United States.

The United States means the 50 states and the District of Columbia.

Domicile.

For estate tax purposes, a person acquires domicile in a place by living there, for even a brief period of time, with no definite present intention of later moving. For this purpose, the United States includes only the states and the District of Columbia. See Regulations section 20.0-1 for more information.

Nonresident not a citizen (NRNC) of the United States.

For estate tax purposes, a decedent is an NRNC of the United States if the decedent is neither domiciled in nor a citizen of the United States at the time of death. A decedent who acquired U.S. citizenship solely by reason of being a citizen of a U.S. territory or by reason of birth or residence within a U.S. territory is not treated as a U.S. citizen.

Long-term U.S. resident.

A long-term U.S. resident is an individual (other than a U.S. citizen) who has been a lawful permanent resident of the United States (green card holder) for income tax purposes in at least 8 of the last 15 tax years ending with the tax year in which U.S. income tax residency is terminated. See section 877(e) for more information.

Executor.

An executor is the personal representative, executor, executrix, administrator, or administratrix of the deceased person's estate. If no executor is appointed, qualified, and acting in the United States, every person in actual or constructive possession of any of the decedent's property must file a return. If more than one person must file, it is preferable that they join in filing one complete return. Otherwise, each must file as complete a return as possible, including a full description of the property and each person's name who holds an interest in it.

Executors must provide documentation proving their status. Documentation will vary but may include a certified copy of the will or a court order designating the executor(s). A statement by the executor(s) attesting to their status is insufficient.

U.S. expatriate.

Special estate tax rules may apply to decedents who expatriated from the United States prior to death. For these purposes, both U.S. citizens who relinquished their citizenship and long-term residents who have surrendered their green card or taken a position under a tax treaty that they are solely a resident of the other country, are treated as expatriates.

For decedents who expatriated prior to June 17, 2008, and were still subject to the 10-year alternative tax regime of section 877(b) on the date of death, the rules in section 2107 apply to determine the value of the decedent’s U.S. taxable estate. For decedents who expatriated on or after June 17, 2008, and were “covered expatriates” on the date of death, as defined in section 877A(g)(1), the rules in section 2107 do not apply, but the rules of section 2801 may apply. So decedents who expatriated on or after June 17, 2008, are generally subject to U.S. estate tax as all other NRNC decedents, and the references to “U.S. expatriate” in these instructions refer only to decedents who expatriated prior to June 17, 2008. See the instructions for Question 6a and Question 6b, later. Also, see effective dates, later, 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 services.

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/PDSStreetAddresses.

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.

Reasonable-cause determinations.

If you receive a notice about penalties after you file Form 706-NA, send an explanation, and we will determine if you meet reasonable-cause criteria. Do not attach an explanation when you file Form 706-NA. Explanations attached to the return at the time of filing will not be considered.

Return preparer.

Estate tax return preparers who prepare any return or claim for refund that 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 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 earned (or income to be earned), whichever is greater, for the preparation of each such return. See section 6694(a) and 6694(b), the related regulations, and Announcement 2009-15, 2009-11 I.R.B. 687, available at Announcement 2009-15, for more information.

Line 2.

Enter the decedent's social security number (SSN), if applicable, or the decedent's individual taxpayer identification number (ITIN), but only if the decedent had previously used the ITIN to file other U.S. tax returns. If the decedent does not have an SSN or a previously used ITIN, the IRS will assign an Internal Revenue Service Number (IRSN) to the decedent. If the decedent has already been assigned an IRSN, please enter the number on line 2. If the decedent does not have an SSN, ITIN, or an IRSN, leave line 2 blank.

Authorization.

Completing the authorization permits the attorney, accountant, enrolled agent, or other representative indicated to represent the estate before the IRS and receive confidential tax information. It will not authorize the representative to enter into closing agreements for the estate.

If you intend for the representative to represent the estate before the IRS, the representative must complete and sign this authorization. If you would like to authorize your representative to perform other acts on behalf of the estate, you must file Form 2848, Power of Attorney and Declaration of Representative. Complete and attach Form 2848 if you would like to authorize:

If you wish only to authorize someone to inspect or receive confidential tax information verbally and/or in writing, complete and attach Form 8821, Tax Information Authorization. Individuals authorized by Form 8821 are not authorized to:

Question 6a.

If you answer “Yes,” please attach a statement listing:

Question 6b.

If you answered “Yes,” and the decedent lost U.S. citizenship or long-term resident status within 10 years of death and prior to June 17, 2008, but you maintain that avoiding U.S. taxes was not a principal purpose for the decedent's loss of citizenship or residency, attach documents to sustain your position. See Definitions, earlier.

Question 9.

A general power of appointment is any power of appointment exercisable in favor of the decedent, the decedent's estate, the decedent's creditors, or the creditors of the decedent's estate, and includes the right of a beneficiary to appropriate or consume the principal of a trust. For a complete definition, see section 2041(b).

Entire gross estate.

The entire gross estate is figured the same way for an NRNC decedent as for a U.S. citizen or resident. It consists of all property the decedent beneficially owned, wherever located, and includes the following property interests.

For additional information concerning joint tenancies, tenancies by the entirety, annuities, life insurance, transfers during life, and powers of appointment, see the Instructions for Form 706.

Enter on Schedule A all of the assets that meet both of the following tests.

Determining where assets are located.

Unless a treaty provides otherwise (see Death Tax Treaties, earlier), use the following rules to determine whether assets are located in the United States.

Property valuation date.

Generally, property must be valued as of the date of death. Columns (c) and (d) do not apply in this case, and you may use the space to expand descriptions from column (b).

However, you may elect to use the alternate valuation date. To make this election, check the “Yes” box at the beginning of Schedule A. If you do so, the election applies to all property, and you will need to complete each column in Schedule A. Under this election, any property distributed, sold, exchanged, or otherwise disposed of within 6 months after the decedent's death is valued as of the date of the disposition. Any property not disposed of during that period is valued as of the date 6 months after the decedent's death.

You may not elect alternate valuation unless the election will decrease both the value of the gross estate and the net estate tax due after application of all allowable credits.

Line 2.

The amount on line 2 is the total value of the assets included in the entire gross estate that were located outside the United States.

To document the line 2 amount, attach a certified copy of the foreign death tax return or, if none was filed, a certified copy of the estate inventory and the schedule of debts and charges that were filed with the foreign probate court or as part of the estate's administration proceedings. Supplement these documents with attachments if they do not set forth the entire gross estate outside the United States. If more proof is needed, you will be notified.

If you elected the alternate valuation date for property listed on Schedule A, use it also for the assets reported on line 2. Otherwise, value the amounts as of the date of death.

Line 4.

You may deduct the following items whether or not they were incurred or paid in the United States.

You may deduct only that part of a debt or mortgage that was contracted in good faith and for full value in money or money's worth. You may deduct mortgages only to the extent of the full value of the mortgaged property included in the total gross estate on line 3. Do not deduct tax on income received after death or property taxes accrued after death. See Line 7, later, for details on deducting death taxes.

On line 4, show the total of these deductible items. In general, the total is limited to the amount on line 3.

To document the line 4 amount, attach an itemized schedule. For each expense or claim, specify the nature and amount and give the creditor's name. Describe other deductions fully and identify any particular property to which they relate.

Line 6.

Use line 6 to enter the following deductions.

Line 7.

You may take a deduction on line 7 for death taxes (estate, inheritance, legacy, or succession taxes) you paid to any state or the District of Columbia on property listed in Schedule A. To calculate the deduction for state death taxes, use the formula below. Enter the result on line 7.

Generally, you must claim this deduction within 4 years of filing the return. However, see section 2058(b) for exceptions and periods of limitations.

For the deduction to be allowed, you must file a certificate signed by the appropriate official of the taxing state. The certificate should show:

If possible, attach the certificate to this return; otherwise, please file it as soon as possible.

If you later recover any of the state tax for which you claim this deduction, you must notify the IRS at the following address within 30 days of receiving any refund of state taxes.

Lines 4 and 5.

To determine the tentative tax on the amount on line 2 (to be entered on line 5) and the tentative tax on the amount on line 3 (to be entered on line 4), use Table A—Unified Rate Schedule in the version of the Instructions for Form 706 that corresponds to the decedent's date of death.

Line 7.

Enter the unified credit. The unified credit is allowed for the smaller of the line 6 amount or the maximum unified credit. In general, the maximum unified credit is $13,000.

For a citizen of a U.S. possession (see section 2209), the maximum unified credit is the greater of:

The numerator of the fraction is the part of the gross estate located in the United States (line 1 of Schedule B), and the denominator is the entire gross estate wherever located (line 3 of Schedule B).

If the unified credit is affected by a treaty, see section 2102(b)(3)(A).

Any amount previously allowed as a unified credit against the gift tax will reduce, dollar for dollar, the unified credit allowed the estate (section 2102(b)(3)(B)).

Line 9.

Use line 9 to enter the following credits.

Line 13.

If you answered “Yes” to question 11 of Part III, you must complete and attach Schedules R and/or R-1 from Form 706.

For the purposes of Form 706-NA, the GST tax is imposed only on transfers of interests in property that are part of the gross estate in the United States. Therefore, when completing Schedules R and/or R-1, you should enter only transfers of interests in property that you listed on Schedule A of Form 706-NA. Otherwise, complete Schedules R and/or R-1 according to their instructions and enter the total GST tax from Schedule R on line 13.

For details, see Regulations section 26.2663-2.

Line 15.

Attach an explanation if earlier payments were made to the IRS.

Line 16.

Pay the balance due within 9 months after the decedent's death unless an extension of time to pay was granted. Make the check or money order payable to “United States Treasury” for the face value in U.S. dollars.

Third-party designee.

If you want to allow the return preparer (listed on the bottom of page 1 of Form 706-NA) to discuss your Form 706-NA with the IRS, check the "Yes" box to the far right of your signature on page 1 of your return. If you check the "Yes" box, you are authorizing the IRS to call your return preparer to answer questions that may arise during the processing of your return. You are also authorizing the return preparer of your Form 706-NA to:

You are not authorizing your return preparer to receive any refund check, to bind you to anything (including any additional tax liability), or otherwise represent you before the IRS. If you want to expand the authorization of your return preparer, see Pub. 947, Practice Before the IRS and Power of Attorney. The authorization will automatically end 3 years from the date of filing Form 706-NA. If you wish to revoke the authorization before it ends, see Pub. 947.