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Forma 706-GS(D) Návody

Pokyny pre formulár 706-GS(D), generácie-Skipping Transfer Tax Návrat pre distribúciu

Rev. Jún 2019

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  • Forma 706-GS(D) - Generácia-Skipping Transfer Tax Návrat pre distribúciu
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Department of the Treasury  
Internal Revenue Service  
Instructions for  
Form 706-GS(D)  
(Rev. June 2019)  
Generation-Skipping Transfer Tax Return for Distributions  
Section references are to the Internal  
Revenue Code unless otherwise noted.  
the year following the calendar year  
when the distributions were made.  
Department of the Treasury  
Internal Revenue Service Center  
Kansas City, MO 64999  
If you are not able to file the return  
by the due date, you may request an  
automatic 6-month extension of time  
to file by filing Form 7004, Application  
for Automatic Extension of Time To  
File Certain Business Income Tax,  
Information, and Other Returns. The  
extension is automatic, so you do not  
have to sign the form or provide a  
reason for your request. You must file  
Form 7004 on or before the regular  
due date of Form 706-GS(D). See  
Form 7004 for more information.  
Private delivery services (PDSs).  
You can use certain PDSs designated  
by the IRS to meet the "timely mailing  
as timely filing/paying" rule for tax  
returns and payments. Go to IRS.gov/  
PDS for the current list of designated  
Future Developments  
For the latest information about  
developments related to Form  
706-GS(D) and its instructions, such  
as legislation enacted after they were  
published, go to IRS.gov/  
If using a PDS, use this address.  
Internal Revenue Submission  
Processing Center  
333 W. Pershing  
Kansas City, MO 64108  
What’s New  
Penalties and Interest  
Section 6651 provides penalties for  
both late filing and late payment  
unless there is reasonable cause for  
the delay. The law also provides  
penalties for willful attempts to evade  
payment of tax.  
New filing address. Effective July 1,  
2019, Form 706-GS(D) will be filed in  
Kansas City, Missouri. See Where To  
File, later.  
General Instructions  
A return is late when it is filed after  
the due date, including extensions.  
The late filing penalty will not be  
imposed if the taxpayer can show that  
the failure to file a timely return is due  
to reasonable cause.  
Reasonable cause determinations.  
If you receive a notice about penalties  
and interest after you file Form  
Purpose of Form  
Form 706-GS(D) is used by a skip  
person distributee to calculate and  
report the tax due on distributions  
from a trust that are subject to the  
generation-skipping transfer (GST)  
The PDS can tell you how to get  
written proof of the mailing date.  
For the IRS mailing address to use  
if you’re using a PDS, go to IRS.gov/  
Who Must File  
706-GS(D), send us an explanation  
and we will determine if you meet  
reasonable cause criteria. Do not  
attach an explanation when you file  
Form 706-GS(D). Explanations  
attached to the return at the time of  
filing will not be considered.  
In general, any skip person who  
receives a taxable distribution from a  
trust must file Form 706-GS(D).  
Trustees are required to report  
taxable distributions to skip person  
distributees on Form 706-GS(D-1),  
Notification of Distribution From a  
Generation-Skipping Trust.  
PDSs can’t deliver items to  
P.O. boxes. You must use the  
U.S. Postal Service to mail  
any item to an IRS P.O. box address.  
Where To File  
On or before June 30, 2019, file Form  
706-GS(D) at the following address:  
Section 6662 provides a penalty for  
underpayment of GST taxes which  
exceeds $5,000, if the underpayment  
is due to a valuation understatement.  
A substantial valuation under-  
statement occurs when the reported  
value of property listed on Form  
706-GS(D) is 65% or less of the actual  
value of the property. A gross  
If you receive a Form 706-GS(D-1)  
and the inclusion ratio found on Part II,  
line 3, column d, is zero for all  
Department of the Treasury  
Internal Revenue Service Center  
Cincinnati, OH 45999  
distributions, you do not need to file  
Form 706-GS(D). If you are required  
to file Form 706-GS(D), you do not  
have to include any distributions that  
have an inclusion ratio of zero.  
If using a PDS, use this address.  
Internal Revenue Submission  
Processing Center  
valuation understatement occurs  
when the reported value of property  
listed on Form 706-GS(D) is 40% or  
less of the actual value of the  
201 West Rivercenter Blvd.  
Covington, KY 41011  
When To File  
The GST tax on distributions is figured  
and reported on a calendar year  
After June 30, 2019, file Form  
basis, regardless of your income tax  
accounting period. Generally, you  
must file Form 706-GS(D) on or after  
January 1 but not later than April 15 of  
706-GS(D) at the following address:  
Interest will be charged on taxes  
not paid by their due date, even if an  
extension of time to file is granted.  
Interest is also charged on any  
January 15, 2019  
Cat. No. 10828G  
additions to tax imposed by section  
6651 from the due date of the return  
(including any extensions) until the  
addition to tax is paid.  
Line 1b  
Column c  
For skip person distributees who are  
individuals, enter the distributee's  
social security number (SSN) here  
and leave line 1c blank. If the skip  
person distributee is a trust, see the  
instructions for line 1c. Do not enter a  
number on both line 1b and line 1c.  
There may be instances when the  
trustee has either not completed  
columns e (value) and f (tentative  
transfer) of Form 706-GS(D-1) or  
when you disagree with the amounts  
the trustee entered. If this occurs,  
attach a statement to this return  
showing what you think are the  
correct amounts and how you figured  
Return preparer. Estate tax return  
preparers who prepare any return or  
claim for refund which reflects an  
understatement of tax liability due to  
an unreasonable position are subject  
to a penalty equal to the greater of  
$1,000 or 50% of the income derived  
(or to be derived) for the preparation  
of each such return. Estate tax return  
preparers who prepare a return or  
claim for refund which reflects an  
understatement of tax liability due to  
willful or reckless conduct are subject  
to a penalty of $5,000 or 75% of the  
income derived (or income to be  
derived), whichever is greater, for the  
preparation of each such return. See  
sections 6694(a) and 6694(b), the  
related regulations, and  
Line 1c  
If the skip person distributee is a trust,  
enter the trust's employer  
To figure the tentative transfer  
(column c of this form), multiply the  
applicable inclusion ratio from Form  
706-GS(D-1), Part II, column d, by the  
value of the distribution. Use the  
following guidelines to determine the  
value of the distribution.  
identification number (EIN) and leave  
line 1b blank. Do not enter a number  
on both line 1b and line 1c.  
Line 2a  
If the skip person distributee is a trust,  
enter the trustee's name here. If the  
skip person distributee is a minor or is  
under some disability that precludes  
the individual from filing the return,  
enter the name of the person who is  
legally responsible for conducting the  
affairs of the distributee, such as a  
parent or guardian. Also, include the  
title or relationship to the distributee.  
The value of a distribution is its fair  
market value on the date of  
distribution. Fair market value (FMV)  
is the price at which the property  
would change hands between a  
willing buyer and a willing seller when  
neither is forced to buy or to sell, and  
both have reasonable knowledge of  
all the relevant facts. FMV may not be  
determined by a forced sale price nor  
by the sale price of the item in a  
market other than that in which the  
item is most commonly sold to the  
public. The location of the item must  
be taken into account whenever  
Announcement 2009-15, 2009-11  
I.R.B. 687 (available at IRS.gov/pub/  
irs-irbs/irb09-11.pdf), for more  
Line 2b  
Enter the address at which you wish  
to receive correspondence from the  
IRS regarding this return. If there is an  
entry on line 2a, the address entered  
here will normally be that of the  
Either the distributee or an authorized  
representative must sign Form  
If you fill in your own return, leave  
the Paid Preparer Use Only space  
blank. If someone prepares your  
return and does not charge you, that  
person should not sign the return.  
person listed on line 2a, rather than  
the individual or trust listed on line 1a.  
Determine the value of the property  
distributed as of the date of the  
distribution. The date of distribution is  
listed in Form 706-GS(D-1), Part II,  
column c.  
Reduce the value of any property  
being reported in Part II by the amount  
of any consideration provided by the  
Part II  
Report all the taxable distributions  
with inclusion ratios greater than zero  
that you received during the year. The  
trustee will report these distributions  
to you on Form 706-GS(D-1). Attach a  
copy of each Form 706-GS(D-1) you  
received during the year to this return.  
You should also keep a copy for your  
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  
Value the stock of close  
corporations or inactive stock on the  
basis of net worth, earnings, earning  
and dividend capacity, and other  
relevant factors. For such stock,  
attach balance sheets, particularly the  
one nearest the date of the  
If you need more space than is  
provided in Part II, attach an additional  
sheet of the same size and use the  
same format that is used in Part II.  
Make sure that the total tentative  
transfers from the continuation sheet  
are included on line 3 of Part II.  
Note. A paid preparer may sign  
original or amended returns by rubber  
stamp, mechanical device, or  
computer software program.  
distribution, and statements of net  
earnings or operating results and  
dividends paid for each of the 5  
preceding years.  
Column b  
In column b, use the same item  
number that was used for the  
corresponding distribution on Form  
706-GS(D-1). If you receive  
distributions from more than one trust,  
you may need to repeat item  
Specific Instructions  
Part I  
Reduce the reported value of real  
estate by the amount of any  
outstanding lien against the property  
on the date of distribution. Attach  
copies of any such liens. Explain how  
the reported values were determined  
and attach copies of any appraisals.  
Line 1a  
If the skip person distributee is a trust,  
enter the name of the trust here.  
For more information, see the  
Instructions for Form 706, United  
States Estate (and Generation-  
Skipping Transfer) Tax Return. You  
can get the Instructions for Form 706,  
and other IRS forms and publications,  
by calling 800-TAX-FORM or by  
visiting IRS.gov.  
additional allowable expense is  
incurred after the return is filed, file  
Form 843, Claim for Refund and  
Request for Abatement, to claim a  
generation-skipping distribution  
Line 9  
Make your check payable to “United  
States Treasury.” Please write your  
SSN (or EIN), the year, and “Form  
706-GS(D)” on the check to assist us  
in posting it to the proper account.  
Enclose, but do not attach, the  
Example. The following example  
illustrates the rules above.  
You listed three distributions in Part  
II of Form 706-GS(D). The value of the  
first distribution is $10,000 and has an  
inclusion ratio of 0.25. The value of  
the second distribution is $20,000 and  
has an inclusion ratio of 0.33. The  
value of the third distribution is  
Part III  
Line 4  
payment with Form 706-GS(D).  
Table of Maximum Tax Rates  
You may deduct any adjusted  
allowable expenses incurred in  
connection with the preparation of this  
Form 706-GS(D) or any other  
If the generation-skipping maximum  
$30,000 and has an inclusion ratio of  
0.50. You received the completed  
return from the preparer along with the  
bill for the preparer's fee on April 14  
and filed the return on April 15. You  
paid the preparer's $200 fee on April  
20. The adjusted allowable expense  
you should report on line 4 of Part III is  
$80, calculated as follows.  
transfer occurred:  
tax rate is:  
expenses incurred in connection with  
the determination, collection, or  
refund of the GST tax reported or  
which should have been reported on  
this return from the amount of the  
distribution you received.  
After December 31, 2002, but  
before January 1, 2004 . .  
After December 31, 2003, but  
before January 1, 2005 . .  
After December 31, 2004, but  
before January 1, 2006 . .  
Adjusted allowable expenses are  
equal to the total allowable expenses  
multiplied by the inclusion ratio. If you  
have more than one inclusion ratio in  
Part II, column d, of Form 706-GS  
(D-1), prorate the total expense  
× 200 = 33.33 × 0.25 = 8 (rounded)  
After December 31, 2005, but  
before January 1, 2007 . .  
× 200 = 66.67 × 0.33 = 22 (rounded)  
After December 31, 2006, but  
before January 1, 2010 . .  
× 200 = 100 × 0.50 = 50  
among the inclusion ratios based on  
the relative value of each distribution  
made at the various inclusion ratios.  
After December 31, 2009, but  
before January 1, 2011 . .  
Adjusted allowable expense = 80  
You may deduct an expense even  
though it has not been paid at the time  
the return is filed as long as the  
amount of the expense is clearly  
ascertainable at that time. If an  
Line 6  
After December 31, 2010, but  
before January 1, 2013 . .  
Enter, using the table below, the  
applicable rate in effect at the time the  
After December 31,  
2012 . . . . . . . . . . . . . .  
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. We need it to figure and collect the right amount of tax. Subtitle B, Estate and Gift  
Taxes, of the Internal Revenue Code imposes a tax on certain distributions from a trust to a skip person; section 6109  
requires you to provide your identification number. This form is used to figure the amount of the taxes that you owe.  
Failure to provide this information in a timely manner, or providing false or fraudulent information, may subject you to  
penalties. We may disclose this information to the Department of Justice for civil and criminal litigation, and to cities,  
states, the District of Columbia, and U.S. commonwealths and 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.  
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.  
The time needed to complete and file this form will vary depending on individual circumstances. The average  
estimated time is:  
Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Learning about the law or the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Preparing the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Copying, assembling, and sending the form to the IRS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
6 min.  
13 min.  
18 min.  
20 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 IRS.gov/FormComments. Or you can write to the  
Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC  
20224. Do not send the form to this address. Instead, see Where To File, earlier.