Corrections and Clarifications for the 2012 Instructions for Form 709 -- 11-JAN-2013
The following corrections and clarifications are provided for the 2012 Instructions for Form 709. Please note that the items listed below, as shown in the instructions, will not lead to erroneous results for the taxpayer.
Worksheet for Schedule B, Column C (Credit Allowable for Prior Periods) (page 13):
- The heading in Column H should read "DSUE from Predeceased Spouse(s)," as DSUE amounts from more than one predeceased spouse may populate this column.
- The italicized language following "Total Applicable Credit Used in Prior Periods," provides an incorrect direction to "Enter the Total of Column N on Line 8, Part 2--Tax Computation." The total of Column N should be entered on Schedule B, Line 1, Column C. From there, the total will be carried over to Line 8 of Part 2 -- Tax Computation.
Worksheet for Schedule B, Column C (Credit Allowable for Prior Periods), Example 3 (page 14): There are three errors in Example 3. Column E should read "0," not "2,625,000." Column F should read "2,780,800," not "0." Column N should read "2,780,800," not "2,780,000." The result shown (total of Column N) is correct.
Part 1. DSUE Received From the Last Deceased Spouse (page 16): The last sentence of this paragraph indicates that no entries should be made in Column F of Part 1 of Schedule C. This is incorrect. Enter the dates of gifts to which the DSUE amount received from the Last Deceased Spouse is to be applied in Column F as mm/dd/yy.