What Is Form 706-NA: United States Estate (and Generation-Skipping Transfer) Tax Return?

The Form 706-NA: United States Estate (and Generation-Skipping Transfer) Tax Return is a tax form distributed by the IRS that is used to calculate tax liabilities for estates of individuals with U.S.-based assets that are part of their estate and who are not citizens and are not considered resident aliens.

Key Takeaways

  • Form 706-NA is used to calculate tax liabilities for estates of individuals with U.S.-based assets that are part of their estate who are not citizens.
  • U.S.-based assets that would be considered part of an estate would include things like real estate, physical personal property, and securities related to U.S. companies.
  • Executors of estates that would be required to complete Form 706-NA must file a tax return if the fair market value of the estate was at least $60,000.

Who Can File Form 706-NA: United States Estate (and Generation-Skipping Transfer) Tax Return?

This IRS form is used to figure out the generation-skipping transfer tax liability for estates of non-resident aliens of the United States. The generation-skipping tax is levied when the transfer of the decedent's estate takes place rather than when it is received by a beneficiary.

A non-resident alien is someone who does not live in the United States and is not a citizen. The IRS has specific rules for how a person meets the criteria of a resident alien. Those non-citizens who do not satisfy these requirements would be considered non-resident aliens.

U.S.-based assets that would be considered part of an estate would include things like real estate, physical personal property, and securities related to U.S. companies. These American-based stocks would be subject to U.S. estate taxes even if the certificates were physically stored outside of the country.

Form 706-NA: United States Estate (and Generation-Skipping Transfer) Tax Return must be filed within nine months following the person’s death; however, a six-month deadline extension can be requested, which would allow the estate a total of 15 months to submit their tax return paperwork.

How to File Form 706-NA: United States Estate (and Generation-Skipping Transfer) Tax Return

Executors of estates that would be required to complete Form 706-NA must file a tax return if the fair market value of the estate was at least $60,000. However, in some cases, estates may still be required to file a tax return even if the estate value is less than that, namely if the deceased made large lifetime gifts of U.S. assets that took advantage of the unified credit exemption.

Several countries have death tax treaties with the United States, and executors reporting information on an estate from one of those countries may have to attach a statement stating that the death tax treaty is being applied.

This form has been revised and updated numerous times over the past 50 years. Form 706-NA is available to taxpayers by requesting Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. Citizens of U.S. possessions, such as the U.S. Virgin Islands, are not considered citizens in Form 706-NA.

Download Form 706-NA: United States Estate (and Generation-Skipping Transfer) Tax Return

Here is the IRS link, which includes instructions as well as the downloadable Form 706-NA: United States Estate (and Generation-Skipping Transfer) Tax Return.