Form 706

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

What Form 706 is

Form 706 is the IRS return used by an estate’s executor to:
* Calculate federal estate tax owed by a deceased U.S. citizen or resident, and
* Calculate the generation‑skipping transfer (GST) tax on transfers to skip persons.

The form also documents the estate’s assets, deductions, and beneficiaries to determine taxable estate value and any tax due.

Filing threshold and who must file

An executor must file Form 706 if, for the decedent’s year of death, the sum of:
1. The decedent’s gross estate (valued at date of death),
2. Adjusted taxable gifts made after December 31, 1976, and
3. Any specific exemptions (per Section 2521)
exceeds the federal exclusion amount.

Recent exclusion amounts:
* $13.99 million for decedents dying in 2025
* $13.61 million for decedents dying in 2024

An executor must also file Form 706 regardless of estate size if they elect portability of the deceased spouse’s unused exclusion (DSUE) to the surviving spouse.

What counts in the gross estate

Common items included in the gross estate:
* All property in which the decedent had an interest (including real estate outside the U.S.)
* Transfers made during life for less than adequate consideration
* Annuities
* Includable portion of joint estates with rights of survivorship and tenancies by the entirety
* Certain life insurance proceeds
* Property subject to a general power of appointment
* Dower/curtesy or statutory interests of surviving spouse
* Community property interests

The IRS generally uses a stepped‑up basis (fair market value at date of death) when valuing inherited property.

Generation‑skipping transfer (GST) tax

GST tax applies when a skip person (typically a grandchild or anyone at least 37½ years younger than the grantor) receives a taxable gift or inheritance. The GST tax shares the same lifetime exemption as the estate and gift tax (see amounts above). Form 706 helps determine GST liability when applicable.

Related forms

  • Form 706‑NA — Estate and GST tax return for nonresident alien decedents.
  • Form 706‑GS(D) — GST tax return for distributions from a trust to a skip person.
  • Form 706‑GS(D‑1) — Notification of distribution from a generation‑skipping trust (completed by trustees to inform skip persons).
  • Form 4768 — Application for automatic 6‑month extension to file/pay estate and GST taxes.
  • Form 709 — Gift (and GST) tax return filed by individuals to report gifts (distinct from Form 706, which is filed by an executor after death).
  • Form 1041 — U.S. Income Tax Return for Estates and Trusts (filed by estates that generate more than $600 in gross income).

Filing deadline and how to file

  • Due date: File and pay estate/GST tax within nine months of the decedent’s date of death.
  • Extension: An automatic 6‑month extension to file (and/or pay) is available using Form 4768.
  • Form 706 must be filed on paper (not electronically).

Mailing addresses:
* Regular mail:
Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999
* Private delivery services (DHL, FedEx, UPS):
Internal Revenue Submission Processing Center
333 W. Pershing Road
Kansas City, MO 64108
* Amended Form 706 (use regardless of delivery method):
Internal Revenue Service Center
Attn: E&G, Stop 824G
7940 Kentucky Drive
Florence, KY 41042‑2915

Payment:
* Make checks payable to “United States Treasury.” Include the decedent’s name, Social Security number, and “Form 706” on the check.
* Electronic payment is available via the Electronic Federal Tax Payment System (EFTPS).

Common questions

  • Do all estates have to file Form 706?
    No. Only estates whose gross estate plus adjusted taxable gifts and specific exemptions exceed the yearly exclusion, or estates electing portability, must file.

  • How is Form 706 different from Form 709?
    Form 706 is filed by an executor after death to report the estate and compute estate/GST tax. Form 709 is filed by living individuals to report gifts that exceed annual exclusions.

  • When does an estate file Form 1041?
    If the estate earns more than $600 of gross income in a tax year, the estate must file Form 1041 and may need to pay estimated taxes quarterly.

Key takeaways

  • Form 706 reports a decedent’s estate to determine federal estate and GST tax liability.
  • It generally must be filed within nine months of death if the estate (plus adjusted gifts and exemptions) exceeds the applicable exclusion ($13.99M for 2025; $13.61M for 2024) or if portability is elected.
  • Related filings include Form 706‑NA (nonresident aliens), Form 706‑GS(D) (trust distributions), Form 4768 (extension), and Form 709 (gift tax returns by living donors).
  • Executors should collect thorough asset valuations, account for stepped‑up basis rules, and follow IRS instructions for filing and payment.