3.12.106  Estate Tax Returns - Paper Correction Processing (Cont. 1)

3.12.106.2 
Processing Form 706-GS(D), Generation-Skipping Transfer Tax Return For Distributions

3.12.106.2.1 
Section 01-Form 706-GS(D)

3.12.106.2.1.3  (01-01-2014)
Field 01-B, Name Control

  1. This field cannot be blank. Must be the first four alpha characters of the last name in line 1a (name control of the trust). First position must be alpha. Valid characters after the first position may be alpha, hyphen or blank. The name control is invalid if there are intervening blanks between significant characters.

  2. Check for transcription errors in the name control field.

    1. If the name control on the return and Field 01-B (Name Control) do not agree or was transcribed incorrectly, change Field 01-B.

    2. If it is not an obvious error, research through INOLE/ENMOD for the SSN/EIN and NAMEI/NAMEB for the name line.

    3. If the correction entry is less than four characters, enter and circle the number of the remaining positions.

    4. Check Field 01-D (TIN Type) to ensure the correct TIN type was entered. Correct the field if necessary.

3.12.106.2.1.3.1  (01-01-2014)
Check Digits

  1. The name control is being cross-checked against the Entity Index File (EIF). When there is a match against the EIF, you will get check digits in this field. If there is no match, the name control will be shown in this field.

    1. Check digits will be invalid if the first two positions are not blank and if the third and fourth positions are not alpha characters. The computer will do additional checks for the validity of these letters.

    2. If the check digits are invalid, enter the name control (first four letters of the taxpayer's surname) in Field 01-B.

3.12.106.2.1.3.2  (01-01-2014)
Name Control Underprint

  1. If the transcribed name control does not match the name control for the transcribed SSN on the Entity Index File (EIF), there will be an underprint to Field 01-B.

  2. This field will underprint with "XXXX" when there is no match to the NAP.

  3. The name control underprint will be removed when the following occurs:

    1. The name control underprint and the entry in Field 01-B agree.

    2. The entity underprint field contains a "1" .

  4. When the name control on the return does not match the name control on the EIF:

    1. Compare the entries in Field 01-B and Field 01-C to the name control, the taxpayer's last name, and the SSN/EIN on the return.

    2. If the name control is edited or transcribed incorrectly, correct Field 01-B and/or return.

    3. If the SSN/EIN is edited or transcribed incorrectly, correct Field 01-C and/or return.

    4. If the SSN/EIN is transcribed correctly and the name control is invalid, research, using INOLE/ENMOD for the SSN/EIN and NAMEI/NAMEB for the name line.

  5. If the SSN/EIN is correct, and the reason why the name control is invalid is obvious (misspelling), correct Field 01-B and the return. If the reason is not obvious, see below.

    1. If the SSN/EIN is not correct, but a correct SSN/EIN is found through NAMEI/NAMEB, check INOLE/ENMOD, using definer V and/or W if SSN, for an established (or pending) account. If none, reject with AC 3. If an account is established or pending, correct Field 01-C on the register and the return.

    2. If a correct SSN/EIN is not found through NAMEI/NAMEB, use AC 3 to send to Entity for correspondence.

    3. If Field 01-B underprints with "XXXX" , or the taxpayer's last name has changed for whatever reason, reject using AC 3 to Entity. REJECTS: If TIN is an SSN, input a TC 000 to establish the account or a TC 013 to change the taxpayer's name.

    4. Once a name change is returned from Entity, enter "1" in Field 01-K (Entity Underprint Code).

    5. If, after research, the name control (Field 01-B) and the month of the tax period (Field 01-E) are correct and the underprints differ, enter a "3" in Field 01-K (Entity Underprint Code) to clear both underprints.

  6. Suspense Correction:

    1. If the register returns on loop as having an invalid SSN/EIN, use AC 9 to re-establish the account as a raw register.

    2. After the account is reestablished, forward to Entity.

3.12.106.2.1.4  (01-01-2014)
Field 01-C, Employer Identification Number (EIN)/Social Security Number (SSN)

  1. This field may carry an EIN or SSN for Form 706-GS(D).

  2. Nine numeric characters must be present, all nines or zeros will be invalid.

  3. If this field is in the EIN format (nn-nnnnnnn), it must not begin with 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89.

  4. If Field 01-C is invalid, examine the return and attachments.

    1. If found, enter correct number in Field 01-C.

    2. If correct EIN or SSN cannot be found, research IDRS for valid numbers.

    3. If a valid number cannot be found, reject to Entity Control to secure an EIN or a temporary SSN. Enter the corrected or temporary number assigned by Entity using AC 6.

    4. If the return has been to Entity (i.e., SSN is written in a color used by Entity), do not reject back to Entity.

3.12.106.2.1.5  (01-01-2014)
Field 01-D, TIN Type

  1. Form 706-GS(D) may carry an EIN or SSN.

    1. Those returns using an EIN, TIN TYPE must be "2" .

    2. Those returns using an SSN, TIN TYPE must be a "0" .

  2. Correct the identifying number on the return and enter the correct TIN Type with AC 6.

  3. Check 01-D (TIN TYPE) to ensure the correct TIN TYPE was entered. Correct the field if necessary.

3.12.106.2.1.6  (01-01-2014)
Field 01-E, Tax Period

  1. The tax period cannot be greater than the current processing date or earlier than 198612. (The tax was instituted as part of the Tax Reform Act of 1986.) The tax period month digit will always be 12.

  2. All characters must be numeric in YYYYMM format.

  3. If invalid, check return and attachments for correct tax period and make necessary change using AC 6.

3.12.106.2.1.6.1  (01-01-2014)
Tax Period Underprint (generated)

  1. The tax period underprint is from the Entity Index File (EIF).

  2. The tax period underprint occurs when the transcribed month does not agree with the month (prior or current) for the TIN on the EIF. Field 01-E will underprint with the current month when neither matches.

  3. Compare the TIN on the return with Field 01-C.

    1. If the TINs do not agree, change Field 01-C to agree with the return and enter the appropriate code in the Entity Underprint Field (Field 01-K).

    2. If the TINs agree, compare the tax period on the return with Field 01-E. If the tax period on the return does not agree with Field 01-E, change Field 01-E to agree with the return.

  4. If the TIN type changes (the SSN is changed to an EIN, or an EIN is changed to an SSN), Field 01-D also needs to be changed.

3.12.106.2.1.7  (01-01-2014)
Field 01-F, Received Date

  1. This date must be present on all Forms 706-GS(D) in YYYYMMDD format. It cannot be later than the processing date or earlier than the tax period (Field 01-E).

  2. The received date field is invalid if:

    • The month (fifth and sixth digits) is other than 01 through 12, or

    • The day (seventh and eighth digits) is other than 01 through 31 for the months 01, 03, 05, 07, 08, 10, or 12; 01-30 for the months 04, 06, 09, or 11; 01-28 for the month 02; 01-29 for the month 02 during leap year.

    • Other than a numeric is present in the field.

  3. If the received date is missing or illegible, enter a date using the following order or priority:

    1. Earliest legible postmark date of the U. S. Post Office or a Private Delivery Service (i.e., Federal Express), or a foreign postmark date.

      Note:

      If an envelope is not attached, use the postmark date stamped on the face of the return

      .

    2. Service Center Automated Mail Processing System (SCAMPS) digital date.

    3. Revenue Officer's or other IRS official's Signature Date.

    4. Signature Date, if within the current year (unless other information indicates signature date is invalid).

      Exception:

      Do not use the Signature Date on Prior-Year Returns.

    5. Julian Date (DLN) minus 10 days.

      Note:

      Any references to current date and/or minus 10 days only pertain to Code and Edit instructions when determining the received date.

    6. Current date minus 10 days.

  4. If a return was identified as unprocessable and the taxpayer was contacted for additional information, do not change original received date, but also enter the correspondence received date (Field 01-M).

  5. If Field 01-F is invalid, Field 01-H (Penalty and Interest (P&I) Code) has a "1" , ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Field 01-H.

  6. If more than one date is stamped, use only the earliest date. Circle out all others. If the date is incorrect, enter the correct date with AC 6.

  7. When processing an early-filed return, change the received date to the first date after the tax period.

3.12.106.2.1.8  (01-01-2014)
Field 01-G, Computer Condition Codes (CCCs)

  1. The valid condition codes for Form 706-GS(D) are D, F, G, O, R, W, X, 3 and 7. If other than these, Field 01-G will asterisk.

  2. Enter the CCCs in the upper left corner of the return.

  3. If there is a transcription error, correct it by lining out Field 01-G and inserting the correct code above it. Use AC 6.

  4. If the return is coded incorrectly, determine the correct code and enter it on the return and error register. Correct with an AC 6.

3.12.106.2.1.8.1  (01-01-2014)
CCC "D" , Reasonable Cause for Failure to Pay Taxes Timely

  1. Enter CCC "D" on the return when the taxpayer has provided (letter, attachment, etc.) an acceptable reason for:

    • A timely-filed balance due return but not fully paid.

    • A late-filed balance due return without payments being made.

    • A return is stamped: "DO NOT ASSESS FAILURE TO PAY PENALTY" .

  2. The following instructions apply for handling of all Forms 706 and 709 (Estate and Gift Tax) 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 the Form 4227, Intra-SC Reject or Routing Slip, and route the Form 4227 to Cincinnati Compliance Services, Estate and Gift Tax Campus Operation.

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

  3. 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. 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. Enter the appropriate CCC on the return per Cincinnati Compliance Services, Estate and Gift Tax Campus Operation instructions.

    2. Continue normal processing of the return.

  5. Do not enter "D" in the following instances:

    • Pre-computed penalty is shown on return, and/or,

    • CCC "7" (Reasonable Cause Denied) is present.

  6. Enter CCC "D" when the taxpayer notates on the return a natural disaster (i.e., flood, hurricane, tornado, earthquake) and the return shows a tax liability.

  7. The following table contains Reasonable Cause Criteria for determining late filing and/or late payment:

    Note:

    This table is not all inclusive as there could me many other reasons and factors to consider. Cincinnati Compliance Services, Estate and Gift Tax Campus Operation will make the determination regarding reasonable cause and assess any penalty(ies), etc., against the account, if applicable.

    Reason Factors To Consider
    Death, serious illness or unavoidable absence of the taxpayer or a member of the immediate family.
    1. Death or serious illness of taxpayer, spouse, sibling, parents, grandparents or children.

    2. Death or serious illness of taxpayer that had sole authority to sign the return, make the deposit or pay the tax.

    • The relationship of the taxpayer to the other parties involved

    • The date of death

    • The dates, duration and severity of illness

    • How the event prevented compliance

    • If other business obligations were impaired

    • If tax duties were attended to promptly when the illness passed or within a reasonable period of time after a death or absence.

    Destruction by fire or other casualty of the taxpayer's place of business or records
    1. Taxpayer exercised ordinary business care and prudence, but due to circumstances beyond the taxpayer's control, they were unable to comply with the law.

    • Timing

    • Effect on the taxpayer's business

    • If the taxpayer complied when it became possible

    Delay due to erroneous information given by an employee of the IRS
    • Notation of taxpayer's question to the Service

    • Documentation regarding the advice provided by the Service

    • Information regarding the office and method by which the advice was obtained (written/oral)

    • The date the advice was provided

    • The name of the employee who provided the information

    Delay caused by or related to civil disturbance that was outside the taxpayer's control  
    Timely requested forms not furnished timely
    • The date the forms were requested

    • Information regarding the office and method by which the forms were requested (written/oral)

    • The date the forms were received

    Advice or aid sought in preparing return from IRS representative or office on or before due date but through no fault of the taxpayer, they were unable to see the representative
    • Notation of advice or aid sought from IRS representative or office

    • Information regarding the office and method by which the advice was requested

    • The date the advice or aid was sought

    • The name of the representative the taxpayer was unable to see

    Taxpayer was unable to determine amount of deposit or tax due for reasons beyond the taxpayer's control  

3.12.106.2.1.8.2  (01-01-2014)
CCC "F" - Final Return

  1. Edit CCC "F" when the return or attachment(s) indicate this is the final return from the taxpayer by such statements as "final" etc.

3.12.106.2.1.8.3  (01-01-2014)
CCC "G" - Amended Return

  1. Edit CCC "G" on returns marked "Amended" , "Superseding" , "Duplicate" , "Corrected" , "Supplemental" , etc. Computer condition codes "W" and "3" can be used with a "G" code.

  2. If the return is an amended return, delete all sections beyond received date (Field 01-F), except correspondence received date (Field 01-J), and the entity underprint code (Field 01-K), with AC 6. Delete all other sections with AC 4.

  3. If the return is not an amended return, delete "G" code from Field 01-G with AC 6. Check remaining fields and enter correct data with AC 6. Enter additional sections with AC 5.

3.12.106.2.1.8.4  (01-01-2014)
CCC "O" - Module Freeze

  1. Enter CCC "O" if a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (IGR), is attached to the return. These indicate that a presettlement manual refund was made.

3.12.106.2.1.8.5  (01-01-2014)
CCC "R" - Reasonable Cause for Delinquency

  1. CCC R is edited when an acceptable reason is provided by the taxpayer for the delay in filing a return. Such reasons should show that the taxpayer exercised usual or reasonable business care and that the conditions were generally beyond the control of the taxpayer. See IRM 3.12.106.3.1.8.1, CCC "D" - Reasonable Cause for Failure to Pay Taxes Timely, IRM 3.12.106.3.1.8.5, CCC "R" - Reasonable Cause, and IRM 3.12.106.3.1.8.10, CCC "7" - Reasonable Cause Denied, for reasonable cause criteria.

  2. Do not use CCC "R" if CCC "7" (Reasonable Cause is Denied) is present.

    Note:

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

  3. The following instructions apply for handling of all Forms 706 and 709 (Estate and Gift Tax) 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 the Form 4227, Intra-SC Reject or Routing Slip, and route the Form 4227 to the Cincinnati Compliance Services, Estate and Gift Tax Campus Operation.

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

    If Then
    Form 706 is received with Form 709 attachment (extension request) Edit Computer Condition Code (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.

  4. 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.

  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 Computer Condition Code on the return per Exam's instructions.

    2. Continue normal processing of the return.

  6. Edit Computer Condition Code (CCC) R when the taxpayer notates on the return a natural disaster (i.e., flood, hurricane, tornado, earthquake).

3.12.106.2.1.8.6  (01-01-2014)
CCC "U" - Unprocessable Document

  1. When CCC "U" is entered by Code and Edit, it will cause the return to print on the reject register for appropriate action. This code will not appear on the register.

3.12.106.2.1.8.7  (01-01-2014)
CCC "W" - Cleared by Statute

  1. Edit CCC "W" when the return has been stamped "Cleared by Statute" and enter it in Field 01-G with AC 6.

3.12.106.2.1.8.8  (01-01-2014)
CCC "X" - Return Settlement Frozen

  1. Edit CCC "X" when taxpayer indicates that excess remittance with return or overpayment be applied to another account.

  2. Enter "X" in Field 01-G with AC 6.

3.12.106.2.1.8.9  (01-01-2014)
CCC "3" - No Reply Received/Suppress Credit Interest

  1. Edit CCC "3" when no reply is received (i.e., taxpayer fails to reply) to correspondence. The CCC "3" , when posted to the Master file with a TC-150, suppresses credit interest. Enter "3" in Field 01-G (Form 706-GS(D)) with AC 6.

3.12.106.2.1.8.10  (01-01-2014)
CCC "7" - Reasonable Cause Statement Denied

  1. Enter CCC "7" when the taxpayer's statement for failing to file or failing to pay taxes timely is not acceptable. Initiate Letter 854C, Penalty Waiver or Abatement Disallowed/Appeals Procedure Explained, to notify the taxpayer of the denial.

    Note:

    This instruction does not apply to Form 706 (Estate Tax) or 709 (Gift Tax) series tax returns.

  2. CCC "7" cannot be used with CCC "D" or CCC "R" .

  3. The Cincinnati Compliance Services, Estate and Gift Tax Campus Operation at CSPC will make all determinations of reasonable cause for all Forms 706 (Estate Tax) and 709 (Gift Tax) series returns.

  4. 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 the Cincinnati Compliance Services, Estate and Gift Tax Campus Operation's instructions.

    2. Continue (normal) processing of the return.

      Note:

      Unless the Cincinnati Compliance Services, Estate and Gift Tax Campus Operation has determined that an on-site visit by Compliance personnel is needed, there will be no need to determine whether a CCC 7 is appropriate or not. A representative from International Compliance (Estate and Gift Tax Campus Operation) will make determination(s) regarding reasonable cause (if necessary) for international address returns.

3.12.106.2.1.9  (01-01-2014)
Field 01-H, Penalty and Interest (P&I) Code

  1. Code and Edit will enter P&I code "1" at the top of the form if prepaid penalty is present and the received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Valid entries are "1" and/or blank.

  2. If only precomputed interest is shown, enter CCC "R" . The CCC "R" , if present, will override the P&I code "1" regarding the delinquency penalty only.

  3. Field 01-H must be blank or "1" . If "1" is present, the received date (Field 01-F) must be ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ asterisk. Figure 3.12.106-8.

    Figure 3.12.106-8

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    AC 6 Input on Register to Accept P&I Code (Field 01-H)

3.12.106.2.1.10  (01-01-2014)
Field 01-I, CAF Indicator

  1. Valid indicator must be blank or numeric (1 through 4 and 7). Only one indicator can be used.

  2. Check the field with the return. If the data has been transcribed incorrectly, enter the correct data with AC 6. The correct CAF codes are:

    • "1" One person receives a notice, but no one receives a refund.

    • "2" Two people receive notices, but no one receives a refund.

    • "3" One person receives a notice, and one person receives a refund.

    • "4" Two people receive notices and one person receives a refund.

    • "5" and "6" are not used.

    • "7" One person receives a refund but no one receives notices.

  3. If the POA does not authorize refunds or notices, a numeric code is not necessary on the return.

3.12.106.2.1.11  (01-01-2014)
Field 01-J, Correspondence Received Date

  1. Must be in YYYYMMDD format, or blank.

  2. This field will asterisk if the following conditions exist:

    • Is not all numeric;

    • Date check is not met (i.e., The month (fifth and sixth digits) is other than 01 through 12, OR the day (seventh and eighth digits) is other than 01-31 for the months 01, 03, 05, 07, 08, 10, or 12; 01-30 for the months 04, 06, 09, or 11; 01-28 for the month 02; 01-29 for the month 02 during a leap year);

    • The date is earlier than or equal to the return due date;

    • The date is equal to or earlier than the received date (Field 01-F);

    • The date is later than the processing date.

    • The field contains all nines.

  3. When a return has been identified as unprocessable and the taxpayer has been contacted, the date the reply is received with the necessary information is the correspondence received date.

  4. Both the original received date (Field 01-F) and the correspondence received date must be shown.

  5. The correspondence received date is shown in left margin.

  6. DO NOT enter a correspondence received date in the following situations:

    • The correspondence reply was received prior to due date of the return.

    • The correspondence was required because of an IRS processing error.

  7. If no response is received, enter CCC "3" in Field 01-G.

  8. If CCC "R" is applicable, edit CCC "R" on the return and enter in this field using AC 6.

3.12.106.2.1.12  (01-01-2014)
Field 01-K, Entity Underprint Code

  1. This field will be used to clear the name control underprint and tax period underprint, when the underprint and the error register field do not agree.

  2. After the procedures in IRM 3.12.106.2.1.3 through IRM 3.12.106.3.1.6.1 are followed and the error register field and the underprint do not agree, enter the appropriate code as follows:

    1. Code 1 - Clear name control underprint

    2. Code 2 - Clear tax period underprint

    3. Code 3 - Clear both underprint fields

  3. If an invalid code or the correct code is not used, the record will loop with no change to the underprint fields. This field will never asterisk.

3.12.106.2.1.13  (01-01-2014)
Field 01-L, Taxpayer Notice Codes (TPNCs)

  1. Taxpayer Notice Codes (TPNCs) can be input only as correction data using AC 1. Enter correct tax amount to left of taxpayer's figures and TPNC in upper left corner of return.

  2. The codes will appear in this field on the loop (correction run) when entered on raw and another error existed. When this occurs, correct any other invalid condition, but not this field. The use of another AC will cause this field to be blanked on the next loop.

  3. Correct by using AC 1 and the proper TPNC.

    • TPNC 55 - We found an error was made in the computation of the taxable amount on Line 5.

    • TPNC 56 - We found an error was made in the computation of the gross GST Tax on Line 7.

    • TPNC 57 - We found an error was made in the computation of the allowable credit on Line 10.

    • TPNC 65 - We found an error was made in the computation of Line 11, Net GST Tax (2003 and prior returns).

    • TPNC 66 - We found an error was made in the computation of the balance due or the overpayment amount.

    • TPNC 83 - We found an error was made in the computation of your total tax amount.

    • TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Resolution will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanations on the notice before mailing to taxpayer. TPNC 90 is not valid with any other TPNC.

  4. A maximum of three (3) codes may be entered.

3.12.106.2.1.14  (01-01-2014)
Field 01-M, Refund Code

  1. Manual Refund of $1,000,000.00 or more.

  2. The only valid code is "1" . The field must be otherwise, blank.

  3. When a refund code of "1" is both present and correct for Field 01-M, CCC "O" must be present in Field 01-G.

  4. When an overpayment of $1,000,000.00 or more is present on a Reject Register, follow the procedures in IRM 3.12.38, BMF General Instructions.

  5. If an overpayment of $1,000,000.00 or more is present on an Error Register, the return is to be rejected using AC "3" and routed to Rejects for processing. If a manual refund for any amount is issued, and CCC "O" is present, enter code "1" even if the refund is less than $1,000,000.00.

3.12.106.2.1.15  (01-01-2014)
Field 01-N, Preparer's SSN or PTIN (Preparer's Tax Identification Number)

  1. The Preparer's Social Security Number (SSN) (2008 and prior revisions) or Preparer Tax Identification Number (PTIN) is located to the right of the Preparer's signature in the PTIN box (Preparer's SSN or PTIN box for 2008 and prior revisions) at the bottom right corner of Form 706-GS(D) and Form 706-GS(T).

  2. Data may or may not be present in Field 01-N.

    Note:

    If the Paid Preparer's information is present, either Field 01-N or Field 01-O will have an entry. Only one of these fields is required.

  3. Field 01-N is invalid if any of the following conditions are present:

    • The field is other than nine numeric digits

      Exception:

      If Field 01-N contains a PTIN, the first character in the PTIN must begin with the alpha "P" . The range for a valid PTIN is "P00000001" through "P99999998" . A "P" followed by all zeroes or all nines is not valid.

    • The field is not all blank

    • The field is all zeros

    • The field is all nines

  4. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

    2. If invalid and unable to determine a valid entry, delete Field 01-N and continue processing.

    3. If the return contains both an SSN and a PTIN, accept the SSN and continue processing.

3.12.106.2.1.16  (01-01-2014)
Field 01-O, Firm's EIN

  1. The Firm's EIN (EIN for 2008 and prior revisions) is located below the Preparer's PTIN box (Preparer's SSN or PTIN box for 2008 and prior revisions) at the bottom right corner of Form 706-GS(D) and Form 706-GS(T).

  2. Data may or may not be present in Field 01-O.

    Note:

    If the Paid Preparer's information is present, either Field 01-N or Field 01-O will have an entry. Only one of these fields is required.

  3. Field 01-O is invalid if any of the following conditions are present:

    • The field is less than nine numeric digits

    • The field is not all blank

    • The field is all zeros

    • The field is all nines

    • The field must not begin with 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89 if it is in the EIN format (nn-nnnnnnn).

  4. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

    2. If invalid and unable to determine a valid entry, delete Field 01-O and continue processing.

3.12.106.2.1.17  (01-01-2014)
Field 01-P, Preparer's Phone Number

  1. The Paid Preparer's Phone Number is located below the Firm's EIN (EIN for 2008 and prior revisions) at the bottom right corner of Form 706-GS(D) and Form 706-GS(T).

  2. Field 01-P is invalid if other than alpha, numeric, or blanks are present.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

    2. If invalid, delete Field 01-P and continue processing.

3.12.106.2.2  (01-01-2014)
Section 02 - Form 706-GS(D)

  1. Section 02 alpha field designators, line numbers, field lengths and titles. Section 02 has variable length fields.

    Note:

    All Forms 706-GS(D) with a foreign address will be processed at CSPC.

    Alpha Field
    Designator
    Line
    Number
    Field
    Length


    Title
    A Line 1a 35 "In Care of" Name
    B Line 2b 35 Foreign Address
    C Line 2b 35 Street Address
    D Line 2b 22 City/Major City Code
    E Line 2b 2 State Code
    F Line 2b 12 ZIP Code

3.12.106.2.2.1  (01-01-2014)
Field 02-A, "In Care of" Name

  1. Field 02-A is located in the Entity Section of the return.

  2. Field 02-A has 35 positions and the valid characters are alpha, numeric, ampersand, dash, slash or percent (%).

    Note:

    The first character of the "in-care-of" name must be alpha or numeric.

  3. Field 02-A is invalid if any of the following conditions are present:

    • The first position is % (percent) and the second position is not blank, or

    • The first position is blank, or

    • The first character of the "in-care-of" name is not alpha or numeric, or

    • There are two consecutive blanks between significant characters.

  4. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

    If Then
    A % (percent) is in the first position 1. Compare the information on the register against the information on the return to ensure whether there is a blank in the second position.
    2. If not blank, enter the "in-care-of" name beginning with an alpha or numeric in Field 02-A, using AC 6.
    A blank is in the first position 1. Compare the information on the register against the information on the return.
    2. If the information on the return is different from that of the register, draw a line through the information in Field 02-A and edit the "in-care-of" name beginning with an alpha or numeric in above the lined out entry in Field 02-A, using AC 6.
    3. If the information is correct as written, edit an AC 7 to the left of the section.
    The first character of the "in-care-of" name is not alpha or numeric 1. Compare the information on the register with the information on the return.
    2. If the information is different, draw a line through the information in Field 02-A, and write the "in-care-of" name in Field 02-A, using AC 6.
    3. If the information on the return is correct as written on the return, edit AC 7 to the left of the section.
    Two consecutive blanks are present between significant characters, 1. Compare the register against the information on the return.
    2. If the information on the return is different from the information on the register, draw a line through the entry in Field 02-A and write the correct information immediately above it.
    3. If the information on the register is the same as the information on the return, use AC 7.

3.12.106.2.2.2  (01-01-2014)
Field 02-B, Foreign Address

  1. Field 02-B is located in the Entity Address Section of the return.

    1. The computer will check for a presence in this field if the state code field (Field 02-E) contains a period/space (. ).

    2. Field 02-B should not be present on "G" coded short-length returns.

  2. Valid characters are alpha, numeric and special characters.

  3. Field 02-B generates as an error when the state code field contains a period/space (. ) and any of the following conditions are present:

    • The first position is blank

    • Any character follows two consecutive blanks.

    • There are more than 35 characters present in the field.

      Note:

      ISRP is instructed to input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

  4. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

      If And Then
      A foreign address is present in Field 02-B (Foreign Address)   Check the register against the return to ensure the address is truly a foreign address.
      If it is confirmed the address on the return is a foreign address 1. A valid Foreign Country Code must be present in Field 02-D (City). If missing, correct Field 02-D, with an AC 6.

      Note:

      See Exhibit 3.12.106-4 for a list of the valid Foreign Country Codes.


      2. Delete Field 02-F (Zip code), if present, using AC 6.
      If it is confirmed the address on the return is a domestic address 1. Enter the street address information in Field 02-C.
      2. Also enter the City (Field 02-D) and State (Field 02-E)*, and Zip code (Field 02-F) using AC 6.

      Reminder:

      *The period/space (. ) in Field 02-E (State) must be deleted if this is NOT a foreign address. Correct using AC 6.

      A foreign address is NOT present in Field 02-B (Foreign Address)   Check the register against the return to ensure whether the address was a domestic address.

      Caution:

      Do not use Field 02-B for domestic street addresses. The period/space in Field 02-E (State) will alert the computer to search for a foreign address (in Field 02-B and the Foreign Country Code in Field 02-D (City)).

      If the address on the return is a domestic address, 1. Draw a line through the period/space (. ) entry in Field 02-E (State) and enter the correct state code, using AC 6.
      2. Enter the appropriate information in Fields 02-C (Street), 02-D (City), and 02-F (Zip code), using AC 6.
      If the address on the return is truly a foreign address, 1. Enter the foreign street address in Field 02-B, using AC 6.

      Reminder:

      ISRP is instructed to use the Street Address line (Field 02-C) as a second address line, if needed.


      2. Also enter the valid Foreign Country Code in Field 02-D (City), using AC 6.

      Note:

      See Exhibit 3.12.106-4 for a list of the valid Foreign Country Codes.

      The Foreign Country Code is missing or incorrect   1. Compare the information on the register to the information on the return.
      2. See Exhibit 3.12.106-4 for a list of the valid Foreign Country Codes.
      3. Add the Foreign Country Code in Field 02-D (City), if missing, using AC 6.
      4. To correct, draw a line through the information in Field 02-D and write the correct information above the lined-out entry, using AC 6.
      A foreign address is present in Field 02-B and a Zip code is present in Field 02-F   1. Verify the information on the register against the return.
      2. If the return truly contains a foreign address, line through the entry on Field 02-F (Zip code) of the register.
      3. Write the Foreign Country Code in Field 02-D (City).
      4. Use AC 6.

  5. This field will asterisk (*) if other than specified above.

  6. For additional information, see Exhibit 3.12.106-3, U.S. Possessions State Abbreviations and ZIP Codes.

3.12.106.2.2.3  (01-01-2014)
Field 02-C, Street Address

  1. First position must not be blank. The first position can only be alpha or numeric characters.

  2. Valid characters are alpha, numeric, blank, hyphen, and slash.

  3. There cannot be two consecutive blanks followed by valid characters.

  4. If Field 02-D, City, contains a Major City Code (MCC), a street address must be present. (If an MCC is used and no address is present, enter the city in "city format" , not in MCC format.) Check returns and attachments if the address is not present.

    1. If address is not found, research using INOLE/ENMOD.

    2. If an address is still not found, reject using AC 3 and attach research. Indicate "No address" on Form 4227 and route to Entity.

  5. This field will asterisk if other than specified above. Correct this field accordingly.

    Reminder:

    If inputting a foreign address, this field may be used as a second address line for entering the foreign city, province, and postal code.

  6. For additional information, see Exhibit 3.12.106-4, Foreign Country Codes, and Exhibit 3.12.106-5, Province, State and Territory Abbreviations.

3.12.106.2.2.4  (01-01-2014)
Field 02-D, City/Major City Code

  1. The invalid conditions for Field 02-D are as follows:

    • First position cannot be blank.

    • Second and third positions cannot both be blank.

    • There cannot be two consecutive blanks within significant data.

    • Valid characters are alpha, and blank.

  2. When a Major City Code has been used:

    • Field E (State code) must not be present;

    • Field C (Street Address) must be present; and,

    • Field F (Zip code) must be compatible with Major City Code.

  3. If a valid MCC cannot be used, then the entire city must be input with AC 6. When the entire city name is used, Field 02-E (State) must be present.

  4. This field will asterisk if the MCC does not agree with the first three digits of the ZIP code. Field 02-F (Zip code) will also asterisk.

  5. The Zip code will require ZIP code look-up if the Major City has multiple ZIP codes. Correct Field 02-F.

  6. See Document Code 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for valid MCC and ZIP codes. Refer to Exhibit 3.12.106-3, U.S. Possessions State Abbreviations and ZIP Codes, for use with address corrections.

  7. IMPORTANT: If there is a foreign address, the country must be present in this field. Do not abbreviate the name of the country. Refer to Exhibit 3.12.106-4, Foreign Country Codes, for a list of the valid foreign country codes.

3.12.106.2.2.4.1  (01-01-2014)
City - Special to Foreign Address

  1. If the Foreign Address is present, the City Error Indicator will error for the following reasons:

    • The Foreign Country Code is blank.

    • The Foreign Country Code is invalid.

    • The Foreign Country Code is present, but the remaining positions in Field 02-D (City) are not blank.

    • The City field is blank.

3.12.106.2.2.5  (01-01-2014)
Field 02-E, State

  1. If present, this field must contain a state code of 2 alpha characters.

  2. This field will asterisk if the state is not valid. Enter correct state code in Field 02-E.

  3. If a state is present as well as a MCC in Field 02-D, this field will asterisk.

    1. If the MCC is correct, delete Field 02-E.

    2. If it is incorrect or cannot be determined, enter the complete city name in Field 02-D.

  4. If the state code does not agree with the first three (3) digits of a ZIP code, Field 02-F will asterisk.

    1. If the state code is not correct, draw a line through that entry and enter the correct state code above Field 02-E.

    2. If Field 02-E is correct, enter ZIP code in Field 02-F.

  5. IMPORTANT: Field 02-E must be period/space (. ) if address is foreign.

3.12.106.2.2.6  (01-01-2014)
Field 02-F, ZIP Code

  1. The valid characters for ZIP codes are numerics and must be present if Section 02 is present.

  2. This field must be present and contain 5, 9, or 12 numerics. This field will asterisk if other than specified above. Correct accordingly.

  3. If valid ZIP code is not shown on return, refer to Document 7475 (State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries) or ZIP code directory.

  4. If the first three digits of the ZIP code do not agree with the major city code or state code, Field 02-F will asterisk, as well as Field 02-D or 02-E. Correct the appropriate fields using AC 6.

  5. If only the first three digits of the ZIP code can be determined, enter "01" for the fourth and fifth digits.

  6. IMPORTANT: Field 02-F must be blank if the address is foreign.

3.12.106.2.3  (01-01-2014)
Section 03 - Form 706-GS(D)

  1. Section 03 alpha field designators, line numbers, field lengths, and titles are listed below. This section is entered in dollars and cents and all fields are positive, except for Fields 03-C, 03-D, and 03-J which can be positive or negative. All fields are transcribed from Page 1, Part II. Section 03 must be present, except for a "G" coded return.

    Note:

    The error register remained unchanged to accommodate prior year versions of the form. This is to permit additions/corrections of the information from prior year versions of the forms.

  2. Check for transcription errors. The computer-checked fields in this section will underprint if the taxpayer and computer figures differ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ figures ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Alpha Field
    Designator
    Line
    Number
    Field
    Length


    Title
    A Line 3 12 Total Transfers (add amounts in column c) (previously Tentative Total Transfer Amt.)
    B Line 4 12 Adjusted Allowable Expenses (see instructions) (previously "Adjusted Allowable Expense Amt." )
    C Line 5 12 Taxable Amount (subtract line 4 from line 3) (previously Taxable Amt.)
    Taxable Amt. Computer
    D ----- 12 Valid through December 2004 Only - old Line 7 "Generation-Skipping Transfer Tax (multiply line 5 by line 6)" (previously
    "Generation-Skipping Transfer Tax (Computer)" . (These fields were previously known as "Gross GST Tax" and "Gross GST Tax (Computer)" for tax periods ending prior to January 1, 2005.)
    E ----- 12 Creditable State GST Amt. (valid through December 31, 2004, only). (This was previously the Line 8 amount on January 2003 (and prior) Form 706-GS(D) revisions.)
    F ----- 12 Generation-Skipping Transfer tax (previously "GST Limitation Amt." )
    Generation-Skipping Transfer tax (Computer) (previously GST Limitation Amt.) Computer) (valid through December 31, 2004, only). (This was previously the Line 9 amount on January 2003 (and prior) Form 706-GS(D) revisions.)
    G ----- 12 Allowable Credit Amt.
    Allowable Credit Computer (valid through December 31, 2004, only)

    Note:

    This was previously the Line 10 amount on January 2003 (and prior) Form 706-GS(D) revisions.

    H Line 7 12 Multiply Line 5 by Line 6 (Tax Years 2010 and 2011)

    Note:

    Previously was "Generation-Skipping Transfer Tax" or "Net GST Tax" )
    Net GST Tax Computer (valid through December 31, 2004, only) This used to be the Line 11 amount on January 2003 (and prior) Form 706-GS(D) revisions.

    I Line 8 12 Payment, if any, made with Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns (previously "7004 Payment Amt" (Tax Years 2004 through 2008)).

    Note:

    This was previously the Form 2758, Application for Extension of Time To File Certain Excise, Income, information and Other Returns, amount on Line 12 (January 2003 (and prior) Form 706-GS(D) revisions).

    J Line 9/10 12 Tax Due/Overpayment (Tax Years 2010 and 2011) (also referred to as "Balance Due/Overpayment" .

    Note:

    This was previously the Line 13/14 amount on January 2003 (and prior) Form 706-GS(D) revisions.

        12 Balance Due/Overpayment Computer

  3. If the Form 706-GS(D) contains no entries or $0.00 amounts in Part III (Tax Computation), check to determine whether a copy of Form 706-GS(D-1), Notification of Distribution From a Generation-Skipping Trust, is attached to the return.

  4. If attached, compare the General and Distributions Information in Parts I and II of the 706-GS(D-1) against the corresponding information on the Form 706-GS(D). If the amounts are different, perfect and continue processing the Form 706-GS(D).

  5. If, after comparing the two forms, there are no changes to the original entries or $0.00 amounts in Part III, treat as an unprocessable document.

    1. Reject the Form 706-GS(D) with AC 3.

    2. Attach Form 4227, Intra-SC Reject Routing Slip, to the return, explaining that the Form 706-GS(D) is unprocessable because it contained zeros for ALL distributions.

    Note:

    Trustees are required to report taxable distributions on Form 706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust. The law requires that anyone who receives a taxable distribution from a trust must file Form 706-GS(D). Taxpayers are not required to file Forms 706-GS(D) if the inclusion ratio found in Part II, Line 3, is zero ($0.00) for ALL distributions reported to him/her.

  6. If Form 706-GS(D-1) is not attached to Form 706-GS(D), continue processing the return with the available information.

  7. If the return is unprocessable (or the information submitted was insufficient for processing) because it was reported on an obsolete version of Form 706-GS(D), treat the return as "unprocessable" and reject with an AC 3.

    Note:

    A current version of this form should include Part I (General Information), Part II (Distributions), and Part III (Tax Computation).

3.12.106.2.3.1  (01-01-2014)
Field 03-A, Total Transfers

  1. This field is transcribed from Line 3 (Part II (Distributions)). This is the total amount from Line 3, Column f, of all attached Copy(s) A (Form 706-GS(D-1)).

    Note:

    If there is a transcription error, verify or bring over correct total(s) from Copy(s) A (Form 706-GS(D-1)) to Field 03-A.

3.12.106.2.3.2  (01-01-2014)
Field 03-B, Adjusted Allowable Expenses

  1. This field is transcribed from Line 4. This amount is calculated by using the Adjusted Allowable expenses which are equal to the total allowable expenses, Copy(s) A (Form 706-GS (D-1)), Column C multiplied by the inclusion ratio, Schedule B, Column B.

  2. If there is more than one inclusion ratio to report on Schedule A, prorate the total expenses among the inclusion ratios based on the value of each distribution made at the various inclusion ratios.

3.12.106.2.3.3  (01-01-2014)
Field 03-C, Taxable Amount

  1. This field is transcribed from Line 5. This field is computed by subtracting Line 4 (Field 03-B) from Line 3 (Field 03-A).

  2. If this field underprints, check for Taxable Amount transcription errors in Field 03-A, 03-B, and 03-C. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. If entered correctly, send TPNC 55.

3.12.106.2.3.4  (01-01-2014)
Field 03-D, Generation-skipping transfer tax

  1. This field is transcribed from Line 7. It is computed by multiplying Field 03-C (Line 5 (Taxable Amount) by (the percentage shown on) Line 6 (Maximum federal estate tax rate)).

    Note:

    On prior revisions of Form 706-GS(D), this line was referred to as "Gross GST tax (multiply line 5 by line 6)" . The title was changed on the February 2006 revision of Form 706-GS(D).

  2. Check for transcription errors. If the transcribed amount is correct and an underprint is present, send TPNC 56.

3.12.106.2.3.5  (01-01-2014)
Field 03-E, Creditable State GST Tax (Line 8 from prior forms (valid through December 31, 2004, only))

  1. This field was contained on (and transcribed from) the former Line 8 (January 2003 and prior revisions).

    Caution:

    This line item is valid only for any Forms 706-GS(D) with tax periods ending December 31, 2004, and prior. It is not valid for any returns submitted for tax periods ending after December 31, 2004.

  2. IMPORTANT: If this amount is present on any returns with tax periods ending after December 31, 2004, draw a line through the amount shown on the register to disallow it, using AC 6. Issue TPNC 90 to explain to the taxpayer that this amount (tax) is no longer valid for tax periods ending after December 31, 2004.

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.106.2.3.6  (01-01-2014)
Field 03-F, GST Limitation Amount (Line 9 from prior forms (valid through December 31, 2004, only))

  1. This field was transcribed from the former Line 9 (January 2003 and prior revisions). It was computed by multiplying Line 7 (Field 03-D (Generation-Skipping Transfer Tax)) by 5% or (.05).

    Caution:

    This line item is valid only for any Forms 706-GS(D) with tax periods ending December 31, 2004, and prior. It is not valid for any returns with tax periods ending after December 31, 2004. (Refer to paragraph (3) below.)

  2. Check for transcription errors. If the transcribed amount is correct and an underprint is present, issue TPNC 90, stating, "An error was made in computing 5% of Gross GST Tax."

  3. IMPORTANT: If this amount is present on any returns with tax periods ending after December 31, 2004, draw a line through the amount shown on the register to disallow it, using AC 6. Issue TPNC 90 to explain to the taxpayer that this amount (tax) is no longer valid for tax periods ending after December 31, 2004.

3.12.106.2.3.7  (01-01-2014)
Field 03-G, Allowable Credit Amount (Line 10 from prior forms (valid through December 31, 2004, only))

  1. This field was transcribed from the former Line 10 (January 2003 and prior revisions). The computer used the lesser amount on Line 7 (Field 03-E (Creditable State GST Amount)) or Line 8 (Field 03-F (GST Limitation Amount)).

    Caution:

    This line item is valid only for any Forms 706-GS(D) with tax periods ending December 31, 2004, and prior. It is not valid for any returns with tax periods ending after December 31, 2004. (Refer to paragraph (3) below.)

  2. Check for transcription errors or misplaced entries. If the transcribed amount is correct and underprint is present, enter TPNC 57.

  3. IMPORTANT: If this amount is present on any returns with tax periods ending after December 31, 2004, draw a line through the amount shown on the register to disallow it, using AC 6. Issue TPNC 90 to explain to the taxpayer that this amount (tax) is no longer valid for tax periods ending after December 31, 2004.

3.12.106.2.3.8  (01-01-2014)
Field 03-H, Generation Skipping Transfer tax

  1. This field is transcribed from Line 7. This is the result of Line 5 (Taxable Amount) multiplied by Line 6 (Applicable Tax Rate). See Table of Maximum Tax Rates provided in paragraph (4) below for additional information.

    Note:

    This field was transcribed previously from Line 11 (January 2003 and prior revisions). This amount was calculated by subtracting Field 03-G (Allowable Credit Amount) from Field 03-D (Gross GST Tax). On those versions, this amount was calculated by subtracting Line 10 (Field 03-G, Allowable Credit amount) from Line 7 (Field 03-D, Gross GST tax).

    Reminder:

    For December 31, 2004, and prior: Field 03-H was previously "Net GST (Generation-Skipping Transfer) Tax" . "Net GST (Generation-Skipping Transfer) Tax" was valid for periods ending December 31, 2004, and prior.

  2. Check for transcription errors. If entered correctly, send TPNC 65.

  3. This field will underprint if it exceeds≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. The Table of Maximum Tax Rates is provided below.

    Table of Maximum Tax Rates
    If the generation-skipping transfer occurred The maximum tax rate is
    Tax Year 2013 40%
    Tax Year 2011 and 2012 (i.e., After December 31, 2010, but before January 1, 2013) 35%
    Tax Year 2010 (i.e., After December 31, 2009, but before January 1, 2011) 0%
    Tax Year 2009 (i.e., After December 31, 2008, but before January 1, 2010) 45%
    Tax Year 2008 (i.e., After December 31, 2007, but before January 1, 2009) 45%
    Tax Year 2007 (i.e., After December 31, 2006, but before January 1, 2008) 45%
    Tax Year 2006 (i.e., After December 31, 2005, but before January 1, 2007) 46%
    Tax Year 2005 (i.e., After December 31, 2004, but before January 1, 2006) 47%
    Tax Year 2004 (i.e., After December 31, 2003, but before January 1, 2005) 48%
    Tax Year 2003 (i.e., After December 31, 2002, but before January 1, 2004) 49%


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