What IRS Form 706 (2024) Is For

IRS Form 706 is the United States Estate (and Generation-Skipping Transfer) Tax Return filed by executors to report estate tax on the entire taxable estate of deceased U.S. citizens or residents (IRS Instructions for Form 706, 2024).

For decedents who died in 2024, Form 706 must be filed if the gross estate, plus adjusted taxable gifts and specific exemption, exceeds $13,610,000, or if the executor chooses to elect portability of the deceased spousal unused exclusion (DSUE) amount to a surviving spouse, regardless of estate size.

When You'd Use Form 706 for 2024 (Late or Amended Filing)

Executors may need to file Form 706 late if the original 9-month deadline was missed, if IRS notices request the return, or if additional assets were discovered that push the estate above the filing threshold.

Amended returns (“Supplemental Information”) are required when correcting previously filed returns, such as errors in valuations, missing schedules, or computational mistakes (IRS Instructions for Form 706, 2024). Refund opportunities are limited and tied to statutory time periods under IRC §6511.

Key Rules Specific to 2024

• Filing threshold: $13,610,000
  
  
• Basic credit amount: $5,389,800
  
  
• Special-use valuation ceiling: $1,390,000
  
  
• Annual gift tax exclusion: $18,000 per recipient
  
  
• Portability election: Allowed if timely filed, or within five years of death under Rev. Proc. 2022-32 for estates not otherwise required to file
  
  

Step-by-Step (High Level)

• Gather documentation: Death certificate, certified will, Forms 709 (gift tax returns), Forms 712 (life insurance), appraisals, and IRS transcripts using Form 4506-T
  
  
• Use correct form year: Complete the 2024 revision of Form 706, including pages 1–4 and all required schedules (A through R-1)
  
  
• Attach required schedules: Provide all supporting property schedules and documentation such as appraisals, wills, and trust instruments
  
  
• Prepare mailing package: For amendments, mark “Supplemental Information” on page 1, attach explanation of changes, and include copies of pages 1–4 from the original return. Mail to:
  Internal Revenue Service Center,
  Attn: E&G, Stop 824G,
  7940 Kentucky Drive,
  Florence, KY 41042-2915
  
  
• Retain complete copies: Keep filed returns, appraisals, and IRS correspondence for audit protection and beneficiary recordkeeping
  
  

Common Mistakes and How to Avoid Them

• Missing portability elections: File even for estates under the threshold if a surviving spouse exists; use Rev. Proc. 2022-32 relief for late portability elections
  
  
• Incomplete asset valuations: Obtain professional appraisals; penalties of 20%–40% apply to valuation understatements under IRC §6662
  
  
• Failing to reconcile lifetime gifts: Attach all Forms 709 and reconcile taxable gifts in estate calculations
  
  
• Missing schedules and documents: Always include death certificate, certified will, Form 712 for life insurance, and state death tax certifications
  
  
• Computation errors: Use IRS worksheets for tentative tax and credits; math errors trigger notices and penalties
  
  
• Poor recordkeeping: Maintain detailed records for basis step-up, asset valuations, and executor authority
  
  

What Happens After You File

The IRS reviews estate tax returns over several months. During processing, you may receive notices for mathematical corrections, requests for more documentation, or audit selection.

If tax is owed, you may:

• Request an installment agreement using Form 9465
  
  
• Elect section 6166 installment payments for closely-held business interests
  
  

If the IRS proposes changes, you have appeal rights through the Independent Office of Appeals.

Estate Tax Closing Letters (ETCL) must be requested through Pay.gov (fee: $67) at least nine months after filing. Account transcripts via Form 4506-T may substitute in some estate administrations.

FAQs

Penalties for Late Filing

Late filing penalties are 5% of unpaid tax per month (up to 25%), plus late payment penalties of 0.5% per month. Interest accrues daily. Penalties may be waived for reasonable cause (IRS Instructions for Form 706, 2024).

Late Portability Elections

Estates not otherwise required to file may elect portability up to five years after death under Rev. Proc. 2022-32 by marking the return accordingly at the top of page 1.

Transcripts Before Amending

Account transcripts are not required but are recommended to confirm IRS records. Request using Form 4506-T or through professional transcript systems.

Refund Claim Deadlines

Claims must be filed within three years of the return due date or two years of payment, whichever is later (IRC §6511).

State Filing Requirements

Some states require amended estate tax returns when federal amendments are made. Requirements vary—check your state’s rules.

Over-Threshold Filings Later Found to Be Under

Once filed, Form 706 cannot be withdrawn. If no tax is due and portability was claimed, the return is still valid and processed normally.

Responding to IRS Notices

If you receive a notice, reply by the stated deadline with requested documents. Appeals are available, and the Taxpayer Advocate Service can help in complex cases.

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