United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States

Instructions for Form 706-NA
(Rev. September 2016)

Department of the Treasury
Internal Revenue Service

United States Estate (and Generation-Skipping Transfer) Tax Return
Estate of nonresident not a citizen of the United States
Section references are to the Internal Revenue
Code unless otherwise noted.

What's New
Consistent basis reporting. On July
31, 2015, the Surface Transportation
and Veterans Health Care Choice
Improvement Act of 2015 (Public Law
114-41) was enacted. Section 2004 of
the Act requires that estates report, both
to the IRS and the recipient, the estate
tax value of each asset included in the
gross estate within 30 days of filing
Form 706-NA or earlier if the return is
filed late. It also requires that the basis
of certain assets when sold or otherwise
disposed of must be consistent with the
basis (estate tax value) of the asset
when it was received by the beneficiary.
To satisfy the new reporting
requirements, the estate must file Form
8971, Information Regarding
Beneficiaries Acquiring Property from a
Decedent. See Form 8971 and
Instructions at www.irs.gov/form-8971.
Additional guidance and other
information necessary to fulfill the
requirements of the Act are being
developed. If you believe the new
requirements impact this estate or its
beneficiaries, please check
www.irs.gov/form706 for additional
information.
Closing letter procedure. Effective for
all estate tax returns filed on or after
June 1, 2015, closing letters will not be
issued unless requested by the
executor of the estate or the designated
power of attorney. To allow time for
processing, please wait at least four
months after filing Form 706-NA to
request a closing letter.
Instead of an estate tax closing letter,
the executor of the estate may request
an account transcript, which reflects
transactions including the acceptance of
Form 706-NA and the completion of an
examination. Account transcripts are
available online to registered tax
professionals using the Transcript
Delivery System (TDS) or to authorized
representatives making requests using
Form 4506-T. Specific instructions are
available for requesting online
transcripts using the TDS or hardcopy
transcripts using Form 4506-T. For
Sep 01, 2016

questions about estate tax closing letter
requests, call (866) 699-4083 or see the
Frequently Asked Questions on Estate
Tax at IRS.gov.

Future Developments

For the latest information about
developments related to Form 706-NA
and its instructions, such as legislation
enacted after they were published, go to
www.irs.gov/form706-NA.

General Instructions
Purpose of Form

Form 706-NA is used to compute estate
and generation-skipping transfer (GST)
tax liability for nonresident alien
decedents. The estate tax is imposed
on the transfer of the decedent's taxable
estate rather than on the receipt of any
part of it.
For information about transfer

TIP certificates for U.S. assets, write
to the following address.

Internal Revenue Service
Cincinnati, OH 45999
Stop 824G
Note. In order to complete this return,
you must obtain Form 706, United
States Estate (and Generation-Skipping
Transfer) Tax Return, and its
instructions. You must attach schedules
from Form 706 if you intend to claim a
marital deduction, a charitable
deduction, a qualified conservation
easement exclusion, or a credit for tax
on prior transfers, or if you answer “Yes”
to question 5, 7, 8, 9a, 9b, or 11 in Part
III, General Information. You will need
the instructions to Form 706 to explain
how to value stocks and bonds. Make
sure that you use the version of Form
706 that corresponds to the date of the
decedent's death.

Definitions

The following definitions apply in these
instructions.
United States. The United States
means the 50 states and the District of
Columbia.

Cat. No. 63118N

Nonresident alien decedent. A
nonresident alien decedent is a
decedent who is neither domiciled in nor
a citizen of the United States at the time
of death. For purposes of this form, a
citizen of a U.S. possession is not a
U.S. citizen.
Long-term United States resident. A
long-term U.S. resident is an alien who
has been a lawful permanent resident of
the U.S. (green card holder) in at least 8
of the last 15 tax years ending with the
tax year in which U.S. residency is
terminated.
Executor. An executor is the personal
representative, executor, executrix,
administrator, or administratrix of the
deceased person's estate. If no
executor is appointed, qualified, and
acting in the United States, every
person in actual or constructive
possession of any of the decedent's
property must file a return. If more than
one person must file, it is preferable that
they join in filing one complete return.
Otherwise, each must file as complete a
return as possible, including a full
description of the property and each
person's name who holds an interest in
it.
Executors must provide
documentation proving their status.
Documentation will vary but may include
a certified copy of the will or a court
order designating the executor(s). A
statement by the executor(s) attesting to
their status is insufficient.
U.S. expatriate. Special estate tax
rules may apply to decedents who
expatriated from the United States prior
to death. For these purposes, both U.S.
citizens who relinquished their
citizenship and long-term residents, as
defined in section 877(e), who have
surrendered their green card or taken a
position under a tax treaty that they are
solely a resident of the other country,
are treated as expatriates.
For decedents who expatriated prior
to June 17, 2008, and were still subject
to the 10-year alternative tax regime of
section 877(b) on the date of death, the
rules in section 2107 apply to determine
the value of decedent’s U.S. taxable
estate. For decedents who expatriated
on or after June 17, 2008, and were

“covered expatriates” on the date of
death, as defined in section 877A(g)(1),
the rules in section 2107 do not apply,
but the rules of section 2801 may apply.
So, decedents who expatriated on or
after June 17, 2008 are generally
subject to U.S. estate tax as all other
nonresident alien decedents, and the
references to “U.S. expatriate” in these
instructions refer only to decedents who
expatriated prior to June 17, 2008. See
the instructions for Question 6a and
Question 6b, later. Also, see effective
dates later for more information.
Expatriation after June 3, 2004,
but before June 17, 2008. A decedent
would have been subject to the 10-year
alternative tax regime of section 877(b)
if the individual met one of three tests
set out under section 877(a) relating to
1. average annual net income tax
liability,
2. net worth, and
3. certification of tax compliance.
See sections 877 and 2701, and Form
8854, Initial and Annual Expatriation
Statement, as it existed in the relevant
tax year for additional information.
Expatriation on or after February
6, 1995, through June 3, 2004. A
decedent would have been presumed to
be subject to the 10-year alternative tax
regime of section 877(b) if the
individual's average annual net income
tax liability or net worth exceeded
certain limits, absent a private letter
ruling reversing the presumption. See
sections 877 and 2701 and Form 8854
as they existed in the relevant tax year
for additional information.

Who Must File

The executor must file Form 706-NA if
the date of death value of the
decedent’s U.S.-situated assets,
together with the gift tax specific
exemption and the amount of adjusted
taxable gifts, exceeds the filing
threshold of $60,000. The gift tax
specific exemption refers to the amount
allowed for gifts made by the decedent
between September 9, 1976 and
December 31, 1976, inclusive. The
amount of adjusted taxable gifts refers
to the amount of adjusted taxable gifts
made by the decedent after December
31, 1976.

When To File

File Form 706-NA within 9 months after
the date of death unless an extension of
time to file was granted.

If you are unable to file Form 706-NA
by the due date, use Form 4768,
Application for Extension of Time To
File a Return and/or Pay U.S. Estate
(and Generation-Skipping Transfer)
Taxes, to apply for an automatic
6-month extension of time to file. Check
the “Form 706-NA” box in Part II of Form
4768.

Where To File

File Form 706-NA at the following
address.
Department of the Treasury
Internal Revenue Service Center
Cincinnati, OH 45999

Penalties

The law provides for penalties for both
late filing of returns and late payment of
tax unless there is reasonable cause for
the delay. There are also penalties for
willful attempts to evade or defeat
payment of tax.
The law also provides for penalties
for valuation understatements that
cause an underpayment of tax. See
sections 6662(g) and (h) for more
details.
Reasonable cause determinations. If
you receive a notice about penalties
after you file Form 706-NA, send an
explanation and we will determine if you
meet reasonable cause criteria. Do not
attach an explanation when you file
Form 706-NA. Explanations attached to
the return at the time of filing will not be
considered.
Return preparer. The Small Business
and Work Opportunity Tax Act of 2007
(2007 Act) extended the application of
return preparer penalties to preparers of
estate tax returns. Under section 6694,
as amended by the 2007 Act, estate tax
return preparers who prepare any return
or claim for refund that reflects an
understatement of tax liability due to
willful or reckless conduct are subject to
a penalty of $5,000 or 50% of the
income derived (or income to be
derived), whichever is greater, for the
preparation of each such return. See
section T.D. 9436, 2009-3 I.R.B. 268,
available at http://www.irs.gov/pub/irsirbs/irb09-03.pdf) and Ann. 2009-15,
2009-11 I.R.B. 687 available at http://
www.irs.gov/pub/irs-irbs/irb09-11.pdf for
more information.

Death Tax Treaties

Death tax treaties are in effect with the
following countries.
-2-

Australia
Austria
Canada*
Denmark
Finland
France
Germany
Greece

Ireland
Italy
Japan
Netherlands
Norway
South Africa
Switzerland
United Kingdom

*Article XXIX B of the United States—Canada
Income Tax Treaty

If you are reporting any items on this
return based on the provisions of a
death tax treaty or protocol, attach a
statement to this return indicating that
the return position is treaty-based. See
Regulations section 301.6114-1 for
details.

Specific Instructions
Attachments

If the decedent died testate (with a
legally valid will), attach a certified copy
of the will to Form 706-NA. If you are
unable to obtain a certified copy, attach
a copy of the will and explain why it
could not be certified.
You must also attach a copy of the
decedent's death certificate.
For closely held or inactive corporate
stock, attach the balance sheets,
particularly the one nearest the
valuation date, and statements of the
net earnings or operating results and
dividends paid for each of the 5
preceding years. Attach any other
documents, such as appraisals, needed
for explanation. Also attach copies of all
available U.S. gift tax returns the
decedent filed. Other documents may
be required as explained in these
instructions.
Attach an English translation to all
documents in other languages.

How To Complete Form
706-NA

First, enter the decedent's name and the
other information requested in Part I. On
line 2, enter the decedent's social
security number (SSN) if applicable, or
the decedent's individual taxpayer
identification number (ITIN), but only if
the decedent had previously used the
ITIN to file other US tax returns. If the
decedent does not have an SSN or a
previously used ITIN, the IRS will assign
an Internal Revenue Service Number
(IRSN) to the decedent. If the decedent
has already been assigned an IRSN
please enter the number on line 2. If the

decedent does not have an SSN, ITIN,
or an IRSN leave line 2 blank. Then
answer all of the questions in Part III.
The estate tax is imposed on the
decedent's gross estate in the United
States, reduced by allowable
deductions. Compute the gross estate
in the United States on Schedule A.
Reduce the Schedule A total by the
allowable deductions to derive the
taxable estate on Schedule B, and
figure the tax due using Part II–Tax
Computation.

Part III. General Information
Question 6a. If you answer “Yes,”
please attach a statement listing:
The citizenship of the decedent's
parents,
Whether the decedent became a U.S.
citizen through a naturalization
proceeding in the United States, and
When the decedent lost U.S.
citizenship or residency.
Question 6b. If you answered “Yes,”
and the decedent lost his or her U.S.
citizenship or long-term residence within
10 years of death and prior to June 17,
2008, but maintain that avoiding U.S.
taxes was not a principal purpose for
the decedent's loss of citizenship or
residency, attach documents to sustain
your position. See Definitions, earlier.
Question 9. A general power of
appointment is any power of
appointment exercisable in favor of the
decedent, the decedent's estate, the
decedent's creditors, or the creditors of
the decedent's estate, and includes the
right of a beneficiary to appropriate or
consume the principal of a trust. For a
complete definition, see section
2041(b).

Schedule A

Before you complete Schedule A, you
must determine what assets are
included in the decedent's entire gross
estate, wherever located. However, list
on Schedule A only those assets
located in the United States. Enter the
total value of assets located outside the
United States on line 2 of Schedule B.
Entire gross estate. The entire gross
estate is figured the same way for a
nonresident alien decedent as for a U.S.
citizen or resident. It consists of all
property the decedent beneficially
owned, wherever located, and includes
the following property interests:
Generally, the full value of property
the decedent owned at the time of death
as a joint tenant with right of
survivorship (but if the surviving spouse
is a U.S. citizen, then only half the value

of property held by the decedent and
surviving spouse either as joint tenants
with right of survivorship or as tenants
by the entirety). For exceptions, see the
instructions for Form 706, Schedule E;
Property the decedent and a
surviving spouse owned as community
property to the extent of the decedent's
interest in the property under applicable
state, possession, or foreign law;
A surviving spouse's dower or curtesy
interest and all substitute interests
created by statute;
Proceeds of insurance on the
decedent's life, generally including
proceeds receivable by beneficiaries
other than the estate;
Several kinds of transfers the
decedent made before death;
Property in which the decedent either
held a general power of appointment at
the time of death, or used or released
this power in certain ways before
death; and
Certain annuities to surviving
beneficiaries.
For additional information concerning
joint tenancies, tenancies by the
entirety, annuities, life insurance,
transfers during life, and powers of
appointment, see the Instructions for
Form 706.
Enter on Schedule A all of the assets
that meet both the following tests.
They are included in the entire gross
estate and
They are located in the United States.
Determining where assets are located. Unless a treaty provides otherwise
(see Death Tax Treaties, earlier), use
the following rules to determine whether
assets are located in the United States.
Real estate and tangible personal
property. Real estate and tangible
personal property are located in the
United States if they are physically
located there.
Note. An exception is made for works
of art that are owned by a nonresident
alien and are located within the United
States, if on the date of death the works
of art are:
Imported solely for public exhibition,
On loan to a non-profit public gallery
or museum, and
On exhibition or en route to or from
exhibition.
Stock. Generally, no matter where
stock certificates are physically located,
stock of corporations organized in or
under U.S. law is property located in the
United States, and all other corporate

-3-

stock is property located outside the
United States.
Stock in a Regulated Investment
Company (RIC). For a nonresident
alien decedent who died after 2004 and
before 2012, a portion of stock in a RIC
is treated as property located outside
the United States in the proportion of the
RIC's qualifying assets in relation to the
total assets owned by the RIC at the
end of the quarter immediately
preceding the decedent's death.
Qualifying assets are assets that, if
owned directly by the decedent, would
have been:
Bank deposits and amounts
described in section 871(i)(3),
Portfolio debt obligations,
Certain original issue discount
obligations,
Debt obligations of a U.S. corporation
that are treated as giving rise to foreign
source income, and
Other property not within the United
States.
See section 2105(d) for details.
Insurance proceeds. Proceeds of
insurance policies on the decedent's life
are property located outside the United
States.
Debt obligations within U.S. Debt
obligations are generally property
located in the United States if they are
debts of a U.S. citizen or resident, a
domestic partnership or corporation, a
domestic estate or trust, the United
States, a state or state's political
subdivision, or the District of Columbia.
Debt obligations outside U.S. The
following debt obligations are generally
treated as located outside the United
States:
Debt obligations (whether registered
or unregistered) issued after July 18,
1984, if the interest on them would be
eligible for tax exemption under section
871(h)(1) had such interest been
received by the decedent at the time of
his death. However, if the debt earns
contingent interest, some or all of it may
be considered property in the United
States (section 2105(b)(3)).
A debt obligation of a domestic
corporation if the interest from it (had it
been received at the time of death)
would have been treated as income
from outside the United States because
the corporation derived less than 20% of
its gross income from sources in the
United States during its 3 tax years
before the decedent's death (section
861(a)(1)(A)).
Certain short-term original issue
discount debt obligations.

See section 2105(b)(4) for details.
Deposits. The following deposits
are treated as located outside the
United States if they are not effectively
connected with conducting a trade or
business within the United States:
A deposit with a U.S. bank or a U.S.
banking branch of a foreign corporation,
A deposit or withdrawable account
with a savings and loan association
chartered and supervised under federal
or state law,
An amount held by a U.S. insurance
company under an agreement to pay
interest, and
A deposit in a foreign branch of a
U.S. bank.
If an asset is included in the total
gross estate because the decedent
owned it at the time of death, apply the
above location rules as of the date of
the decedent's death. However, if an
asset is included in the decedent's total
gross estate under one of the transfer
provisions (sections 2035, 2036, 2037,
and 2038), it is treated as located in the
United States if it fulfills these rules
either at the time of the transfer or at the
time of death.
For example, if an item of tangible
personal property was physically
located in the United States on the date
of a section 2038 transfer but had been
moved outside the United States at the
time of the decedent's death, the item
would be considered still located in the
United States and should be listed on
Schedule A.
Describe the property on Schedule A
in enough detail to enable the IRS to
identify it. To determine the fair market
value of stocks and bonds, use the rules
in the Instructions for Form 706,
Schedule B—Stocks and Bonds.
Stocks. In descriptions of stock,
include:
The corporation's name;
The number of shares;
Whether common or preferred (if
preferred, what issue);
The par value (when needed for
identification);
Nine-digit CUSIP number (defined
below); and
The quotation at which reported.
Give the main exchange for listed
stock. For unlisted stock, give the post
office address of the main business
office of the corporation, the state in
which incorporated, and the
incorporation date.
Bonds. In bond descriptions,
include:

The quantity and denomination,
Obligor's name,
Maturity date,
Interest rate,
Each date when interest is payable,
Nine-digit CUSIP number, and
Series number (if more than one
issue).
Give the exchange where the bond is
listed. If it is unlisted, give the
corporation's main business office.
The CUSIP (Committee on Uniform
Security Identification Procedure)
number is a nine-digit number that is
assigned to all stocks and bonds traded
on major exchanges and many unlisted
securities. Usually the CUSIP number is
printed on the face of the stock
certificate. If you do not have a stock
certificate, the CUSIP may be found on
the broker's or custodian's statement or
by contacting the company's transfer
agent.
If you are required to file Schedule E,
G, or H from Form 706, you do not need
to enter the assets reported on those
schedules on Schedule A of this Form
706-NA. Instead, attach the schedules
to Form 706-NA, in column (b) enter
“Total from Schedule _ _ _ _ _, Form
706,” and enter the total values from the
attached schedules in either column (d)
or (e).
If the decedent was a U.S.
expatriate, the decedent is treated as
owning a prorated share of the U.S.
property held by a foreign corporation in
which he or she directly owned at least
10% of the voting stock and, with
related interests, controlled over 50% of
it (section 2107(b)).
Property valuation date. Generally,
property must be valued as of the date
of death. Columns (c) and (d) do not
apply in this case, and you may use the
space to expand descriptions from
column (b).
However, you may elect to use the
alternate valuation date. To make this
election, check the “Yes” box at the
beginning of Schedule A. If you do so,
the election applies to all property, and
you will need to complete each column
in Schedule A. Under this election, any
property distributed, sold, exchanged,
or otherwise disposed of within 6
months after the decedent's death is
valued as of the date of the disposition.
Any property not disposed of during that
period is valued as of the date 6 months
after the decedent's death.
You may not elect alternate valuation
unless the election will decrease both
the value of the gross estate and the net
-4-

estate tax due after application of all
allowable credits.

Qualified Conservation Easement
Exclusion
Under section 2031(c), you may elect to
exclude a portion of the value of land
that is subject to a qualified
conservation easement. You make the
election by attaching Schedule U of
Form 706 with all the required
information. To elect the exclusion, you
must include on Schedule A:
1. The decedent's interest in the
land that is subject to the exclusion and
2. Exclude the applicable value of
the land (amount from line 20,
Schedule U) that is subject to the
easement on Schedule A.
You must make the election on a
timely filed Form 706-NA, including
extensions. For more information, see
the Instructions for Form 706.

Canadian Small Estate Relief
If you are claiming a small estate
exemption (worldwide estate of a
Canadian resident decedent not more
than $1.2 million) from tax on U.S.
securities or certain other U.S. situs
property under the 1995 Protocol to the
Canadian income tax treaty, do not list
the exempt assets on Schedule A.
Instead, list those assets and their
values in a statement attached to the
return specifying that you are relying on
the treaty. To determine initially whether
the small estate exemption applies,
however, you must include the exempt
assets in the value of the entire gross
estate, wherever located, on lines 2 and
3 of Schedule B.

United States-United Kingdom
Treaty
If a decedent who was a United
Kingdom national, but was neither
domiciled in nor a national of the United
States, has property that is subject to
U.S. estate tax under the terms of the
U.S.-U.K. Treaty, the Treaty places a
limit on the amount of U.S. estate tax
owed on such property. The tax may not
exceed the U.S. estate tax that could
have been imposed on the decedent’s
worldwide assets had the decedent died
domiciled in the United States. If the
amount of tax on the property exceeds
that limit, the lower amount may be
reported as the tax due on the Form
706-NA. You must attach to the estate's
Form 706-NA a statement showing the

alternate computation and claiming the
benefit of the treaty provision. See
Paragraph 5 of Article 8 of the Treaty.

Schedule B. Taxable Estate
For the line 5 deduction to be
allowed, you must complete
CAUTION lines 1 through 4 and document
the amounts you include on lines 2 and
4.

!

To document the line 2 amount, attach a
certified copy of the foreign death tax
return or, if none was filed, a certified
copy of the estate inventory and the
schedule of debts and charges that
were filed with the foreign probate court
or as part of the estate's administration
proceedings. Supplement these
documents with attachments if they do
not set forth the entire gross estate
outside the United States. If more proof
is needed, you will be notified.
To document the line 4 amount,
attach an itemized schedule. For each
expense or claim, specify the nature
and amount and give the creditor's
name. Describe other deductions fully
and identify any particular property to
which they relate.
Line 2. The amount on line 2 is the total
value of the assets included in the entire
gross estate that were located outside
the United States. If you claim
deductions on line 5 of Schedule B, you
must also document the amount you
enter on line 2. See the first paragraph
under Schedule B, above.
If you elected the alternate valuation
date for property listed on Schedule A,
use it also for the assets reported on
line 2. Otherwise, value the amounts as
of the date of death.
Line 4. You may deduct the following
items whether or not they were incurred
or paid in the United States:
Funeral expenses;
Administration expenses;
Claims against the estate;
Unpaid mortgages and liens; and
Uncompensated losses that were
incurred during settlement of the estate
and that arose from theft or from
casualties, such as fires, storms, or
shipwrecks.
You may deduct only that part of a
debt or mortgage that was contracted in
good faith and for full value in money or
money's worth. You may deduct
mortgages only if you included the full
value of the mortgaged property in the
total gross estate on line 3. Do not
deduct tax on income received after
death or property taxes accrued after

death. See Line 7, for details on
deducting death taxes.
On line 4, show the total of these
deductible items. In general, the total is
limited to the amount on line 3.

If you later recover any of the state
tax for which you claim this deduction,
you must notify the IRS at the following
address within 30 days of receiving any
refund of state taxes.

Line 6. Use line 6 to enter the following
deductions.
Charitable deduction. Unless a
treaty allows otherwise, you may take a
charitable deduction only if the transfer
was to a domestic entity or for use in the
United States as described in the
Instructions for Form 706.
Attach Schedule O of Form 706. If
you claim the deduction under a treaty,
specify the applicable treaty and attach
a computation of the deduction.
Marital deduction. Unless a treaty
allows otherwise, you may only take a
marital deduction if the surviving spouse
is a U.S. citizen or if the property passes
to a qualified domestic trust (QDOT)
described in section 2056A and an
election is made on Schedule M of Form
706.
Attach Schedule M of Form 706, and
a statement showing your computation
of the marital deduction.
See section 2518 for the rules
governing disclaimers of interests in
property.
Line 7. You may take a deduction on
line 7 for death taxes (estate,
inheritance, legacy, or succession
taxes) you paid to any state or the
District of Columbia on property listed in
Schedule A. To calculate the deduction
for state death taxes, use the formula
below. Enter the result on line 7.
Total value of assets
in the gross estate subject
to state death taxes
Gross estate located in the
U.S. (line 1 of Schedule B)

x

Total state
death taxes
paid

Generally, you must claim this
deduction within 4 years of filing the
return. However, see section 2058(b)
for exceptions and periods of limitations.
For the deduction to be allowed, you
must file a certificate signed by the
appropriate official of the taxing state.
The certificate should show:
The total tax charged,
Any discount allowed,
Any penalties and interest imposed,
The tax actually paid, and
Each payment date.
If possible, attach the certificate to
this return; otherwise, please file it as
soon as possible.
-5-

Department of the Treasury
Internal Revenue Service Center
Cincinnati, OH 45999

Part II. Tax Computation
Lines 4 and 5. To determine the
tentative tax on the amount on line 2 (to
be entered on line 5) and the tentative
tax on the amount on line 3 (to be
entered on line 4), use Table A—Unified
Rate Schedule in the version of the
Instructions for Form 706 that
corresponds to the decedent's date of
death.
Line 7. Enter the unified credit. The
unified credit is allowed for the smaller
of the line 6 amount or the maximum
unified credit. In general, the maximum
unified credit is $13,000.
For a citizen of a U.S. possession
(see section 2209), the maximum
unified credit is the greater of:
$13,000 or
The product of $46,800 times a
fraction.
The numerator of the fraction is the
part of the gross estate located in the
United States (line 1 of Schedule B),
and the denominator is the entire gross
estate wherever located (line 3 of
Schedule B).
If the unified credit is affected by a
treaty, see section 2102(b)(3)(A).
Note. At the time this form went to print,
treaties with Australia, Canada, Finland,
France, Germany, Greece, Italy, Japan,
Norway, and Switzerland contained
provisions to which section 2102(b)(3)
(A) applies.
Any amount previously allowed
as a unified credit against the
CAUTION gift tax will reduce, dollar for
dollar, the unified credit allowed the
estate (section 2102(b)(3)(B)).

!

Line 9. Use line 9 to enter the following
credits.
Credit for federal gift taxes. See
sections 2102 and 2012. Attach
computation of credit.
Canadian marital credit. In
addition to the unified credit, a
nonrefundable marital credit may be
allowed if the executor elects this treaty
benefit and waives the benefit of any
estate tax marital deduction allowable

under U.S. law. The credit amount is
generally limited to the lesser of:
The unified credit allowed to the
estate (before reduction for any gift tax
unified credit) or
The amount of estate tax that would
otherwise be imposed by the United
States on the transfer of qualifying
property to the surviving spouse.
See the 1995 Canadian income tax
treaty protocol for details on computing
the credit. Also, attach a computation of
the credit and on the dotted line to the
left of the line 9 entry, write “Canadian
marital credit.”
Line 13. If you answered “Yes” to
Question 11 of Part III, you must
complete and attach Schedules R
and/or R-1 from Form 706.
For the purposes of Form 706-NA,
the GST tax is imposed only on
transfers of interests in property that are
part of the gross estate in the United
States. Therefore, when completing
Schedules R and/or R-1, you should
enter only transfers of interests in
property that you listed on Schedule A
of Form 706-NA. Otherwise, complete
Schedules R and/or R-1 according to
their instructions and enter the total GST
tax from Schedule R on line 13.

For details, see Regulations section
26.2663-2.
Line 15. Attach an explanation if earlier
payments were made to the IRS.
Line 16. Pay the balance due within 9
months after the decedent's death
unless an extension of time to pay was
granted. Make the check or money
order payable to the “United States
Treasury” for the face value in U.S.
dollars.
No checks of $100 million or more
accepted. The IRS cannot accept a
single check (including a cashier's
check) for amounts of $100,000,000
($100 million) or more. If you're sending
$100 million or more by check, you'll
need to spread the payments over two
or more checks, with each check made
out for an amount less than $100
million. The $100 million or more
amount limit does not apply to other
methods of payment (such as electronic
payments), so please consider paying
by means other than check.

Signature(s)
If there is more than one
executor, all listed executors are
CAUTION responsible for the return.
However, it is sufficient for only one of
the co-executors to sign the return.

Form 706-NA must be signed. The
executor must verify and sign the
declaration on page 1 under penalties of
perjury. The executor may use Form
2848, Power of Attorney and
Declaration of Representative, to
authorize another person to act for him
or her before the IRS. See the
instructions for Form 2848 and Circular
230, Regulations Governing Practice
before the Internal Revenue Service,
section 10.7(c)(1)(vii), for information on
representing a person or entity located
outside the United States.
Generally, anyone who is paid to
prepare the return must sign the return
in the space provided and fill in the
“Paid Preparer Use Only” area. See
section 7701(a)(36)(B) for exceptions.
In addition to signing and completing
the required information, the paid
preparer must give a copy of the
completed return to the executor.
Note. A paid preparer may sign original
or amended returns by rubber stamp,
mechanical device, or computer
software program.

!

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. You are required to give us the information. We need it to ensure that you are complying with these
laws and to allow us to figure and collect the right amount of tax. Subtitle B and section 6109, and the regulations, require you
to provide this information.
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. However, section 6103 allows or requires the Internal Revenue
Service to disclose information from this form in certain circumstances. For example, we may disclose information to the
Department of Justice for civil or criminal litigation, and to cities, states, the District of Columbia, and U.S. commonwealths or
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. Failure to provide this information, or providing false information, may subject you to penalties.
is:

The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time
Recordkeeping
1 hr., 25 min.

Learning about the law or
the form
52 min.

Preparing the form
1 hr., 36 min.

Copying, assembling, and
sending the form to the IRS
34 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 www.irs.gov/formspubs/. Click on “More Information” and
then on “Give us feedback.” You can also send your comments to the Internal Revenue Service, Tax Forms and Publications
Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send the tax form to this address. Instead, see
Where To File.

-6-