When needed the correspondence received date is edited in YYYYMMDD format.

The 45-day interest free period for processing refund returns does not begin until we receive the return in a processable format. If we correspond for missing information, the correspondence received date must be input to the Master File for the purpose of computing credit interest.

This is a computer-generated field that calculates the return due date as 9 months after the Date of Death in YYYYMMDD format.

This field is used to determine if a return is filed timely. If the return is filed late, it is used to calculate any applicable penalties and interest.

Correct transcription errors if the field is not entirely numeric.

If the money amounts on a return exceed the maximum field length allowable, take the following action:

The Error Record Format for Section 02 is listed as follows:

This field is transcribed from Page 1, Part 2, Line 1, of the return and is verified by Code and Edit tax examiners. It is transferred from Page 3, Part 5, Item number 13, of the Recapitulation schedule. The amount transcribed will be either the taxpayer's amount or the examiner's corrected amount. It must be entered in dollars and cents or dollars only, whichever is applicable.

This line shows the total amount of assets owned by the decedent at death. After deductions are taken and certain gifts given during life are added back, this amount provides the basis upon which the estate tax (before credits or other adjustments) is calculated.

This field is transcribed from Page 1, Part 2, Line 2 of the return and is verified by Code and Edit examiners. It is transferred from Page 3, Part 5, Item number 24 of the return. The amount transcribed will be either the taxpayer's amount or the examiner's corrected amounts.

After allowable deductions are taken and certain gifts given during life are added back, this amount provides the basis upon which the estate tax (before credits or other adjustments) is calculated.

This field is transcribed from Page 1, Part 2, Line 3a of the return. It is computed by subtracting Page 1, Part 2, Line 2 from Line 1 (Fields 0202 and 0201). This field can be positive or zero.

This field is transcribed from Page 1, Part 2, Line 3b of the return. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

The state death tax credit has been repealed for estates of decedents dying after December 31, 2004. Beginning in 2005, the credit was replaced with a state death tax deduction against the value of the gross federal estate.

This field is transcribed from Page 1, Part 2, Line 3c of the return. It is computed by subtracting Page 1, Part 2, Line 3b from Line 3a (Fields 0203B and 0203A). This field can be positive or zero.

This is the amount on which, after certain gifts given during life are added back, the estate tax (before credits or other adjustments) is calculated.

This field is transcribed from Page 1, Part 2, Line 4 of the return. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Estate and gift taxes have a unified tax structure. Tax is calculated on assets given as gifts after December 31, 1976, as well as assets owned at death. Therefore, those gifts not excludable under the Internal Revenue Code must be added to the taxable estate to determine the amount upon which estate tax can be imposed.

This field is transcribed from Page 1, Part 2, Line 5 of the return. It is computed by adding Page 1, Part 2, Lines 3C and 4 (Fields 0203C and 0204).

This is the amount on which the tentative tax is calculated.

This field is transcribed from Page 1, Part 2, Line 6. The computer figures the tax in this field by using the amount in Net Taxable Estate Computer and Tax Table A on Page 4 of the instructions.

This is the basic estate tax, subject to adjustments.

This field is transcribed from Page 1, Part 2, Line 7. It is the total amount of gift tax payable on gifts made after December 31, 1976.

Taxable gifts made after December 31, 1976, are taken into account in computing the estate tax upon death. The gift and estate taxes are not separate taxes. Rather, they are designed to impose a tax or transfer of assets, whether made during life or upon death. This line gives a credit against estate tax for gift taxes payable. Were this not so, an individual would have to pay tax on the gift twice, once when he/she made the gift and again at death.

This field is transcribed from Page 1, Part 2, Line 8 (Field 0208). It is computed by subtracting Page 1, Part 2, Line 7 from Line 6 (Fields 0207 and 0206).

See IRM 3.12.263.4.11, Field 0207-Aggregate Gift Tax, for the reasons this field allows gift taxes paid to be subtracted from estate tax.

This field is transcribed from (2011 and prior revisions) Page 1, Part 2, Line 9 (Field 0209). The computer will math verify this field by using the Date of Death (Field 01DOD) and the Unified Credit amounts.

The Unified Credit is similar to the standard deduction or personal exemptions allowed on an individual income tax return. Individuals do not pay income tax on income that is less than the total amount of the standard deduction or personal exemptions. Nor do they pay estate or gift taxes on gifts or bequests whose total tax is less than the Unified Credit. There are 2 differences between the Unified Credit and the standard deduction/personal exemption. First the Unified Credit is a credit against tax, not a deduction from income or assets. The credit is subtracted against the estate tax, not the total amount of the estate. Second, the Unified Credit is much larger than the standard deduction/personal exemption.

This field is transcribed from Page 1, Part 2, Line 9a and is valid for DOD in 2012 and subsequent.

This field is transcribed from Page 1, Part 2, Line 9b and is valid for DOD in 2012 and subsequent.

This field is transcribed from Page 1, Part 2, Line 9c and is valid for DOD in 2012 and subsequent.

This field is transcribed from Page 1, Part 2, Line 9d and is valid for DOD in 2012 and subsequent.

The Unified/Applicable Credit for the following years is:

This "dual use" field is transcribed from Page 1, Part 2, Line 10. The maximum allowable credit is $6,000 for this field. "Dual use" meaning either term will be correct for programming purposes.

At the time the current Unified/Applicable Credit system was created, Congress provided that the taxpayer's use of the former gift tax exemption for gifts made between September 8 and December 31, 1976, would result in an adjustment to the Unified/Applicable Credit applicable to the taxpayer's transfers after 1976 (reduction in Unified/Applicable Credit is 20% of exemption claimed).

This "dual use" field is transcribed from Page 1, Part 2, Line 11. It is computed by subtracting Page 1, Part 2, Line 10 from Line 9d (Line 9 for 2011 and prior revisions) (Fields 0210 and 0209d).

At the time the Unified/Applicable Credit was created, Congress provided that the taxpayer's use of the former gift tax exemption for gifts made between September 8, and December 31, 1976, would result in an adjustment to the Unified/Applicable Credit applicable to the taxpayer's transfers after 1976.