- 3 -
|
Page 3 of 4 Fileid: … 706GS(D)/201906/A/XML/Cycle04/source 9:57 - 29-May-2019
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
For more information, see the additional allowable expense is generation-skipping distribution
Instructions for Form 706, United incurred after the return is filed, file occurred.
States Estate (and Generation- Form 843, Claim for Refund and
Skipping Transfer) Tax Return. You Request for Abatement, to claim a Line 9
can get the Instructions for Form 706, refund. Make your check payable to “United
States Treasury.” Please write your
and other IRS forms and publications, Example. The following example SSN (or EIN), the year, and “Form
by calling 800-TAX-FORM or by illustrates the rules above. 706-GS(D)” on the check to assist us
visiting IRS.gov.
You listed three distributions in Part in posting it to the proper account.
Part III II of Form 706-GS(D). The value of the Enclose, but do not attach, the
first distribution is $10,000 and has an payment with Form 706-GS(D).
Line 4 inclusion ratio of 0.25. The value of
You may deduct any adjusted the second distribution is $20,000 and Table of Maximum Tax Rates
allowable expenses incurred in has an inclusion ratio of 0.33. The
connection with the preparation of this value of the third distribution is The
Form 706-GS(D) or any other $30,000 and has an inclusion ratio of If the generation-skipping maximum
expenses incurred in connection with 0.50. You received the completed transfer occurred: tax rate is:
the determination, collection, or return from the preparer along with the After December 31, 2002, but 49%
refund of the GST tax reported or bill for the preparer's fee on April 14 before January 1, 2004
which should have been reported on and filed the return on April 15. You
this return from the amount of the paid the preparer's $200 fee on April After December 31, 2003, but 48%
distribution you received. 20. The adjusted allowable expense before January 1, 2005
you should report on line 4 of Part III is After December 31, 2004, but 47%
Adjusted allowable expenses are $80, calculated as follows. before January 1, 2006
equal to the total allowable expenses $10,000
× 200=33.33 × 0.25 = 8 (rounded)
multiplied by the inclusion ratio. If you $60,000 After December 31, 2005, but 46%
have more than one inclusion ratio in $20,000 before January 1, 2007
× 200=66.67 × 0.33 = 22 (rounded)
Part II, column d, of Form 706-GS $60,000 After December 31, 2006, but 45%
(D-1), prorate the total expense $30,000 before January 1, 2010
among the inclusion ratios based on × 200 = 100 × 0.50 = 50
$60,000
the relative value of each distribution After December 31, 2009, but 0%
made at the various inclusion ratios. Adjusted allowable expense = 80
before January 1, 2011
You may deduct an expense even Line 6 After December 31, 2010, but 35%
though it has not been paid at the time Enter, using the table below, the before January 1, 2013
the return is filed as long as the applicable rate in effect at the time the
amount of the expense is clearly After December 31, 40%
ascertainable at that time. If an 2012
Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal
Revenue laws of the United States. We need it to figure and collect the right amount of tax. Subtitle B, Estate and Gift
Taxes, of the Internal Revenue Code imposes a tax on certain distributions from a trust to a skip person; section 6109
requires you to provide your identification number. This form is used to figure the amount of the taxes that you owe.
Failure to provide this information in a timely manner, or providing false or fraudulent information, may subject you to
penalties. We may disclose this information to the Department of Justice for civil and criminal litigation, and to cities,
states, the District of Columbia, and U.S. commonwealths and possessions for use in administering their tax laws. We
may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal
nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be
retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by section 6103.
The time needed to complete and file this form will vary depending on individual circumstances. The average
estimated time is:
Recordkeeping 6 min.
Learning about the law or the form 13 min.
Preparing the form 18 min.
Copying, assembling, and sending the form to the IRS 20 min.
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler,
we would be happy to hear from you. You can send us comments from IRS.gov/FormComments. Or you can write to the
-3-
|