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Tax tips for Form 706 package

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📊 Step-by-Step Guide

Step 1: Confirm key filing timing

Use this when you need to know when the return is due.

Form 706 is due nine months after the date of death.

Step 2: Understand e-filing availability

Use this when you are planning how to submit the return.

The IRS does not support e-filing for Form 706.

Step 3: Complete Form 706, Page 1

Use this when you are entering decedent and executor information.

Form 706, Page 1

• Fill out Form 706, page 1 for information about the decedent; as well as for the executor of the estate.
• To add a state to the return: enter the state abbreviation under line 5, or press F3 to get the red out of the entry.
• If a change of address is needed: you must complete Form 8822; which is located in the Miscellaneous package.

Key calculations on Page 1:

• The total gross estate less the exclusion is calculated on line 1, which comes from Form 706, page 3, Part 5, line 12.
• The total allowable deductions on line 2 is calculated from Form 706, page 3, line 22.

Step 4: Complete Form 706, Page 2 (Parts 3 and 4)

Use this when you are answering executor questions and entering spouse/beneficiary details.

Form 706, Page 2

• Part 3: Answer the questions regarding the executor.
  • If you answer "No" to question 1, the alternate valuation columns will calculate on other Schedules.
• Part 4: Enter the representative, decedent, and surviving spouse information in this section.

Beneficiaries and other prompts:

• Enter the beneficiaries' information on line 5.
• If there are more than thirteen beneficiaries, link from the "name of individual, trust, or estate receiving $5,000 or more" column to a statement.
• Answer the questions at the top of the page.

Step 5: Complete Form 706, Page 3 (Part 5 - Recapitulation)

Use this when you need to understand how totals and schedules flow together.

Part 5 - Recapitulation

• Lines 1 through 9 are calculated from their corresponding Schedules to show the gross worth of the estate.
• Lines 13 through 21 are calculated from Schedules to show the deductions to the taxable estate.
• Line 12 and line 22 flow to Form 706, page 1.
• Schedule A through Schedule I are used to show the value of the decedent's estate.
• Enter deductions and credits on Schedule J through Schedule Q.

More room for items:

• If, at any time you need more room to list items, link from the entries that read "Total from Continuation Schedules" to a Continuation Schedule.
• These Continuation Schedules will print with the return.

Step 6: Use Form 4768 - Application for Extension of Time to File or Pay

Use this when you need an extension for Form 706.

Form 4768 - Application for Extension of Time to File or Pay

• Part I is calculated for you from Form 706, page 1.
• Part II: Mark the applicable box in Part II to apply for an extension of time to file Form 706.
• You are given an automatic six month extension.
• Part IV is where you apply for an extension of time to pay the tax owed.

Tags: federal,form