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Форма 706-QDT Інструкції

Інструкція по формуванню 706-QDT, U.S. Повернення податку на прибуток за кваліфіковані побутові траси

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Department of the Treasury  
Internal Revenue Service  
Instructions for  
Form 706-QDT  
(Rev. September 2021)  
U.S. Estate Tax Return for Qualified Domestic Trusts  
Section references are to the Internal Revenue  
Code unless otherwise noted.  
unless the decedent's executor  
designated one U.S. trustee as the  
designated filer.  
Taxable event. A taxable event is any  
of the following.  
Future Developments  
1. Any distribution from a QDOT (and  
certain annuity payments) before  
the death of the surviving spouse,  
except:  
If there is more than one trustee for  
any single trust, each trustee is liable for  
filing the return and paying the tax.  
For the latest information about  
developments related to Form 706-QDT  
and its instructions, such as legislation  
enacted after they were published, go to  
a. Distributions of income to the  
If there is a designated filer, the  
trustee must still complete a separate  
Schedule B of Form 706-QDT for each  
trust for which he or she is the trustee  
and provide the completed Schedule B  
to the designated filer at least 60 days  
before the due date for filing Form  
706-QDT.  
surviving spouse, and  
b. Any distributions made to the  
surviving spouse on account of  
hardship.  
General Instructions  
Purpose of Form  
2. The death of the surviving spouse.  
The trustee or designated filer  
(described below) of a qualified  
domestic trust (QDOT) uses Form  
706-QDT to figure and report the estate  
tax due on:  
3. The failure of the trust to qualify as  
a QDOT.  
Designated Filer  
Hardship distribution. A distribution  
of principal is treated as made on  
If the surviving spouse is the beneficiary  
of more than one QDOT from a single  
decedent, and the decedent's executor  
has made such a designation, then the  
designated filer selected by the  
Certain distributions from the  
QDOT,  
account of hardship if it is made to the  
spouse from the QDOT in response to  
an immediate and substantial financial  
need relating to the spouse's health,  
maintenance, education, or support, or  
the health, maintenance, education, or  
support of any person that the surviving  
spouse is legally obligated to support.  
The value of the property remaining  
in the QDOT on the date of the  
surviving spouse's death, and  
The corpus portion of certain  
annuity payments.  
executor is liable for filing the return and  
paying the tax for all QDOTs. This  
designation can be made on either the  
decedent's estate tax return or the first  
Form 706-QDT that is timely filed.  
Under certain circumstances, the  
trustee/designated filer uses Form  
706-QDT to notify the IRS that the trust  
is exempt from future filing because the  
surviving spouse has become a U.S.  
citizen and meets the requirements  
Spousal election, later.  
Decedent. In these instructions,  
decedent means the grantor of the  
QDOT on whose estate tax return the  
executor makes the QDOT election.  
In this case, the trustee of each  
QDOT is responsible for completing  
Schedule B of Form 706-QDT for his or  
her trust and giving it to the designated  
filer.  
Surviving spouse. In these  
instructions, surviving spouse means  
the individual who is both the surviving  
spouse of the decedent and also the  
beneficiary of the decedent's QDOT.  
Definitions  
Qualified domestic trust. A qualified  
domestic trust (QDOT) is any trust that  
qualifies for an estate tax marital  
The QDOT rules apply only in those  
situations where a decedent's surviving  
spouse is not a U.S. citizen.  
Note. The term “spouse” includes an  
individual married to a person of the  
same sex if the couple is lawfully  
married under state (or foreign) law.  
See Rev. Rul. 2013-17, 2013-38 I.R.B.  
201, available at Rev. Rul. 2013-17, for  
more details.  
deduction under section 2056 and also  
meets all of the following requirements.  
Who Must File  
The trust instrument requires that at  
least one trustee be either a U.S.  
citizen or a domestic corporation.  
The trust instrument requires that no  
distribution of corpus from the trust  
may be made unless the trustee  
who is a U.S. citizen or a domestic  
corporation has the right to withhold  
from the distribution the QDOT tax  
imposed on the distribution.  
Either the trustee or the designated filer,  
as described below, must file Form  
706-QDT for any year in which the  
QDOT has a taxable event (defined  
below) or makes a distribution on  
account of hardship.  
When To File  
Form 706-QDT is an annual return.  
Trustee  
Generally, the return to report  
If the surviving spouse is the beneficiary  
of only one QDOT, the trustee of that  
QDOT is liable for filing Form 706-QDT  
and paying the tax.  
distributions is due on or after January 1  
but not later than April 15 of the year  
following any calendar year in which a  
taxable event occurred or a distribution  
was made on account of hardship.  
The QDOT election under section  
2056A(d) has been made for the  
trust by the executor of the estate  
on the decedent's estate tax return.  
The requirements of all applicable  
regulations have been met.  
The trustee must also file Form  
706-QDT if the surviving spouse is the  
beneficiary of more than one QDOT,  
However, if you are filing the return  
because of the death of the surviving  
Aug 11, 2021  
Cat. No. 12384F  
 
spouse, you must file it within 9 months  
following the date of death. You must  
also report on that return all reportable  
distributions made during the calendar  
year in which the surviving spouse died.  
This rule may result in a return being  
due before April 15. For example, if the  
surviving spouse died on June 14,  
2020, Form 706-QDT would be due  
March 14, 2021, and must include all  
reportable distributions made during  
2020.  
filed for the trust. You do not need to  
attach a copy of the trust to any  
Paying the Tax  
Generally, the QDOT estate tax is due  
by April 15 of the year following the  
calendar year in which taxable  
subsequent filings of Form 706-QDT.  
If you are filing the return due to the  
death of the surviving spouse, attach a  
copy of the death certificate.  
distributions were made. However, if the  
surviving spouse died during the year or  
if the trust ceased to qualify as a QDOT  
during the year, the tax on those events  
and on any taxable distributions  
Penalties  
Section 6651 provides penalties for both  
late filing and for late payment unless  
there is reasonable cause for the delay.  
The law also provides penalties for  
occurring during that calendar year is  
due within 9 months following the date  
of death or the failure to qualify.  
If the trust ceases to qualify as a  
QDOT, you must file Form 706-QDT  
within 9 months of the date on which the  
trust ceased to qualify. You must  
include on that return any reportable  
distributions made during the calendar  
year of the failure to qualify.  
willful attempts to evade payment of tax.  
If the QDOT qualifies, you may elect  
under section 6166 to pay the tax in  
installments. You may make either a  
protective or final election by checking  
“Yes” on line 3 of Part II—Elections by  
the Trustee/Designated Filer, and  
attaching the required statements. See  
the instructions under Line 3.  
Section 6662 provides penalties for  
underpayment of estate taxes which  
exceed $5,000 that are attributable to  
valuation understatements. See  
sections 6662(g) and (h) for more  
details.  
Return preparer. Estate tax return  
preparers who prepare any return or  
claim for refund that reflects an  
Use Form 4768, Application for  
Extension of Time To File a Return  
and/or Pay U.S. Estate (and  
Installment payments, later, for  
additional information.  
Generation-Skipping Transfer) Taxes, to  
apply for an automatic 6-month  
extension of time to file Form 706-QDT.  
Check the “Form 706-QDT” box in Part  
II of Form 4768.  
Make the check payable to “United  
States Treasury.” Write the surviving  
spouse's social security number (SSN)  
(or individual taxpayer identification  
number (ITIN), if applicable) and “Form  
706-QDT” on the check to assist us in  
posting it to the proper account.  
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 earned (or to be  
earned) for the preparation of each such  
return. 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  
75% of the income derived (or income  
to be derived), whichever is greater, for  
the preparation of each such return. See  
section 6694(a) and 6694(b), the related  
regulations, and Announcement  
Note. An extension of time to file does  
not extend the time to pay the tax.  
Signature(s)  
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 services.  
If the trustee is filing the return and there  
is more than one trustee listed, all listed  
trustees must verify the return. All  
trustees are responsible for the return  
as filed and are liable for penalties  
provided for erroneous or false returns.  
The PDS can tell you how to get  
written proof of the mailing date.  
2009-15, 2009-11 I.R.B. 687, available  
at Announcement 2009-15, for more  
information.  
The trustee/designated filer who files  
the return must, in every case, sign the  
declaration on page 1 under penalties of  
perjury. The trustee/designated filer  
may use Form 2848, Power of Attorney  
and Declaration of Representative, to  
authorize another person to act for him  
or her before the IRS.  
For the IRS mailing address to use if  
you’re using a PDS, go to IRS.gov/  
Security for Payment of  
the Tax  
Assets in Excess of $2 Million  
If the estate tax value of the assets  
passing to the QDOT exceeds $2  
million (determined without regard to  
any indebtedness), the trust instrument  
must require that the trust meet at least  
one of the following conditions at all  
times during the term of the QDOT.  
PDSs can’t deliver items to P.O.  
boxes. You must use the U.S  
!
CAUTION  
Postal Service to mail any item  
to an IRS P.O. box address.  
Paid Preparer Use Only  
Where To File  
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.  
File Form 706-QDT at the following  
address.  
Department of the Treasury  
Internal Revenue Service Center  
Kansas City, MO 64999  
A paid preparer cannot use a social  
security number in the Paid Preparer  
Use Only box. The paid preparer must  
use their valid preparer tax identification  
number (PTIN). In addition to signing  
and completing the required  
At least one U.S. trustee must be a  
bank as defined in section 581.  
The U.S. trustee must furnish a  
bond in favor of the IRS in an  
amount equal to 65% of the fair  
market value (FMV) of the trust  
assets.  
If using a PDS, use this address.  
Internal Revenue Submission  
Processing Center  
information, the paid preparer must give  
a copy of the completed return to the  
trustee/designated filer.  
333 W. Pershing  
The U.S. trustee must furnish an  
irrevocable letter of credit issued by  
a bank in an amount equal to 65%  
of the FMV of the trust assets.  
Kansas City, MO 64108  
Supplemental Documents  
You must attach a copy of the trust  
instrument to the first Form 706-QDT  
Instructions for Form 706-QDT (Rev. 9-2021)  
-2-  
 
The trust instrument may also meet  
whether made by the executor or by a  
Designated Filer Filing the  
Return  
this requirement by specific reference to trustee, may be canceled by attaching  
the applicable paragraph of Regulations such a statement to Form 706-QDT.  
The designated filer must receive a  
completed Schedule B from the trustee  
of every QDOT that has had a  
reportable event or a hardship  
distribution during the tax year. The  
designated filer would then summarize  
these on Schedule A.  
section 20.2056A-2(d).  
Filing a Bond or Letter of Credit  
The QDOT may alternate between  
If the bond or letter of credit  
any of these arrangements provided  
arrangement is selected, the executor  
that one of the arrangements is  
must have filed the bond or letter of  
operative at any given time. The QDOT  
credit with the Form 706 or 706-NA on  
may give the trustee the discretion to  
which the QDOT election is made.  
use any one of the security  
Complete the return in the following  
order.  
The U.S. trustee must provide a  
written statement with the bond or letter  
of credit listing the assets that will fund  
the QDOT, the values of the assets, and  
whether any exclusion for a personal  
residence is being claimed.  
arrangements, or may limit the trustee to  
using only one or two of the  
arrangements.  
1. Part I—General Information on  
page 1.  
Assets of $2 Million or Less  
2. Part II—Elections by the Trustee/  
Designated Filer on page 1.  
If the estate tax value of the assets  
passing to the QDOT is $2 million or  
less (determined without regard to any  
indebtedness), the trust instrument must  
require that the trust meet at least one of  
the following conditions at all times  
during the term of the QDOT.  
Additional Information  
For more information, including  
3. Schedule A.  
4. Part III—Tax Computation on  
page 1.  
additional requirements for a bond and  
letter of credit, details on the exclusion  
of a personal residence, rules on the  
disallowance of the marital deduction for  
substantial undervaluation of QDOT  
property, rules regarding foreign real  
property, and certain annual reporting  
requirements (concerning ownership of  
foreign real property, cessation of use of  
a personal residence, and look-through  
rules applied to the ownership of foreign  
real property), see Regulations section  
20.2056A-2(d).  
Attach each Schedule B to the return  
when you file it.  
If there is not enough space on a  
schedule to list all the items, attach an  
additional sheet of the same size to the  
back of the schedule.  
No more than 35% of the FMV of  
trust assets, determined annually on  
the last day of the tax year of the  
trust, will consist of real property  
located outside the United States.  
The trust will meet the requirements  
described above for QDOTs with  
assets in excess of $2 million.  
Rounding Off to Whole Dollars  
You may round off cents to whole  
dollars on the return and schedules. If  
you do round to whole dollars, you must  
round all amounts. To round, drop  
amounts under 50 cents and increase  
amounts from 50 cents to 99 cents to  
the next dollar. For example, $1.39  
becomes $1 and $2.50 becomes $3.  
For this purpose, if more than one  
QDOT is established for the benefit of  
the surviving spouse, the value of all of  
the QDOTs is aggregated in  
How To Complete Form  
706-QDT  
determining whether the $2 million  
threshold is exceeded.  
Trustee Filing the Return  
Personal Residence  
If the trustee is filing the complete  
return, prepare it in the following order.  
For the purpose of (1) figuring the $2  
million threshold, and (2) determining  
the amount of any bond or letter of  
credit, the executor of the decedent's  
estate may elect to exclude up to  
$600,000 in the value of real property  
that meets the following requirements.  
Specific Instructions  
1. Part I—General Information on  
page 1.  
Part I—General  
2. Part II—Elections by the Trustee/  
Designated Filer on page 1.  
Information  
If trustee files entire return—Lines  
2a, 2b, and 2c. If the trustee is filing  
the entire return, enter the trustee's  
information on lines 2a, 2b, and 2c.  
3. All of Schedule B (but only lines 1a  
and 1b of Part I).  
It is used by or held for the use of  
the surviving spouse as a personal  
residence.  
4. Schedule A.  
It is owned directly by the QDOT.  
It passed or was treated as passing  
to the QDOT under the rules for the  
marital deduction when the  
Line 2b. If the trustee/designated filer  
is an individual, enter his or her SSN.  
Otherwise, enter the employer  
identification number (EIN) of the  
trustee/designated filer.  
5. Part III—Tax Computation on  
page 1.  
Enter only the totals from Parts II  
through VI of Schedule B in the  
corresponding “Total” lines of  
Schedule A.  
surviving spouse is not a U.S.  
citizen (section 2056(d)(2)(B)).  
Line 2c. Enter the address at which  
The $600,000 may include the value  
you wish to receive correspondence  
of any related furnishings.  
Trustee Completing Schedule B from the IRS regarding this return. This  
must be an address for the designated  
Only  
Either election may have been made  
by the executor on the estate tax return  
for the decedent's estate. The election  
to exclude the personal residence  
amount from the amount of the bond or  
letter of credit may also be made  
filer, or if the trustee is filing the return,  
If a designated filer will file the return,  
one of the individual trustees who is a  
the trustee must complete all applicable  
U.S. citizen or a trustee that is a  
parts of Schedule B for his or her  
domestic corporation.  
respective trust and provide it to the  
Line 3b. Enter the taxpayer  
identification number (TIN) of the  
surviving spouse. The TIN is the SSN or  
ITIN.  
designated filer at least 60 days before  
the due date for filing Form 706-QDT.  
prospectively by the U.S. trustee by  
attaching a statement to Form 706-QDT  
claiming the exclusion. This election,  
Instructions for Form 706-QDT (Rev. 9-2021)  
-3-  
2. Any property not distributed, sold,  
exchanged, or otherwise disposed  
of within the 6-month period is  
valued on the date 6 months after  
the date of the surviving spouse's  
death.  
For definitions and additional  
information, see section 2032A and the  
related regulations. Also see Part  
3—Elections by the Executor and the  
Instructions for Schedule A-1, in the  
Instructions for Form 706.  
Line 3. Installment payments. If the  
gross estate includes an interest in a  
closely held business, you may be able  
to elect to pay part of the estate tax in  
installments under section 6166.  
The maximum amount that can be  
paid in installments is that part of the  
estate tax that is attributable to the  
closely held business. See Determine  
how much of the estate tax may be paid  
in installments under section 6166  
under Line 3. Section 6166 Installment  
Payments in the separate Instructions  
for Form 706. In general, that amount is  
the amount of tax that bears the same  
ratio to the total estate tax that the value  
of the closely held business included in  
the gross estate bears to the adjusted  
gross estate.  
If you check this line to make a  
protective election, you should attach a  
notice of protective election as  
described in Regulations section  
20.6166-1(d).  
If you check this line to make a final  
election, you should attach the notice of  
election described in Regulations  
section 20.6166-1(b).  
In computing the adjusted gross  
estate under section 6166(b)(6) for  
purposes of determining whether an  
election may be made under section  
6166, the net amount of any real estate  
in a closely held business must be used.  
For definitions and additional  
information, see section 6166 and the  
related regulations. Also see the Form  
706 instructions for Part 3—Elections by  
the Executor and Line 3. Section 6166  
Installment Payments for a worksheet  
on how to calculate the amount of tax  
which may be paid in installments under  
section 6166.  
Line 4a. Enter the name of the  
decedent on whose estate tax return the  
QDOT election was made.  
Line 4b. Enter the SSN of the decedent  
or, if applicable, the number previously  
assigned to the decedent's estate by the  
service center.  
3. Any property that is “affected by  
mere lapse of time” is valued as of  
the date of the surviving spouse's  
death. However, you may change  
the date of death value to account  
for any change in value that is not  
due to “mere lapse of time” on the  
date of its distribution, sale,  
Part II—Elections by the  
Trustee/Designated Filer  
If this return is being filed because of the  
death of the surviving spouse, and any  
property remaining in the QDOT at that  
time is includible in the estate of the  
surviving spouse (or would be includible  
if the surviving spouse had been a U.S.  
citizen or resident), then the trustee/  
designated filer may elect to apply  
certain estate tax benefits on this return,  
provided the estate of the surviving  
spouse would be eligible for these  
benefits.  
exchange, or other disposition.  
For additional details, see Part  
3—Elections by the Executor in the  
separate Instructions for Form 706.  
Line 2. Special use valuation of sec-  
tion 2032A. Under section 2032A, you  
may elect to value certain farm and  
closely held business real property at its  
farm or business use value rather than  
its FMV. You may elect both special use  
valuation and alternate valuation. To  
elect this valuation, you must check  
“Yes” on line 2 and complete and attach  
Schedule A-1 of Form 706 and its  
Line 1. Alternate valuation. Unless  
you elect at the time you file this return  
to adopt alternate valuation under  
section 2032, then you must value all  
property of all trusts listed on  
Schedule A, Part III, on the date of the  
surviving spouse's death.  
required additional statements.  
You must file Schedule A-1 of  
Note. You may not elect alternate  
valuation for any property reported on  
Schedule A, Parts I and II.  
You may not elect alternate valuation  
unless the election will decrease both  
the value of the Schedule A, Part III  
property, and the net tax due on the  
return.  
A designated filer filing for multiple  
trusts must make this election for all of  
the Schedule A, Part III property in all of  
the trusts, taken as a whole. The  
election cannot be made unless the  
requirements are met for all of the  
property.  
You elect alternate valuation by  
checking “Yes” on line 1 and filing Form  
706-QDT. Once made, the election is  
irrevocable.  
Form 706 and its required  
!
CAUTION  
attachments with Form  
706-QDT for this election to be valid.  
The total value of the property valued  
under section 2032A may not be  
decreased from FMV by more than  
$1,190,000 for decedents dying in  
2021. For later years, the IRS will  
publish the amount in an annual  
revenue procedure.  
Real property may qualify for the  
section 2032A election if:  
1. The real property is located in the  
United States,  
2. The real property is used for  
farming or in a trade or business,  
3. The real property was acquired  
from or passed from the surviving  
spouse to a qualified heir of the  
surviving spouse,  
Bond or lien. The IRS may require that  
an estate furnish a surety bond when  
granting the installment payment  
If you elect alternate valuation, you  
must value all of the property to which  
the election applies as of the applicable  
date as follows.  
election. In the alternative, the executor  
may consent to elect the special lien  
provisions of section 6324A in lieu of the  
bond. The IRS will contact you  
4. The real property was owned and  
used in a qualified manner by the  
surviving spouse or a member of  
the surviving spouse's family for 5  
of the 8 years before the surviving  
spouse's death, and  
1. Any property distributed, sold,  
exchanged, or otherwise disposed  
of by any method within 6 months  
after the surviving spouse's death is  
valued on the date of distribution,  
sale, exchange, or other  
regarding the specifics of furnishing the  
bond or electing the special lien. The  
IRS will make this determination on a  
case-by-case basis, and you may be  
asked to provide additional information.  
5. The qualified property is the  
percentage of the surviving  
spouse's gross estate specified in  
section 2032A.  
disposition, whichever occurs first.  
Value the property on the date title  
passed as a result of the sale,  
exchange, or other disposition.  
If you elect the lien provisions,  
section 6324A requires that the lien be  
placed on property having a value equal  
Instructions for Form 706-QDT (Rev. 9-2021)  
-4-  
 
to the total deferred tax plus 4 years of  
interest. The property must be expected  
to survive the deferral period, and does  
not necessarily have to be property of  
the estate. In addition, all of the persons  
having an interest in the designated  
property must consent to the creation of  
this lien on the property pledged.  
Line 4. Spousal election. If the  
surviving spouse has become a U.S.  
citizen, the QDOT tax will not apply to  
any distributions made after the  
surviving spouse became a citizen as  
long as either:  
report the location and, if the parcel is  
improved, describe the improvements.  
For city or town property, report the  
street number, ward, subdivision, block  
and lot, etc. For rural property, report  
the township, range, landmarks, etc.  
Line 1b. All trusts filing Form 706-QDT  
must have an EIN. If you don’t have an  
EIN, you may apply for one online by  
visiting the IRS website at IRS.gov/EIN.  
You may also apply for an EIN by faxing  
or mailing Form SS-4 to the IRS. If the  
EIN has not been received by the filing  
time for Form 706-QDT, write “Applied  
for” on line 1b.  
Line 2a. You must enter on this line  
either the name of an individual trustee  
who is a U.S. citizen or a trustee that is  
a domestic corporation. If there is more  
than one trustee, enter the one to be  
contacted by the IRS. List the names of  
all additional trustees on a sheet of  
paper attached to this return. Include  
the SSN or EIN of all U.S. citizens or  
domestic corporations.  
Stocks. For stocks, give:  
Number of shares;  
Whether common or preferred;  
Issue;  
Par value, where needed for  
valuation;  
Price per share;  
Exact name of corporation;  
Principal exchange upon which  
sold, if listed on an exchange; and  
CUSIP number (defined below).  
The surviving spouse had been a  
U.S. resident at all times after the  
death of the decedent and before  
becoming a citizen, or  
If the stock is unlisted, show the  
No QDOT tax had been imposed on  
any distributions prior to the  
surviving spouse becoming a  
citizen.  
company's principal business office.  
Line 2b. Enter the SSN or EIN, as  
applicable, of the trustee listed on  
line 2a.  
Bonds. For bonds, give:  
Quantity and denomination;  
Name of obligor;  
You should file a final Form 706-QDT  
Date of maturity;  
Part II—Taxable Distributions  
From Prior Years  
Enter here the total of all taxable  
distributions that were or should have  
been reported on previously filed Forms  
706-QDT.  
to notify the IRS that the QDOT tax no  
longer applies for this reason.  
Interest rate;  
Interest due date;  
If the surviving spouse does not meet  
either of the conditions above, the  
QDOT tax will still not apply to  
distributions after he or she becomes a  
citizen if the surviving spouse elects  
both:  
Principal exchange, if listed on an  
exchange; and  
CUSIP number.  
If the bond is unlisted, show the  
Part III—Current Taxable  
Distributions  
company's principal business office.  
To treat any distributions that were  
subject to QDOT tax as taxable gifts  
for purposes of determining the  
estate or gift tax under sections  
2001 and 2501, respectively, for the  
year the surviving spouse became a  
citizen and all subsequent years;  
and  
CUSIP number. 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 the CUSIP number is not  
printed on the certificate, it may be  
obtained through the company's  
transfer agent.  
You must report on Part III the total  
amount of corpus distributed during the  
calendar year or other period covered  
by this return and before the date of  
death of the surviving spouse. Include  
as a distribution any QDOT estate tax  
paid during the calendar year out of the  
QDOT. Include all distributions even if  
the hardship exemption is being  
claimed.  
To treat any of the decedent's  
unified credit (applicable credit  
amount) that was used to reduce  
the QDOT tax on taxable  
distributions as use of the surviving  
spouse's own unified credit for  
purposes of determining the  
spouse's available unified credit  
under section 2505 for the year he  
or she became a citizen and for all  
subsequent years.  
Also, include as distributions in this  
part any reportable payments to the  
surviving spouse from nonassignable  
annuities and other arrangements when  
the executor has filed with the estate tax  
return for the decedent's estate an  
Other personal property. Any  
personal property distributed must be  
described in enough detail that its value  
can be ascertained by the IRS.  
Column C. Value. The value of a  
distribution is its FMV on the date of  
distribution. 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  
agreement to pay section 2056A estate  
tax on such distributions. For details,  
see Regulations section 20.2056A-4(c).  
Column A. Date of distribution. The  
date of distribution is the date on which  
the title to the distributed property  
passed from the trustee to the surviving  
spouse.  
To make these elections, check  
“Yes” on line 4 and attach notification of  
the election to this return.  
Schedule B  
Part I—General Information  
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 relevant.  
If the trustee is filing the entire return,  
the trustee needs to complete only lines  
1a and 1b of this part of Schedule B (but  
all of Parts II through VI). When  
Column B. Description. Include in the  
description the name of the individual(s)  
to whom the distribution was made.  
completing Part I on page 1, enter the  
remaining trustee's information on lines  
2a, 2b, and 2c.  
Real estate. Describe the real  
estate in enough detail so that the IRS  
can easily locate it for inspection and  
valuation. For each parcel of real estate,  
Stocks and bonds. The FMV of a  
stock or bond (whether listed or  
Instructions for Form 706-QDT (Rev. 9-2021)  
-5-  
     
unlisted) is the mean between the  
of the QDOT on the date of death.  
includible if the surviving spouse had  
been a U.S. citizen or resident).  
highest and lowest selling prices quoted Ordinary dividends declared to  
on the valuation date. If only the closing  
selling prices are available, then the  
FMV is the mean between the quoted  
closing selling price on the valuation  
date and on the trading day before the  
valuation date. If there were no sales on  
the valuation date, figure the FMV as  
follows.  
stockholders of record after the date of  
the surviving spouse's death are not  
property of the QDOT on the date of  
death. However, if you have elected  
alternate valuation on line 1 of Part II,  
page 1, and dividends are declared to  
stockholders of record after the date of  
the surviving spouse's death so that the  
shares of stock at the later valuation  
date do not reasonably represent the  
same property at the date of the  
Do not make an entry in Parts V and  
VI unless there is an entry in Part IV of  
Schedule B. Also, the sum of the total of  
the amounts entered in Parts V and VI  
cannot exceed the total of the amount  
entered in Part IV of Schedule B.  
For details on the marital and  
charitable deductions, see the  
instructions for Schedule M and  
Schedule O, in the Instructions for Form  
706, as applicable.  
1. Find the mean between the highest  
and lowest selling prices on the  
nearest trading day before and the  
nearest trading day after the  
valuation date. Both trading days  
must be reasonably close to the  
valuation date.  
surviving spouse's death, include those  
dividends (except dividends paid from  
earnings of the corporation after the  
date of the surviving spouse's death) in  
the alternate valuation.  
Schedule A  
When a designated filer is filing Form  
706-QDT for more than one trust, use  
Schedule A to summarize the  
2. Prorate the difference between the  
mean prices to the valuation date.  
If there is not enough space to list all  
of the property, attach additional sheets  
of the same size, using the same format  
as Part IV.  
Column A. Item no. Assign a separate  
item number to each separate type of  
property. For example, you can include  
under a single item number all stock of  
the same issuer and type, but must list  
separate types (for example, preferred  
and common) under separate item  
numbers.  
Column B. Description. See the  
instructions under Part III—Current  
Description, earlier.  
Column C. Alternate valuation date.  
If this return involves only one trust,  
enter the alternate valuation date only if  
you answered “Yes” to question 1 of  
Part II—Elections by the Trustee/  
Designated Filer.  
If the designated filer is filing this  
return for multiple trusts, the individual  
trustees will complete Part IV, but only  
the designated filer can elect alternate  
valuation. To allow the designated filer  
to make this decision, the trustee must  
provide on an attachment to Schedule B  
both the regular and the alternate value  
(and the alternate valuation date) for all  
assets, unless the designated filer has  
notified the trustee that this is not  
required.  
Schedule B amounts provided by the  
trustees. Under “EIN of QDOT” (that is,  
column A of Parts II, III, and IV), enter  
the EIN of the appropriate trust. If the  
trustee is filing the return, simply  
transfer the totals from Schedule B to  
the corresponding “Total” lines on  
Schedule A.  
3. Add or subtract (whichever  
applies).  
See the Instructions for Schedule B,  
in the Instructions for Form 706 for  
additional information on valuing stocks  
and bonds.  
Column D. Amount of hardship ex-  
emption claimed. Distributions to the  
surviving spouse on account of hardship  
are exempt from the QDOT tax. Enter in  
column D the amount of any distribution  
for which the hardship exemption is  
being claimed. Do not enter any amount  
here that has not been included in the  
amount listed in column C. Also, if the  
surviving spouse is the beneficiary of  
more than one QDOT, you may not  
claim the hardship exemption unless the  
decedent's executor selected a  
Part III—Tax Computation  
(Page 1 of Form 706-QDT)  
Line 7. Enter the amount of the taxable  
estate from one of the following as filed  
for the decedent's estate or as finally  
determined by the IRS.  
Part 2—Tax Computation, line 3 of  
Form 706 (for estates of decedents  
dying before January 1, 2005).  
Part 2—Tax Computation, line 3c of  
Form 706 (for estates of decedents  
dying on or after January 1, 2005).  
Part II—Tax Computation, line 1 of  
Form 706-NA.  
designated filer. See Designated Filer,  
earlier.  
Part IV—Taxable Property in  
Trust at Death of Surviving  
Spouse  
You must report in Part IV all property  
remaining in the QDOT on the date of  
death of the surviving spouse (or the  
date the trust failed to qualify as a  
QDOT, if applicable). This includes both  
corpus and undistributed income.  
Interest accrued to the date of the  
surviving spouse's death on bonds,  
notes, and other interest-bearing  
obligations is property of the QDOT on  
the date of death. Rent accrued to the  
date of the surviving spouse's death on  
leased real and personal property is  
property of the QDOT on the date of  
death.  
Lines 10 and 11. Using the same  
revision of Form 706 or Form 706-NA on  
which the executor filed the decedent's  
estate tax return, recompute the  
decedent's net estate tax by substituting  
the amounts on line 9 and line 8 of this  
Form 706-QDT for the decedent's  
taxable estate from one of the following.  
Part 2—Tax Computation, line 3 of  
Form 706 (for estates of decedents  
dying before January 1, 2005).  
Part 2—Tax Computation, line 3c of  
Form 706 (for estates of decedents  
dying on or after January 1, 2005).  
Part II—Tax Computation, line 1 of  
Form 706-NA.  
Column D. Value. See the instructions  
Parts V and VI—Marital and  
Charitable Deductions  
Marital and charitable deductions are  
allowable for any property that both  
remained in the QDOT on the date of  
Prior year versions of Forms 706 and  
706-NA can be obtained by calling  
800-TAX-FORM (800-829-3676) or by  
accessing the IRS website at  
Outstanding dividends that were  
declared to stockholders of record on or the surviving spouse's death and was  
before the date of the surviving  
includible in the gross estate of the  
surviving spouse (or would have been  
spouse's death are considered property  
Instructions for Form 706-QDT (Rev. 9-2021)  
-6-  
Note that as a result of the  
1. This return is being filed because of  
the death of the surviving spouse.  
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 ensure  
that you are complying with these laws  
and to allow us to figure and collect the  
right amount of tax.  
recomputation, some items other than  
the taxable estate might be different  
from what was on the decedent's actual  
estate tax return. If the decedent's  
estate did not fully use its unified credit,  
additional unified credit may be  
2. Any property remaining in the  
QDOT at that time is includible in  
the estate of the surviving spouse  
(or would be includible if the  
surviving spouse had been a U.S.  
citizen or resident).  
allowable in the recomputation.  
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  
If the decedent's estate claimed a  
credit for tax on prior transfers and the  
credit was limited by section 2013(c),  
the recomputed credit may be different  
than on the return as filed.  
3. The credit is allowable (or would be  
allowable if the surviving spouse  
had been a U.S. citizen or resident)  
to the estate of the surviving  
spouse with respect to the property  
referred to in (2), above.  
Also, if the decedent's estate claimed  
a credit for state death taxes (for  
decedents dying before January 1,  
2005) or a credit for foreign death taxes  
and the amount of the credit that could  
be claimed was limited by section  
4. The taxes were actually paid to a  
foreign jurisdiction.  
administration of any Internal Revenue  
law. Generally, tax returns and return  
information are confidential as required  
by section 6103.  
For details on claiming this credit,  
see the Instructions for Form 706. If you  
claim the foreign death tax credit, you  
must complete and attach Schedule P  
of Form 706.  
2011(b) (prior to its repeal on January 1,  
2005) or section 2014(b), respectively,  
the recomputed credit may be different.  
The time needed to complete and file  
this form will vary depending on  
individual circumstances. The estimated  
average time is:  
If the final determination of the tax  
due on the estate of the decedent has  
not been made at the time this return is  
filed, you must figure the tax on these  
lines using the highest rate of tax (see  
Table of Maximum Tax Rates below) in  
effect at the time of the decedent's  
death.  
Also, if there is more than one QDOT  
with respect to any decedent, you must  
figure the tax on lines 10 and 11 using  
the highest rate of tax (see Table of  
Maximum Tax Rates below) in effect at  
the time of the decedent's death unless  
all of the following conditions are met.  
Table of Maximum Tax Rates  
Recordkeeping. . . . .  
1 hr., 12 min.  
The  
maximum  
tax rate  
Learning about the  
law or the form. . . . .  
42 min.  
Preparing the  
form . . . . . . . . . . . . .  
If the decedent died . . . . is . . . . . .  
1 hr., 30 min.  
After December 31, 2004,  
but before January 1, 2006  
47%  
46%  
45%  
35%*  
40%  
Copying,  
assembling, and  
sending the form to  
the IRS . . . . . . . . . . .  
After December 31, 2005,  
but before January 1, 2007  
1 hr., 3 min.  
After December 31, 2006,  
but before January 1, 2010  
The decedent's executor has  
designated a single person to be  
responsible for filing Form 706-QDT  
for all of the trusts (designated filer).  
The designated filer is either an  
individual who is a U.S. citizen or is  
a domestic corporation.  
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  
through IRS.gov/FormComments. Or  
you can write to:  
After December 31, 2009,  
but before January 1, 2013  
After December 31, 2012  
* Special rules can apply for 2010. For more  
information, see Pub. 4895, Tax Treatment  
of Property Acquired From a Decedent  
Dying in 2010.  
The designated filer meets the  
requirements of all applicable  
regulations.  
Internal Revenue Service  
Tax Forms and Publications  
1111 Constitution Ave. NW,  
IR-6526  
Further, if the return is being filed  
because of the death of the surviving  
spouse, then in figuring line 10, any  
foreign death taxes paid by the estate of  
the surviving spouse may be used in  
determining the allowable credits in  
recomputing the decedent's estate tax,  
if all of the following conditions are met.  
Line 14. Make the check payable to  
“United States Treasury.” Please write  
the surviving spouse's SSN (or ITIN, if  
applicable) and “Form 706-QDT” on the  
check to assist us in posting it to the  
proper account.  
Washington, DC 20224  
Do not send the tax form to this  
address. Instead, see Where To File,  
earlier.  
Instructions for Form 706-QDT (Rev. 9-2021)  
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