Form 706 is a type of tax return imposed on estates that meet specific criteria. It should be filed by the executor of the residence whose gross estate and certain exemptions exceed $11,580,000 in 2020. The document helps to determine the estate tax according to Chapter 11 of the Internal Revenue Code.
The issue of filling out the blank only becomes relevant after the owner of the area dies. In this case, the executor of the area has nine months from the owner’s death, to file the template. In the case of deadline violations, the taxpayers will be subjected to penalties.
The key takeaways of the document are the following:
Although the template has to be filed within nine months from the owner’s passing, it can sometimes take time to determine if the blank is required or not. In this case, US taxpayers can ask for a six-month extension by filing the 4768 one. The extension should be filed prior to the template’s due date.