edit the appropriate country code based on the province preceded by a "/" and followed by a "/$" as the last entry in the address.
    The foreign address does not contain a Canadian province name or abbreviation 1. Circle the country name.
    2. Edit the country code "/CA/$" as the last entry in the address.

    Canadian Province Province Abbreviation Country Code
    Alberta AB XA
    British Columbia BC XB
    Manitoba MB XM
    New Brunswick NB XN
    Newfoundland and Labrador NL XL
    Northwest Territories NT XT
    Nova Scotia NS XS
    Nunavut NU XV
    Ontario ON XO
    Prince Edward Island PE XP
    Quebec QC XQ
    Saskatchewan SK XW
    Yukon YT XY

3.11.106.10  (01-01-2010)
Processing Form 706, United States Estate (and Generation—Skipping Transfer) Tax Return

  1. The following information pertains to processing Form 706.

3.11.106.10.1  (01-01-2010)
Entity—Form 706

  1. The Entity portion of the Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, includes the following:

    • Decedent's Name

    • Decedent's Social Security Number (SSN)

    • Executor's address

3.11.106.10.1.1  (01-01-2010)
Decedent's Name

  1. The Name Control consists of the first 4 alpha characters of the Decedent's last name.

    1. Blanks may be present only in the last 2 positions of the Name Control.

    2. Ampersand (&), and hyphens (-) are the only valid non-alphabetic characters in a name control.

    3. Underline the first 4 characters of the Decedent's last name. ( See Figure 3.11.106-6. )

    4. See Document 7071-A, BMF Name Control Job Aid.

    5. If Name Control cannot be determined, research IDRS. If no data found, use Action Code 320, use Form 4227, Intra-SC Reject or Routing Slip, and route to Entity.

3.11.106.10.1.2  (01-01-2010)
Decedent's Social Security Number (SSN)

  1. Nine numeric characters of the SSN must be present for all estate and gift tax returns; all nines (999999999) and zeros (000000000) will be invalid.

    If Then
    Return is unnumbered and SSN is different from death certificate Research IDRS for correct SSN.
    Return is numbered and SSN is different from death certificate Edit Action Code 320 and route to Entity for determination.
    Return is unnumbered and other than 9 digits, multiple SSN's, missing SSN or in EIN format Research IDRS for correct SSN.
    Return is numbered and other than 9 digits, multiple SSN's, missing SSN or in EIN format Edit Action Code 320 and route to Entity for determination.
    Return is unnumbered and no SSN is found, or the correct SSN cannot be determined Withdraw the return, use Form 4227, Intra-SC Reject or Routing Slip, and forward to Entity Control.
    SSN is on return when return is sent back from Entity Control Continue processing the return.

3.11.106.10.1.3  (01-01-2010)
Executor's Name

  1. When there are 2 or more executors' names listed on the return, underline the first name and circle out the others.

  2. Edit the executors name from attachments if not present in Box 6a.

3.11.106.10.1.4  (01-01-2010)
Executor's Address

  1. The Executor's address is found on Page 1, Box 6b, of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return; also check Page 2, Part 4.

    Note:

    If more than one executor and more than one executor address is listed on the return, underline the address that belongs to the first executor and circle out the others.

  2. See IRM 3.11.106.9.4, Entity Perfection-Domestic Address, for instructions to perfect domestic addresses.

  3. See IRM 3.11.106.9.5, Entity Perfection-Foreign (International) Address, for instructions to perfect foreign (international) addresses.

    Note:

    Always circle out the "in care of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) and the percent symbol (%) when editing address information.

3.11.106.10.1.4.1  (01-01-2010)
Decedent's Residence (Domicile)

  1. The decedent's residence (domicile) at time of death is found on Page 1, Part 1, Box 3a. See IRM 3.11.106.10.6.8 for further instruction.

    Note:

    The legal residence (domicile) of the decedent in Box 3a determines whether the return is a domestic or foreign (international) address return.

  2. CSPC will process all domestic domicile address returns and all foreign (international) address returns (any address that is not in 1 of the 50 states or the District of Columbia).

  3. All U.S. Possessions are considered foreign:

    • American Samoa (AS)

    • Federated States of Micronesia (FM)

    • Guam (GU)

    • Northern Mariana Islands (MH)

    • Marshall Islands (MH)

    • Palau (PW)

    • Puerto Rico (PR)

    • Virgin Islands (U.S.) — (VI)

  4. APO/DPO/FPO addresses are not considered to be foreign (international) addresses.

    1. The Postal Service established new address requirements for APO/DPO/FPO addresses.

    2. If the old address appears (i.e., APO New York, NY 091XX) it must be converted to the new state code abbreviation based on the ZIP Code (i.e., the previous example would be converted to APO AE 091XX).

      ZIP Code Address Abbreviation
      340XX APO/DPO/FPO AA
      090XX-098XX APO/DPO/FPO AE
      962XX-966XX APO/DPO/FPO AP

3.11.106.10.2  (01-01-2010)
Computer Condition Codes (CCCs)—Form 706

  1. CCCs B, D, G, L, O, R, W, Y, X, 3 and 7 are valid for Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

  2. See IRM 3.11.106.5, Computer Condition Codes, for specific definitions.

3.11.106.10.3  (01-01-2010)
Filing Requirements—Form 706

  1. Form 706, United States Estate (and Generation-Skipping Transfer) Tax Returns, are filed at CSPC.

  2. Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, must be filed for gross estates that exceed $2,000,000 for U.S. citizens and residents dying in 2009.

3.11.106.10.3.1  (01-01-2010)
Due Date—Form 706

  1. The following information pertains to the due date of Form 706 returns:

    If Then
    Decedents died after December 31, 1970 Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is due the day of the ninth calendar month after the decedent's death.

    Exception:

    If there is no numerically corresponding day in such ninth month

    		 The last day of the ninth month is the due date.
    For example, if the decedent died on May 31 of the current year, the due date is February 28 of the following year.

    Exception:

    If February 28 falls on a Saturday or Sunday the due date would be the following Monday.



    (See the due date table below.)

    Exception:

    Executors of Estates of decedents dying after October 22, 1986

    		 They must report all direct skips occurring at death on November 1987 or subsequent revision of Form 706.

  2. The following table lists the due dates of Form 706 returns:

    Month of Death Month Due
    January October
    February November
    March December
    April January
    May February
    June March
    July April
    August May
    September June
    October July
    November August
    December September

  3. The following table provides examples of due dates:

    If Then
    DOD is 07-31-09 Due date is 04-30-10
    DOD is 10-31-09 Due date is 08-02-10
    (because 07-31-2010 is a Saturday)
    DOD is 05-31-09 Due date is 03-01-10
    (because 02-28-2010 is a Sunday)

3.11.106.10.3.2  (01-01-2010)
Extension-Form 706 with Form 709 Attachment

  1. If a Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is received with an original Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, attached to it (for the same period in which the decedent died) with an approved extension of time to file, then:

    1. Pull the Form 709.

    2. Enter the received date, and note on the return, "Extension Form 706 granted to MMDDYY. Do not assess penalties" .

    3. Edit CCC "R" on the return so that a penalty will not be assessed on the Form 709 if the Form 706 posts after the Form 709. ( See IRM 3.11.106.15, Processing Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.)

3.11.106.10.3.3  (01-01-2010)
Form 706 Conversion

  1. All Form 706, United States Estate (and Generation-Skipping Transfer) Tax Returns, must be converted to the current year tax form revision. See Exhibit 3.11.106-9 and 3.11.106–10.

3.11.106.10.4  (01-01-2010)
Payment of Taxes—Form 706

  1. Tax is due when return is due, unless deferred payment under IRC Section 6161(a) or 6163 has been granted, or unless executor has properly elected to pay by installments under IRC Section 6166.

    Note:

    Check non-remit Form 706, United States Estate (and Generation-Skipping Transfer) Tax Returns, for presence of a remittance before releasing to Numbering.

  2. See Form 706, Lines 5 and 6 of Page 2 on 1985 and prior revisions, or Lines 3 and 4 on subsequent revisions.

  3. Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, (Part III) can be used to apply for an Extension of Time To Pay estate tax.

  4. Form 4768 (Part II) only applies to Extension of Time To File.

3.11.106.10.5  (01-01-2010)
Blocking Numbered and Unnumbered Forms 706

  1. All numbered Forms 706, United States Estate (and Generation-Skipping Transfer) Tax Returns, will be assigned Document Locator Numbers (DLNs) and blocked before sending to Document Perfection.

  2. All unnumbered Forms 706 will be numbered after Code and Edit.

3.11.106.10.6  (01-01-2010)
Preliminary Examination

  1. Expedite processing of estate tax returns so that executors can obtain discharge from personal liabilities and final distribution can be made to beneficiaries, examination of the returns is necessary.

3.11.106.10.6.1  (01-01-2010)
Signature—Form 706

  1. Examine for signature of executor indicated on return.

  2. If there are Co-Executors, it is sufficient for only 1 of the Co-Executors to sign the return.

  3. Letter 143C, Signature Missing (IMF/BMF), may be used to request executors missing signature.

  4. Use Action Code 225 for missing signature.

    If Then
    Signed jurat (declaration) is received Attach it to the return.
    No reply, or correspondence was undeliverable Enter CCC "3" in CCC area and input return.

3.11.106.10.6.2  (01-01-2010)
Attachments—Form 706

  1. Review and search attachments for any required information, (i.e., POA's, extensions, etc.).

3.11.106.10.6.3  (01-01-2010)
Amended or Supplemental Returns—Form 706

  1. The following information pertains to amended returns:

    Note:

    For Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, series returns, do not detach any attachments.

    If Then
    Return is marked, "Amended" , "Revised" , "Adjusted" , "Subsequent " , "Substitute" , "Corrected" , etc. See IRM 3.11.106.5.4.1, Amended Returns.
    Entity cannot be perfected:
    Document is unnumbered with remittance 1. Research IDRS.
    2. If no data found, use Action Code 320 and route to Entity on Form 4227, Intra-SC Reject or Routing Slip.
    Document is numbered Use Action Code 320 and route to Entity on Form 4227.

3.11.106.10.6.4  (01-01-2010)
Received Date—Form 706

  1. See IRM 3.11.106.8, Received Date, for information regarding received date editing.

  2. The following information pertains to the received date:

    If Then
    The received date has not been stamped on the first page of the return 1. The received date must appear on every Form 706, United States Estate (and Generation-Skipping) Tax Return.
    2. Enter in MMDDYY format near the dotted lines on Line 8.
    3. Make sure the envelope with the postmark date is stapled to the back of the return.
    4. Determine received date from return or attachments in the following priority ( See IRM 3.11.106.8, Received Date.)

3.11.106.10.6.5  (01-01-2010)
Date of Birth (DOB)

  1. The following information pertains to editing Date of Birth:

    If Then
    Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, for 1983 and subsequent revisions, the Date of Birth block is found on Page 1, Box 4 If Date of Birth is 1900 or earlier, enter "1900" for year and enter month and day.
    The Date of Birth is missing 1. Check death certificate for correct date.
    2. If correct date is unobtainable, leave blank or circle incorrect date.
    Date of Birth is found Edit in MMDDYY format.

3.11.106.10.6.6  (01-01-2010)
Date of Death (DOD)

  1. The following information pertains to editing the Date of Death which can be found on Form 706, Page 1, Box 5:

    If Then
    Date of Death is missing
    1. Check death certificate for Date of Death.
    2. Edit Date of Death in MMDDYY format.
    No death certificate is attached Research IDRS. If DOD cannot be found, continue processing.

3.11.106.10.6.7  (01-01-2010)
Prior Year Revisions—Form 706

  1. If the location of transcription lines on a prior year revision is different from the current year revision, change the transcription lines to correspond with the current year tax form revision. See Exhibits 3.11.106-9 and 3.11.106-10.

3.11.106.10.6.8  (01-01-2010)
County/State of Residence at Time of Death

  1. The decedent's residence at time of death is found on Page 1, Part 1, Box 3a.

  2. The following information pertains to county/state of residence at time of death:

    If Then
    Box 3a is blank and it cannot be determined after research of the death certificate Do not correspond with the executor for county/state. If it is missing from the death certificate, edit "Unknown" .
    Box 3a has other information (i.e., street address, PO Box, city, etc.) Circle out erroneous information in Box 3a. One or any combination of the following can be present:
    a. County
    b. State
    c. ZIP code
    Box 3a has a foreign (international) address See Exhibit 3.11.106-24, Foreign Country Codes, for the 2 digit Country Code to be edited in Box 3a.

3.11.106.10.7  (01-01-2010)
Mathematical Verification—Form 706

  1. Manual math verification of the return is not required. The computer will check the transcribed totals and any changes or corrections will be performed by ERS (Error Resolution System) examiners.

  2. Examination Branch will correspond for supporting schedules, if missing, for estates that have a Total Gross Estate of $2,000,000 and over for individuals who died after January 1, 2009.


Prev Next

More Internal Revenue Manual