Instructions for Form 706 (9/2007)
Instructions for Form 706 - Introductory Material
Prior Revisions of Form 706
| After |
For Decedents Dying
and |
Before |
Use Revision of
Form 706 Dated |
| December 31, 1997 |
|
January 1, 1999 |
July 1998 |
| December 31, 1998 |
|
January 1, 2001 |
July 1999 |
| December 31, 2000 |
|
January 1, 2002 |
November 2001 |
| December 31, 2001 |
|
January 1, 2003 |
August 2002 |
| December 31, 2002 |
|
January 1, 2004 |
August 2003 |
| December 31, 2003 |
|
January 1, 2005 |
August 2004 |
| December 31, 2004 |
|
January 1, 2006 |
August 2005 |
| December 31, 2005 |
|
January 1, 2007 |
October 2006 |
-
Use this revision of Form 706 only for the estates of decedents dying in calendar year 2007.
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The maximum tax rate for the estates of decedents dying in 2007 has decreased to 45%.
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The Small Business and Work Opportunity Tax Act of 2007, P.L. 110-28, extends the application of income tax return preparer penalties to all tax return preparers, including estate tax return preparers. See Penalties, Return preparer on page 3 for more information.
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The decedent's authority over certain financial accounts in a foreign country must be reported on Part 4—General Information. See Line 14. Foreign Accounts on page 12 for more details.
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Various dollar amounts and limitations relevant to Form 706 are indexed for inflation. For decedents dying in 2007, the following amounts have increased:
| (a) the ceiling on special-use valuation is $940,000 and |
| (b) the amount used in computing the 2% portion of estate tax payable in installments is $1,250,000. |
The IRS will publish amounts for future years in an annual revenue procedure.
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Beginning with the estates of decedent's dying and generation-skipping transfers occurring after December 31, 2003, the generation-skipping transfer (GST) exemption is equal to the applicable exclusion amount. For 2007, that amount is $2,000,000.
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