SUPPORTING STATEMENT
U.S. Estate Tax Return for Qualified Domestic Trusts
Form 706-QDT
OMB Control Number 1545-1212
CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
IRC section 2056A imposes a tax on certain taxable events involving qualified domestic trusts and establishes rules for computing the tax. "Taxable events" are taxable distributions from the qualified domestic trust, the failure of the trust to qualify as a qualified domestic trust, and the death of the trust beneficiary. Form 706‑QDT is used to compute and report the tax due on these taxable events. Either the trustee in the case of a single qualified domestic trust, or the designated filer in the case of multiple trusts is liable for filing the return and paying the tax.
Normally, the trustee/designated filer will file a single form annually and report on it all taxable events that occurred during the prior calendar year. It is possible, however, that a second return would be filed in the year of the trust beneficiary's death or the year the trust fails to qualify as a qualified domestic trust. That second return would be the final return of the trust and is due 9 months following the date of failure to qualify or the date of death. The trustee/designated filer will not file Form 706‑QDT for any year in which no taxable event occurs.
2. USE OF DATA
IRS will use the information on Form 706‑QDT to enforce the QDT tax provisions of the Internal Revenue Code, i.e., to verify that the taxes have been properly computed. The IRS also will use the information on Form 706‑QDT to prepare a quadrennial Statistics of Income report available to the public.
3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
We have no plans to offer electronic filing because of low filing volume compared to cost of electronic enabling.
EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency wherever possible.
5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
There are no small entities affected by this collection.
CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES
Form 706QDT is only collected on as needed basis due to a tax triggering event. Less frequent collection of this form is not possible.
7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
There are no special circumstances requiring data collection to be inconsistent with Guidelines in 5 CFR 1320.5(d)(2).
CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS
Periodic meetings are held between IRS personnel and representatives of the American Bar Association, the National Society of Public Accountants, the American Institute of Certified Public Accountants, and other professional groups to discuss tax law and tax forms. During these meetings, there is an opportunity for those attending to make comments regarding Form 706-QDT.
In response to the Federal Register Notice (81 FR 66133), dated September 26, 2016, we received no comments during the comment period regarding Form 706-QDT.
9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
No payment or gift has been provided to any respondents.
ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by 26 USC 6103.
11. JUSTIFICATION OF SENSITIVE QUESTIONS
A privacy impact assessment (PIA) has been conducted for information collected under this request as part of the “Individual Master File (IMF)” system and a Privacy Act System of Records notice (SORN) has been issued for this system under IRS 24.030--Customer Account Data Engine Individual Master File, formerly Individual Master File, and IRS 34.037--IRS Audit Trail and Security Records System. The Department of Treasury PIAs can be found at https://www.irs.gov/uac/Privacy-Impact-Assessments-PIA.
Title 26 USC 6109 requires inclusion of identifying numbers in returns, statements, or other documents for securing proper identification of persons required to make such returns, statements, or documents and is the authority for social security numbers (SSNs) in IRS systems.
12. ESTIMATED BURDEN OF INFORMATION COLLECTION
The burden estimate is as follows:
Number of Time per Total
Responses Response Hours
Form 706-QDT 80 4.46 357
The following regulation imposes no additional burden. Please continue to assign OMB number 1545-1212 to this regulation.
20.6166A-1
13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
There are no start-up costs associated with this collection.
14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
The primary cost to the government consists of the cost of printing Form 706-QDT. We estimate that the cost of printing the form is $1,450.
REASONS FOR CHANGE IN BURDEN
There is no change in the paperwork burden previously approved by OMB. We are making this submission to renew the OMB approval.
16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
There are no plans for tabulation, statistical analysis and publication.
REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
See attachment.
EXCEPTIONS TO THE CERTIFICATION STATEMENT
There are no exceptions to the certification statement.
Note: The following paragraph applies to all of the collections of information in this submission:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
| File Type | application/msword |
| Author | Department of Treasury |
| Last Modified By | Department of Treasury |
| File Modified | 2016-12-21 |
| File Created | 2016-12-21 |