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Instructions for Form

Department of the Treasury

Internal Revenue Service

706-NA

(Revised September 1999)

United States Estate (and Generation-Skipping

Transfer) Tax Return

Estate of nonresident not a citizen of the United States

(To be filed for decedents dying after December 31, 1997.)

Section references are to the Internal Revenue Code unless otherwise noted.

Form 706. In order to complete this

certain limits, the decedent is presumed

tax unless there is reasonable cause for

return, you must obtain Form 706, United

to have a principle purpose of avoiding

the delay. There are also penalties for

States Estate (and Generation-Skipping

U.S. taxes (section 877(a)). The executor

valuation understatements that cause an

Transfer) Tax Return, and its separate

has the burden of proving otherwise. Be

underpayment of tax and for a willful

instructions. You must attach schedules

sure to see the instructions for and then

attempt to evade or defeat payment of

from Form 706 if you intend to claim a

to answer Question 6 of Part III.

tax.

marital deduction, a charitable deduction,

a qualified conservation easement

Who Must File

Death Tax Treaties

exclusion or a credit for tax on prior

The executor must file Form 706-NA if the

Death tax treaties (or, for Canada, an

transfers, or if you answer “Yes” to

date of death value of the decedent's

income tax treaty protocol with death tax

question 5, 7, 8, 9, or 11 in Part III. You

gross estate located in the United States

provisions) are in effect with the following

will need the instructions to Form 706 to

under Internal Revenue Code situs rules

countries:

explain how to value stocks and bonds.

exceeds the filing limit. The filing limit is

Make sure that you obtain the revision of

Australia

Italy

$60,000 reduced by the sum of: (1) the

Form 706 that is applicable for the date

Austria

Japan

gift tax specific exemption (section 2521)

of the decedent's death.

Canada

Netherlands

allowed with respect to gifts made

Denmark

Norway

between September 9, 1976, and

General Instructions

Finland

Republic of South Africa

December 31, 1976, inclusive, and (2) the

France

Sweden

Germany

Switzerland

total taxable gifts made after December

Purpose of Form

Greece

United Kingdom

1976, that are not included in the gross

Ireland

estate.

Form 706-NA is used to compute estate

The executor is the personal

If you are reporting any items on this

and generation-skipping transfer (GST)

representative, executor, executrix,

return based on the provisions of a death

tax liability for nonresident alien

administrator, or administratrix of the

tax treaty or protocol, you may have to

decedents. The estate tax is imposed on

deceased person's estate. If no executor

attach a statement to this return disclosing

the transfer of the decedent's taxable

is appointed, qualified, and acting in the

the return position that is treaty based.

estate rather than on the receipt of any

United States, every person in actual or

See Regulations section 301.6114-1 for

part of it.

constructive possession of any of the

details.

For information about transfer

decedent's property must file a return. If

TIP

certificates for U.S. assets, write to

more than one person must file, it is

the Internal Revenue Service,

preferable that they join in filing one

Specific Instructions

Estate Tax Group, 950 L'Enfant Plaza,

complete return. Otherwise, each must

SW, Washington, DC 20024.

file as complete a return as possible,

Attachments

including a full description of the property

Definitions

and each person's name who holds an

If the decedent died testate, attach a

interest in it.

certified copy of the will to Form 706-NA.

The following terms are used often in

If you are unable to obtain a certified

these instructions:

When To File

copy, attach a copy of the will and explain

The United States means the 50 states

why it could not be certified.

and the District of Columbia.

File Form 706-NA within 9 months after

For closely held or inactive corporate

the date of death unless an extension of

A nonresident alien decedent means

stock, attach the balance sheets,

time to file was granted. In that case,

a decedent who is neither domiciled in nor

particularly the one nearest the valuation

attach a copy of the approved Form 4768,

a citizen of the United States at the time

date, and statements of the net earnings

Application for Extension of Time To File

of death. For purposes of this form, a

or operating results and dividends paid for

a Return and/or Pay U.S. Estate (and

citizen of a U.S. possession is not a U.S.

each of the 5 preceding years. Attach any

Generation-Skipping Transfer) Tax.

citizen.

other documents, such as appraisal lists,

A U.S. expatriate generally is one who

needed for explanation. Also attach

Where To File

lost U.S. citizenship within 10 years

copies of all available U.S. gift tax returns

before the date of death, and for whom a

Send Form 706-NA to the Internal

the decedent filed. Other documents may

principle purpose in doing so was to avoid

Revenue Service Center, Philadelphia,

be required as explained in these

U.S. taxes. This also applies to certain

PA 19255.

instructions.

long-term residents (as defined in section

Attach an English translation to all

877(e)) of the United States who lost

Penalties

documents in other languages.

residency on or after February 6, 1995. If

the decedent's average annual net

The law provides for penalties for both

income tax liability or net worth exceeds

late filing of returns and late payment of

Cat. No. 63118N

Instructions For Form 706-Na - United States Estate (And Generation-Skipping Transfer) Tax Return - 1999

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