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decedent’s death. You may request an Amending Form 706 Penalties extension of time for payment by filing If you find that you must change Late filing and late payment. Section Form 4768. You may also elect under something on a return that has already 6651 provides for penalties for both late section 6166 to pay in installments or been filed, you should: filing and for late payment unless there under section 6163 to postpone the • File another Form 706; is reasonable cause for the delay. The part of the tax attributable to a law also provides for penalties for willful • Enter “Supplemental Information” reversionary or remainder interest. attempts to evade payment of tax. The across the top of page 1 of the form; These elections are made by checking late filing penalty will not be imposed if and lines 3 and 4 (respectively) of Part the taxpayer can show that the failure 3—Elections by the Executor, and • Attach a copy of pages 1, 2, and 3 of to file a timely return is due to attaching the required statements. the original Form 706 that has already reasonable cause. been filed. If the tax paid with the return is Reasonable cause determinations. different from the balance due as If you have already been notified If you receive a notice about penalties figured on the return, explain the that the return has been selected for after you file Form 706, send an difference in an attached statement. If examination, you should provide the explanation and we will determine if you you have made prior payments to the additional information directly to the meet reasonable cause criteria. Do not IRS, attach a statement to Form 706 office conducting the examination. attach an explanation when you file including these facts. Form 706. Explanations attached to the return at the time of filing will not be Paying by check. Make the check Supplemental Documents considered. payable to the “United States Note. You must attach the death Treasury.” Please write the decedent’s Valuation understatement. Section certificate to the return. name, social security number (SSN), 6662 provides a 20% penalty for the and “Form 706” on the check to assist underpayment of estate tax that If the decedent was a citizen or us in posting it to the proper account. exceeds $5,000 when the under- resident of the United States and died payment is attributable to valuation testate, attach a certified copy of the understatements. A valuation Signature and Verification will to the return. If you cannot obtain a understatement occurs when the value certified copy, attach a copy of the will of property reported on Form 706 is If there is more than one and an explanation of why it is not 65% or less of the actual value of the executor, all listed executors are certified. Other supplemental property. responsible for the return. documents may be required as CAUTION ! However, it is sufficient for only one of explained below. Examples include This penalty increases to 40% if the co-executors to sign the return. Forms 712, Life Insurance Statement; there is a gross valuation under- 709, United States Gift (and statement. A gross valuation under- All executors are responsible for the Generation-Skipping Transfer) Tax statement occurs if any property on the return as filed and are liable for Return; and 706-CE, Certificate of return is valued at 40% or less of the penalties provided for erroneous or Payment of Foreign Death Tax; trust value determined to be correct. false returns. and power of appointment instruments; Penalties also apply to late filing, late If two or more persons are liable for and state certification of payment of payment, and underpayment of GST filing the return, they should all join death taxes. If you do not file these taxes. together in filing one complete return. documents with the return, the Return preparer. Estate tax return However, if they are unable to join in processing of the return will be delayed. preparers, who prepare any return or making one complete return, each is claim for refund which reflects an If the decedent was a U.S. citizen required to file a return disclosing all understatement of tax liability due to but not a resident of the United States, the information the person has about willful or reckless conduct, are subject you must attach the following the estate, including the name of every to a penalty of $5,000 or 50% of the documents to the return: person holding an interest in the income derived (or income to be 1. A copy of the inventory of property and a full description of the derived), whichever is greater, for the property and the schedule of liabilities, property. If the appointed, qualified, and preparation of each such return. See claims against the estate, and acting executor is unable to make a section 6694, the regulations expenses of administration filed with complete return, then every person thereunder, and Ann. 2009-15, 2009-11 the foreign court of probate jurisdiction, holding an interest in the property must, I.R.B. 687 (available at www.irs.gov/ certified by a proper official of the court; on notice from the IRS, make a return pub/irs-irbs/irb09-11.pdf) for more regarding that interest. 2. A copy of the return filed under information. the foreign inheritance, estate, legacy, The executor who files the return succession tax, or other death tax act, must, in every case, sign the Obtaining Forms and certified by a proper official of the declaration on page 1 under penalties foreign tax department, if the estate is Publications To File or Use of perjury. subject to such a foreign tax; and Internet. You can access the IRS Generally, anyone who is paid to 3. If the decedent died testate, a website 24 hours a day, 7 days a week prepare the return must sign the return certified copy of the will. at IRS.gov to: in the space provided and fill in the • Download forms, instructions, and “Paid Preparer Use Only” area. See publications; section 7701(a)(36)(B) for exceptions. Rounding Off to Whole • Order IRS products online; In addition to signing and completing Dollars • Research your tax questions online; the required information, the paid • Search publications online by topic or You may show the money items on the preparer must give a copy of the keyword; and return and accompanying schedules as completed return to the executor. • Sign up to receive local and national whole-dollar amounts. To do so, drop tax news by email. Note. A paid preparer may sign any amount less than 50 cents and original or amended returns by rubber increase any amount from 50 cents Other forms that may be required. stamp, mechanical device, or computer through 99 cents to the next higher • Form SS-5, Application for Social software program. dollar. Security Card. -3- General Instructions