Form 706-NA: United States Estate (and Generation-Skipping Transfer) Tax Return

Form 706-NA is generally used to report the estate of certain nonresident individuals who were not citizens of the United States.

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Introduction

Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, is generally used for certain estates of nonresident individuals who were not citizens of the United States. The form is generally used to report property located in the United States and applicable federal estate and generation-skipping transfer tax information.

This guide provides general information about Form 706-NA, including who may use the form, the information commonly needed, and the basic process for completing it. The information is intended to provide a simple overview of Form 706-NA and its general purpose.

What Is Form 706-NA?

Form 706-NA is generally used to report the U.S.-situated property and applicable estate tax information of a deceased nonresident individual who was not a U.S. citizen. The return may be required when the estate meets applicable federal filing requirements.

Form 706-NA generally includes information about the decedent, the estate, property located in the United States, deductions, beneficiaries, transfers, and other applicable estate tax information.

Who Uses Form 706-NA?

Form 706-NA is generally prepared and filed by the executor, administrator, personal representative, or other person responsible for the estate of a nonresident individual who was not a citizen of the United States when applicable federal estate tax reporting requirements apply.

The filing requirements can depend on the decedent’s citizenship, residency, property located in the United States, estate value, applicable deductions, tax treaties, and other circumstances. An estate may also have additional federal, state, or foreign reporting requirements.

What Information Is Needed?

The information needed to complete Form 706-NA generally comes from the decedent’s financial records, estate records, property records, legal documents, beneficiary information, prior tax records, and other applicable documentation. Accurate records can help ensure that U.S.-situated property and other applicable estate information are properly reported.

Common information includes:

Decedent name
Decedent address
Date of death
Place of death
Citizenship information
Residency or domicile information
Executor or personal representative information
Estate identification information
U.S.-situated property
Real estate located in the United States
Business interests
Securities and investment accounts
Bank and financial accounts
Personal property
Life insurance information when applicable
Debts and liabilities
Funeral and administration expenses
Charitable deductions when applicable
Beneficiary information
Trust information when applicable
Prior gifts or transfers
Tax treaty information when applicable
Supporting estate and tax records

The specific information required may depend on the decedent’s citizenship and residency, the type and location of property, applicable deductions, tax treaties, beneficiaries, transfers, and other circumstances.

How to Fill Out/Complete Form 706-NA

Form 706-NA is generally completed by gathering the decedent’s financial and legal records, identifying the decedent and estate, reporting applicable U.S.-situated property, reporting deductions and liabilities, providing beneficiary and transfer information, completing applicable schedules, considering applicable treaty information, and reviewing the completed return before submission.

The basic process is to gather estate records, identify the decedent and personal representative, report applicable U.S.-situated property, report deductions and expenses, provide beneficiary and transfer information, complete applicable schedules, review applicable tax information, and submit the return according to the applicable filing requirements. The estate should retain a copy of Form 706-NA and supporting records.

Section 1

Enter the identifying information for the decedent and estate. This generally includes the decedent’s name, address, date of death, citizenship information, residency information, and other applicable information.

The information should generally agree with the decedent’s legal, financial, and estate records. The executor or personal representative should review the identifying information carefully before completing the remaining sections.

Section 2

Enter the executor, administrator, personal representative, or other applicable fiduciary information. This generally includes the name, address, and other identifying information for the person responsible for the estate.

The fiduciary information should generally agree with the estate’s legal and administrative records. The information should be reviewed carefully to help ensure that the appropriate person responsible for the estate is identified.

Section 3

Report the property located in the United States that is applicable to the estate. This may include U.S. real estate, securities, business interests, bank accounts, personal property, and other applicable property.

The reported values should generally be supported by appraisals, account statements, ownership documents, financial records, property records, and other applicable documentation. The estate should retain records supporting the reported property and values.

Section 4

Report applicable deductions, debts, expenses, and other amounts that may affect the estate tax calculation. This may include qualifying expenses, debts, administration costs, and other applicable deductions.

The amounts reported should generally be supported by invoices, receipts, estate records, legal documents, financial statements, and other applicable documentation. Only deductions that apply to the estate should generally be included.

Section 5

Report applicable beneficiary and transfer information. This may include information about property passing to beneficiaries, trusts, surviving individuals, charitable organizations, or other recipients.

The information should generally agree with wills, trusts, beneficiary designations, transfer documents, account records, and other estate records. The estate should review beneficiary information carefully for accuracy.

Section 6

Report applicable prior gifts, transfers, or other information that may affect the estate tax calculation. Certain transfers made before death may need to be considered when completing the applicable sections.

The information should generally be supported by prior tax returns, transfer records, legal documents, financial records, and other applicable documentation. The estate should review prior transfers carefully when determining what information applies.

Section 7

Review applicable tax treaty information. Certain estates involving nonresident individuals may need to consider whether a tax treaty affects the federal estate tax reporting or calculation.

The estate should review applicable citizenship, residency, property, treaty, and other records when determining whether treaty-related information applies. Supporting documentation should generally be retained when applicable.

Section 8

Complete applicable schedules and supplemental information. The schedules required may depend on the type of U.S.-situated property, deductions, transfers, beneficiaries, and other estate circumstances.

The estate should include only applicable schedules and information and should retain documentation supporting the amounts reported. Each applicable schedule should generally be reviewed for consistency with the main return.

Section 9

Complete the applicable estate tax calculation and other required information. This generally involves reviewing the estate’s reported property, deductions, transfers, credits, treaty information, and other applicable amounts.

The calculations should generally be reviewed against the supporting estate, property, financial, and tax records. Applicable adjustments, credits, or other amounts should be reviewed before the return is finalized.

Section 10

Review the completed Form 706-NA and related schedules. Check the decedent information, citizenship and residency information, executor information, U.S.-situated property, deductions, transfers, beneficiaries, treaty information, tax calculations, schedules, and supporting documentation.

The completed return should generally be reviewed for consistency and completeness before submission. The estate should retain a complete copy of the return and supporting records for its files.

Final Review

Review Form 706-NA after completing all applicable sections. Check the decedent information, citizenship and residency information, executor information, U.S.-situated property, property values, deductions, expenses, transfers, beneficiaries, trusts, treaty information, tax calculations, schedules, supporting records, and final amounts reported.

A final review can help identify calculation or reporting errors before the return is submitted. Estates should retain Form 706-NA, appraisals, financial statements, legal documents, beneficiary records, prior tax records, treaty documentation when applicable, and supporting estate and tax records with the estate’s records.

Common Mistakes

Common Form 706-NA mistakes may include reporting incorrect U.S.-situated property values, failing to identify applicable U.S. property, entering incorrect decedent or estate information, or failing to properly report applicable deductions and transfers. Errors involving citizenship, residency, beneficiaries, trusts, or tax treaty information can also affect the return.

Other mistakes may include failing to include required schedules, using unsupported property values, overlooking applicable deductions or treaty provisions, providing incomplete information, entering incorrect dates, leaving required information incomplete, or submitting the return without reviewing it. Comparing Form 706-NA with the estate’s legal, financial, property, and tax records can help identify potential errors.

Related IRS Forms

Estates may encounter other federal tax forms when reporting estate income, gifts, fiduciary relationships, tax information, or other estate-related activities. Different forms are used for specific estate, trust, gift, and federal tax reporting requirements.

Common related forms include:

Form 706 for certain federal estate and generation-skipping transfer tax reporting
Form 1041 for certain estate and trust income tax reporting
Form 709 for certain federal gift and generation-skipping transfer tax reporting
Form 56 for notifying the Internal Revenue Service of certain fiduciary relationships
Form 2848 for certain powers of attorney and declarations of representative
Form 8821 for authorizing the release of certain tax information
Form 4506 for requesting certain copies of tax returns
Form 4506-T for requesting certain tax transcripts
Form 843 for certain claims for refund and requests for abatement

The appropriate form depends on the decedent’s circumstances, citizenship, residency, property, transfers, beneficiaries, estate activity, and other applicable tax requirements.

Where to File or Submit

Form 706-NA is generally submitted according to the federal filing requirements that apply to the estate of a nonresident individual who was not a U.S. citizen. The appropriate filing method and submission location can depend on the estate’s circumstances, applicable filing requirements, tax treaty considerations, payment requirements, and other applicable rules.

The executor or personal representative should review the applicable filing requirements before submitting Form 706-NA. A copy of the completed return, schedules, appraisals, legal documents, financial records, beneficiary information, treaty documentation when applicable, and supporting tax records should generally be retained for the estate’s records.

Current IRS Form & Instructions

Estates should use the applicable version of Form 706-NA and its instructions when preparing a federal estate tax return for a nonresident individual who was not a U.S. citizen. Forms, filing requirements, thresholds, deductions, treaty considerations, and procedures can change, so the version used should correspond with the applicable estate and filing period.

Before submitting Form 706-NA, review the form and applicable instructions carefully and confirm that the information agrees with the estate’s legal, financial, property, beneficiary, and tax records. This can help identify errors before the return is submitted.

Important Information / Disclaimer

This Form 706-NA guide is provided for general informational purposes only and is intended to provide a basic overview of Form 706-NA and common information associated with filing a federal estate tax return for certain nonresident individuals who were not citizens of the United States. This information is not tax, legal, accounting, or financial advice, and estate tax filing requirements can vary depending on the decedent, citizenship, residency, property, estate value, deductions, transfers, beneficiaries, tax treaties, and other applicable circumstances.

Estates, executors, administrators, personal representatives, and other fiduciaries are responsible for determining their applicable filing, payment, recordkeeping, valuation, and reporting requirements. The information on this page may not cover every situation, exception, treaty provision, election, limitation, or special rule that may apply. When appropriate, estates and their representatives should consider seeking assistance from a qualified tax professional, attorney, certified public accountant, enrolled agent, or other qualified advisor regarding their specific estate or Form 706-NA requirements.