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Instructions for Form 706 (Rev. September 2022) For decedents dying after December 31, 2021 United States Estate (and Generation-Skipping Transfer) Tax Return Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue Code unless otherwise noted. Revisions of Form 706 For Decedents Dying Use Revision of Form 706 Dated After and Before December 31, 1998 January 1, 2001 July 1999 December 31, 2000 January 1, 2002 November 2001 December 31, 2001 January 1, 2003 August 2002 December 31, 2002 January 1, 2004 August 2003 December 31, 2003 January 1, 2005 August 2004 December 31, 2004 January 1, 2006 August 2005 December 31, 2005 January 1, 2007 October 2006 December 31, 2006 January 1, 2008 September 2007 December 31, 2007 January 1, 2009 August 2008 December 31, 2008 January 1, 2010 September 2009 December 31, 2009 January 1, 2011 July 2011 December 31, 2010 January 1, 2012 August 2011 December 31, 2011 January 1, 2013 August 2012 December 31, 2012 January 1, 2017 August 2013 December 31, 2016 January 1, 2018 August 2017 December 31, 2017 January 1, 2019 November 2018 December 31, 2018 August 2019 Future Developments For the latest information about developments related to Form 706 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form706. What's New Various dollar amounts and limitations in Form 706 are indexed for inflation. For decedents dying in 2022, the following amounts are applicable. • The basic exclusion amount is $12,060,000. • The ceiling on special-use valuation is $1,230,000. • The amount used in figuring the 2% portion of estate tax payable in installments is $1,640,000. • The basic credit amount is $4,769,800. The IRS will publish amounts for future years in annual revenue procedures. Estate tax closing letter fee. Effective October 28, 2021, a user fee of $67 was established for persons requesting the issuance of an estate tax closing letter (ETCL). See ETCL fee, later, for more information. Extension of time to elect portability. Effective July 8, 2022, Rev. Proc. 2022-32 provides a simplified method for certain estates to obtain an extension of time to file a return on or before the fifth anniversary of the decedent’s death to elect portability of the deceased spousal unused exclusion (DSUE) amount. See Extension to elect portability, later, for more information. Reminders Schedule R-1 is now a separate form. Beginning in 2019, Schedule R-1 will no longer be part of Form 706; instead, you will need to obtain a separate Schedule R-1 to complete and file with Form 706. Identifying exhibits. Copies of tax returns filed with Form 706 must be identified as exhibits to the Form 706. General Instructions Purpose of Form The executor of a decedent's estate uses Form 706 to figure the estate tax imposed by chapter 11 of the Internal Revenue Code. This tax is levied on the entire taxable estate and not just on the share received by a particular beneficiary. Form 706 is also used to figure the generation-skipping transfer (GST) tax imposed by chapter 13 on direct skips (transfers to skip persons of interests in property included in the decedent's gross estate). Which Estates Must File For decedents who died in 2022, Form 706 must be filed by the executor of the estate of every U.S. citizen or resident:

a. Whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $12,060,000; or

b. Whose executor elects to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse, regardless of the size of the decedent's gross estate. See the instructions for Part 6—Portability of Deceased Spousal Unused Exclusion, later, and sections 2010(c)(4) and (c)(5). To determine whether you must file a return for the estate under (a) above, add: 1. The adjusted taxable gifts (as defined in section 2503) made by the decedent after December 31, 1976; 2. The total specific exemption allowed under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) for gifts made by the decedent after September 8, 1976; and 3. The decedent's gross estate valued as of the date of death. Gross Estate The gross estate includes all property in which the decedent had an interest (including property outside the United States). It also includes: • Certain transfers made during the decedent's life without an adequate and full consideration in money or money's worth, • Annuities, • The includible portion of joint estates with right of survivorship (see the instructions for Schedule E), Feb 10, 2023 Cat. No. 16779E