form 706 estate tax filing

[dosumi]

What is the name of your state? CA

Not sure if this is the correct place to post, but here goes.

I went the IRS web site to find some info for a friend.
The question is when to file this form, accountant and Lawyer have different opinions.
One says that if less than 2 mil you don't have to file form 706, the other says you do.
I looked a the instructions for the form and I think they don't have to file.
Then I looked at the actual form and on the top it states that the form applies to any who dies between 2005 and January 1 2007. The deceased died 1-6-2007, I can't find any info for someone who dies after that date?

Thanks.

 

[LdiJ]

What is the name of your state? CA

Not sure if this is the correct place to post, but here goes.

I went the IRS web site to find some info for a friend.
The question is when to file this form, accountant and Lawyer have different opinions.
One says that if less than 2 mil you don't have to file form 706, the other says you do.
I looked a the instructions for the form and I think they don't have to file.
Then I looked at the actual form and on the top it states that the form applies to any who dies between 2005 and January 1 2007. The deceased died 1-6-2007, I can't find any info for someone who dies after that date?

Thanks.

If you have an accountant, let your accountant handle things. He/she knows best what needs to be filed.

 

[tecate]

The answer depends on citizen\resident\non-resident status and whether the Decedent made any taxable gifts. Here is the Internal Revenue Code section governing the filing threshold. For 2007, the applicable exclusion amount is $2 mil.

§ 6018. Estate tax returns

(a) Returns by executor
(1) Citizens or residents
In all cases where the gross estate at the death of a citizen or resident exceeds the applicable exclusion amount in effect under section 2010 (c) for the calendar year which includes the date of death, the executor shall make a return with respect to the estate tax imposed by subtitle B.
(2) Nonresidents not citizens of the United States
In the case of the estate of every nonresident not a citizen of the United States if that part of the gross estate which is situated in the United States exceeds $60,000, the executor shall make a return with respect to the estate tax imposed by subtitle B.
(3) Adjustment for certain gifts
The amount applicable under paragraph (1) and the amount set forth in paragraph (2) shall each be reduced (but not below zero) by the sum of—
(A) the amount of the adjusted taxable gifts (within the meaning of section 2001 (b)) made by the decedent after December 31, 1976, plus
(B) the aggregate amount allowed as a specific exemption under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) with respect to gifts made by the decedent after September 8, 1976.


From time to time, there is good reason to file a return despite a gross estate below the filing limit.

 

[FlyingRon]

http://www.irs.gov/publications/p950/

You don't need to file if the gross estate is less than $2mil for 2006

 

[LdiJ]

From time to time, there is good reason to file a return despite a gross estate below the filing limit.

I agree with this. One good reason for filing is to establish "basis" in any hard assets that are part of the estate.

 

[dosumi]

The problem with the IRS info is it states that it applies to someone who dies before Jan 1 2007, there is nothing that states for after 1-1-2007?
that is the confusing part.

 

[tecate]

It takes time for them to update their publications and forms. Good for you that you caught the distinction.