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

3.12.106.2 
Processing Form , Generation-Skipping Transfer Tax Return For Distributions

3.12.106.2.1 
Section 01- , Generation-Skipping Transfer Tax Return for Distributions

3.12.106.2.1.1  (01-01-2017)
Due Date

  1. Forms Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, are due on April 15th following the calendar year when the distributions were made. If the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day.

3.12.106.2.1.2  (01-01-2017)
Field 01-A, Remittance Amount

  1. You cannot change this field. If the amount is incorrect, treat the return and related error record as unprocessable. Reject with AC three and prepare Form 10886, Reject Routing Slip to explain the error. The Reject function will prepare Form 3893 for re-entry.

  2. The Remittance Amount is located on the Balance Due line of a full paid return and is designated by a green rocker.

  3. If a remittance amount is shown on an apparent nontaxable return, but an examination reveals that it should be taxable, enter the missing data in the appropriate fields and sections of the register and enter AC six.

  4. Field 01-A (Remittance Amount) will asterisk if an amount is present in Field 01-A and there is no entry in Field 03-H (Net GST Tax), or Net GST Tax Computer. If the return is a true nontaxable, (i.e., taxpayer shows "none" , "not liable" , tax is zero due to a math error, or just signs the return) and no other non-math errors are involved, treat return as "unprocessable" . Bring up the underprint for Field 03-H. Reject with AC three. Indicate excess remittance on Form 10886, Reject Routing Slip. If nontax status is due to a math error, note on Form 10886, "Zero tax due to math error. Refund if no other tax due" .

3.12.106.2.1.3  (01-01-2016)
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  (01-01-2016)
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  (01-01-2017)
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 "one" .

  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 three. 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 three and Form 10886, Reject Routing Slip, 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 three to Entity. If TIN is an SSN, send to Entity so they can 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 "one" 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 "three" 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 nine to re-establish the account as a raw register.

    2. After the account is reestablished, forward to Entity using Form 10886, Reject Routing Slip.

3.12.106.2.1.4  (01-01-2017)
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), Generation-Skipping Transfer Tax Return for Distributions.

  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 using AC three to Entity Control to secure an EIN or a temporary SSN. Enter the corrected or temporary number assigned by Entity using AC six.

    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  (01-01-2017)
Field 01-D, TIN Type

  1. Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, may carry an EIN or SSN.

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

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

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

  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  (01-01-2017)
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 six.

3.12.106.2.1.6.1  (01-01-2016)
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  (01-01-2017)
Field 01-F, Received Date

  1. This date must be present on all Form Forms 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, 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 "one" , ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 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.

  8. If a return has been faxed to another area of the service and then sent to Submission Processing for processing, do not enter the Enterprise Electronic Fax (EEFax) Date as the IRS Received Date. Enter a Received Date according to normal procedures.

    Caution:

    The EEFax Date cannot legally be used as an IRS Received Date.

3.12.106.2.1.8  (01-01-2017)
Field 01-G, Computer Condition Codes (CCCs)

  1. The valid condition codes for Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, are D, F, G, O, R, W, X, three and seven. 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 six.

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

3.12.106.2.1.8.1  (01-01-2017)
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 Form 706 and Form 709 (Estate and Gift Tax) series returns:

    1. Make a photocopy of Pages one and two 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 10886, Reject Routing Slip, and route 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 "seven" (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 be 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  (01-01-2016)
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  (01-01-2017)
CCC "G" - Amended Return

  1. Edit CCC "G" on returns marked "Amended" , "Superseding" , "Duplicate" , "Corrected" , "Supplemental" , etc. Computer condition codes "W" and "three" 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 six. Delete all other sections with AC four.

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

3.12.106.2.1.8.4  (01-01-2017)
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 pre-settlement manual refund was made.

3.12.106.2.1.8.5  (01-01-2017)
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 "seven" - Reasonable Cause Denied, for reasonable cause criteria.

  2. Do not use CCC "R" if CCC "seven" (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 Forms 709 (Estate and Gift Tax) series returns:

    1. Make a photocopy of Pages one and two 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 10886, Reject Routing Slip, and route to the Cincinnati Compliance Services, Estate and Gift Tax Campus Operation.

    4. Continue normal processing of the (original) return. Using the If/Then Chat below.

    If Then
    Form 706, U.S. Estate Tax Return, is received with Form 709, United States Gift (and Generation-Skipping Transfer) Tax Returns, attachment (extension request) Edit Computer Condition Code (CCC) "R" on the return so that a penalty will not be assessed on the Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, if the Form 706, U.S. Estate Tax Return, posts after the Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return,.
  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  (01-01-2016)
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  (01-01-2017)
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 six.

3.12.106.2.1.8.8  (01-01-2017)
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 six.

3.12.106.2.1.8.9  (01-01-2017)
CCC "Three" - No Reply Received/Suppress Credit Interest

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

3.12.106.2.1.8.10  (01-01-2017)
CCC "Seven" - Reasonable Cause Statement Denied

  1. Enter CCC "seven" 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 Form 709 (Gift Tax) series tax returns.

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

  3. The Cincinnati Compliance Services, Estate and Gift Tax Campus Operation at Cincinnati Submission Processing Center will make all determinations of reasonable cause for all Forms 706 (Estate Tax) and Form 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 seven 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  (01-01-2017)
Field 01-H, Penalty and Interest (P&I) Code

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

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

  3. Field 01-H must be blank or "one" . If "one" is present, the received date (Field 01-F) must be ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ asterisk. See Figure 3.12.106-8, shows timely -files Form 706-GS(D),Generation-Skipping Transfer Tax Return for Distributions with prepaid penalty and interest of $50.00.

    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.

3.12.106.2.1.10  (01-01-2017)
Field 01-I, CAF Indicator

  1. Valid indicator must be blank or numeric (one through four and seven). 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 six. The correct CAF codes are:

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

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

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

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

    • "five" and "six" are not used.

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

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

3.12.106.2.1.11  (01-01-2017)
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 "three" in Field 01-G.

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

3.12.106.2.1.12  (01-01-2017)
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, Field 01-B Name Control, through IRM 3.12.106.3.1.6.1, Taxpayer underprint (generated) are followed and the error register field and the underprint do not agree, enter the appropriate code as follows:

    1. Code one - Clear name control underprint

    2. Code two - Clear tax period underprint

    3. Code three - 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  (01-01-2017)
Field 01-L, Taxpayer Notice Codes (TPNCs)

  1. Taxpayer Notice Codes (TPNCs) can be input only as correction data using AC one. 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 one and the proper TPNC.

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

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

    • 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  (01-01-2017)
Field 01-M, Refund Code

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

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

  3. When a refund code of "one" 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 "three" and routed to Rejects for processing. If a manual refund for any amount is issued, and CCC "O" is present, enter code "one" even if the refund is less than $1,000,000.00. Route to Rejects using Form 10886, Routing Reject Slip.

3.12.106.2.1.15  (01-01-2017)
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), Generation-Skipping Transfer Tax Return for Distributions, and Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations.

  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  (01-01-2017)
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), Generation-Skipping Transfer Tax Return for Distributions, and Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations.

  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  (01-01-2017)
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), Generation-Skipping Transfer Tax Return for Distributions, and Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations.

  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  (01-01-2017)
Section 02 - Form 706-GS(D)

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

    Note:

    All Forms 706-GS(D) with a foreign address will be processed at Cincinnati Submission Processing Center.

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

3.12.106.2.2.1  (01-01-2017)
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. Using the If/Then Chart below.

    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 six.

    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 six.

    3. If the information is correct as written, edit an AC seven 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 six.

    3. If the information on the return is correct as written on the return, edit AC seven 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 seven.

3.12.106.2.2.2  (01-01-2017)
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 Condition - Field 02-B (Foreign Address) has 35 characters and the valid characters are alpha, numeric and special characters.

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

    • The first position is blank

    • There are two consecutive blanks followed by valid characters.

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

      Note:

      Integrated Submission and Remittance Processing, transcribers are 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/Then chart below to assist in perfecting.

      If 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.
      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 six.

        Note:

        See Exhibit 3.12.106-4 Foreign Country Codes.

      2. Delete Field 02-F (Zip code), if present, using AC six.

      A foreign address is present in Field 02-B (Foreign 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 six.

        Reminder:

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

      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)).

      A foreign address is NOT present in Field 02-B (Foreign Address)
      1. Draw a line through the period/space (. ) entry in Field 02-E (State) and enter the correct state code, using AC six.

      2. Enter the appropriate information in Fields 02-C (Street), 02-D (City), and 02-F (Zip code), using AC six.

      A foreign address is NOT present in Field 02-B (Foreign Address)
      1. Enter the foreign street address in Field 02-B, using AC six.

        Reminder:

        Integrated Submission and Remittance System 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 six.

        Note:

        See Exhibit 3.12.106-4, 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, Foreign Country Codes.

      3. Add the Foreign Country Code in Field 02-D (City), if missing, using AC six.

      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 six.

      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 six.

      Note:

      See Exhibit 3.12.106-4, Foreign Country Codes, for a list of the valid Foreign Country Codes or Document 7475, State and Address Abbreviation, Major City Codes (MCCs), Zip Codes and Countries

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

  6. If Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached to the return, compare the name and address information on the Form 8822, Change of Address, (or Form 8822-B), Change of Address or Responsible Party-Business, to the return. For additional information, see Exhibit 3.12.106-3, U.S. Possessions State Abbreviations and ZIP Codes.

    Note:

    A business may have two addresses. One is mailing address and the other is the location address or physical location of the business.

    Note:

    These instructions will apply to Error Resolution only if Document Perfection has not detached and sent the Form 8822 (or Form 8822-B) to Entity Control

    IF And Then
    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party, Business is attached. All of the following applies:
    • Mailing address information is the same

    • No location address is listed on Form 8822/Form 8822-B, line 7

    • No entry on Form 8822-B, Line eight or Line nine

    Take no action and continue processing.
    Form 8822, Change of Address, Or Form 8822-B, Change of Address or Responsible Part Business, is attached.
    • Mailing address information is different

    • Location address is listed on Form 8822/Form 8822-B Line seven

    • An entry is indicated on Form 8822-B Line eight or nine

    1. Enter address shown of From 8822 (or Form 8822-B) in Field 03-C (Street Address).

    2. . Notate "Form 8822 (or Form 8822-B) detached" on tax return.

    3. Detach Form 8822, Change of Address, (or Form 8822-B, Change of Address or Responsible Party- Business, and route to Entity Control using Form 4227, Intra-Sc Reject or Routing Slip (or appropriate routing slip).

    4. Notate Form 4227, Intr-Sc Reject or Routing Slip, Change of Address per Form 8822 (or Form 8822-B).

    Note:

    The lead tax examiner is required to batch all Form 8822 (or Form 8822-B) daily and hand carry to Entity Control for expedite processing.

3.12.106.2.2.3  (01-01-2016)
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 10886 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  (01-01-2017)
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 six. 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 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  (01-01-2016)
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  (01-01-2017)
Field 02-E, State

  1. If present, this field must contain a state code of two 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  (01-01-2017)
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 five, nine 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 six.

  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  (01-01-2017)
Section 03 - Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions

  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 one, 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 three 12 Total Transfers (add amounts in column c) (previously Tentative Total Transfer Amt.)
    B Line four 12 Adjusted Allowable Expenses (see instructions) (previously "Adjusted Allowable Expense Amt." )
    C Line five 12 Taxable Amount (subtract line four from line three) (previously Taxable Amt.)
    Taxable Amt. Computer
    D ----- 12 Line seven "Generation-Skipping Transfer Tax (multiply line five by line six)" (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 eight 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 seven 12 Multiply Line five by Line six (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 eight 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 nine/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),Generation-Skipping Transfer Tax Return for Distributions, 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 Form 706-GS(D-1) against the corresponding information on the Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions. If the amounts are different, perfect and continue processing the Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions.

  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), Generation-Skipping Transfer Tax Return for Distributions, with AC three.

    2. Attach Form 10886, Reject Routing Slip to the return, explaining that the Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, 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), Generation-Skipping Transfer Tax Return for Distributions . Taxpayers are not required to file Forms 706-GS(D) if the inclusion ratio found in Part II, Line three, is zero ($0.00) for ALL distributions reported to him/her.

  6. If Form 706-GS(D-1), Notification of Distribution form a Generation-Skipping Trust, is not attached to Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, 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),Generation-Skipping Transfer Tax Return for Distributions, treat the return as "unprocessable" and reject with an AC three.

    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  (01-01-2017)
Field 03-A, Total Transfers

  1. This field is transcribed from Line three (Part II (Distributions)). This is the total amount from Line three, 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  (01-01-2016)
Field 03-B, Adjusted Allowable Expenses

  1. This field is transcribed from Line four. 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  (01-01-2017)
Field 03-C, Taxable Amount

  1. This field is transcribed from Line five. This field is computed by subtracting Line four (Field 03-B) from Line three (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, use AC one and send TPNC 55.

3.12.106.2.3.4  (01-01-2017)
Field 03-D, Generation-Skipping Transfer Tax

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

    Note:

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

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

    Reminder:

    GST taxes were repealed for tax year 2010.

3.12.106.2.3.5  (01-01-2017)
Field 03-E, Creditable State GST Tax (Line eight 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 Form Forms 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions, 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 six. 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  (01-01-2017)
Field 03-F, GST Limitation Amount (Line nine from prior forms (valid through December 31, 2004, only))

  1. This field was transcribed from the former Line nine (January 2003 and prior revisions). It was computed by multiplying Line seven (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 (three) 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 six. 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  (01-01-2017)
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 seven (Field 03-E (Creditable State GST Amount)) or Line eight (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 (three) below.)

  2. Check for transcription errors or misplaced entries. If the transcribed amount is correct and underprint is present, use AC one and send 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 six. Issue TPNC 90 to explain to the taxpayer that this amount (tax) is no longer valid for tax periods ending after December 31, 2004.


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