Instructions for Form 706 (2015) Checklist
This checklist supports the filing process for the 2015 revision and applies to taxable estates of decedents dying after December 31, 2014, under federal estate tax law. It focuses on estate tax purposes, Generation-Skipping Transfer Taxes, and required schedule placement, not on income tax return concepts such as credits or withholding.
The estate tax return can also support a portability election for a deceased spouse when timely filed, even if the tax due after deductions is not expected to be owed. Use IRS forms and the
PDF file instructions in Adobe Acrobat to confirm the filing deadline, extension of time rules, and required attachments.
Ten-Step Checklist
Step 1: Confirm Whether Filing Is Required
Determine whether filing is required by comparing the gross estate, adjusted taxable gifts under gift tax rules, and the exemption amount for 2015 under federal tax law. If a portability election is intended for a surviving spouse, filing is usually required even if the estate falls below the threshold.
Verify the decedent was a United States citizen or domiciled resident at death, because that status controls the correct return and estate tax treatment. If the status is unclear, a tax professional should document domicile facts and maintain records aligned for enforcement and subsequent reporting.
Step 2: Confirm The Correct Return Type
Use the 2015 revision for citizen or resident decedents, and use the nonresident version when the decedent was neither a citizen nor domiciled in the United States. This classification relies on estate tax domicile concepts, not income tax residency labels, and it can affect available deductions and reporting scope.
If the estate involves foreign ties, confirm whether Form 706-NA is required and whether treaties affect what counts as the U.S. portion of the gross estate. A legal professional can help coordinate cross-border documentation, especially when real estate, securities, or trust interests create complex situs determinations.
Step 3: Establish Executor Authority And Core Intake
Collect identifying data for the decedent, including name, Social Security Number, date of death, domicile, and any facts supporting estate planning positions on the return. Confirm the executor has authority and retains the wills, court papers, and estate administration records needed to support signature and filing representations.
If multiple fiduciaries exist, confirm who signs and how responsibilities are shared under the complete form instructions, because signature mechanics are not merely a convenience. Keep a clear contact record and preserve key identifiers for later correspondence, including any follow-up notices from the Internal Revenue Service.
Step 4: Inventory Property And Map It To Schedules
Build an inventory of all property interests included in the gross estate, including real estate, financial accounts, business interests, and any basis of property acquired issues that may later affect consistent basis reporting. Organize records by schedule and keep valuation support ready, because itemized detail drives accuracy and reduces the risk of substantial penalties.
Capture documentation for ownership, beneficiary designations, trust interests, and any property transferred during life that could interact with estate tax computation rules. Maintain notes that tie each asset to a schedule and a value source, using statements, appraisals, and reliable market data.
Step 5: Decide On Valuation Method And Elections
Use the date-of-death value unless an alternate valuation election is properly made, because schedule columns and totals must remain consistent with the election reflected in the elections section. The election decision should be supported by calculations showing whether the election reduces both the gross estate value and overall tax liability.
When special valuation or elections are considered, document the facts and keep the supporting workpapers with the estate file for future examination. When uncertainty exists, a tax professional can assess whether election benefits outweigh complexity and whether disclosures are needed for later basis reporting.
Step 6: Complete Asset Schedules With Correct Placement
Report real estate on Schedule A, securities on the investment schedule, and cash and receivables on Schedule G-related areas only when required by the instructions for lifetime inclusions. Use Schedule D for life insurance details and keep the policy documentation available, as the inclusion of life insurance proceeds depends on ownership incidents and beneficiary rules.
Schedule E captures jointly held interests, while Schedule F captures miscellaneous items not classified elsewhere, and both require clear descriptions and valuation support. Ensure each
entry ties to a source document and reconcile totals to the gross estate summary lines before moving into deductions.
Step 7: Address Lifetime Transfers And Special Inclusions
Use Schedule G to report includible lifetime transfers under the applicable rules, and cross-check prior gift tax filings to confirm consistency with the taxable gifts history. Obtain prior filings where possible, including Form 8971 considerations if later consistent basis steps apply, and preserve copies with the estate records.
If transfers were made close to death, document the facts and determine whether inclusion applies, because Schedule G is not a generic listing of all gifts. A tax professional can review complex gifts, trust funding, and entity transfers to reduce classification errors and support defensible reporting.
Step 8: Claim Deductions Using Proper Deduction Schedules
Report funeral and administration costs on the applicable expense schedule, report debts and liens on the liabilities schedule, and avoid placing liabilities on the cash-and-receivables schedule. Keep supporting invoices and payment evidence, because deduction substantiation affects the taxable estate computation and can change the final tax due.
Apply the marital deduction on the spouse's schedule when the transfer qualifies, and document the surviving spouse's citizenship and trust structure when special requirements apply.
Charitable deductions should be reported on the charitable schedule with recipient details and valuation support consistent with estate planning documents.
Step 9: Compute Estate Tax And Any GST Tax
Compute estate tax using the 2015 rate mechanics under IRC section 2001 after totaling the gross estate and subtracting allowable deductions and credits. Confirm whether the generation-skipping transfer applies, because GST tax is reported only when direct skips exist and require completion of the GST schedule.
When GST applies, complete the GST schedule and related computations, and document any
GST exemption use and how it was determined under the instructions. If trustee-level reporting is involved elsewhere, note the interaction and retain supporting records for subsequent reporting.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 10: Assemble, Sign, And File With Extension Options
Assemble the package in the order required, attach the death certificate and supporting instruments, and review totals using the column heading structure to prevent missing schedules.
Use the PDF file instructions in Adobe Acrobat, and use the Find Help or a search button feature to locate “Where to file” and mailing rules.
File by the filing deadline and request an extension of time using Form 4768 when needed, while recognizing that payment rules can differ from filing extensions. Keep proof of mailing, retain a full copy, and consult a tax professional when unusual facts create a heightened risk of legal and financial obligations.
Final Notes and Practical Filing Considerations
After completing the checklist, review the return for internal consistency, ensuring schedule totals match summary lines and that asset classifications align with estate tax purposes. This final review helps reduce tax liability disputes and supports accurate enforcement review.
Use the current “Where to file” instructions, keep proof of mailing, and retain all workpapers for subsequent reporting purposes, including consistent basis tracking. When issues involve complex estate planning, consult a tax professional or legal professional for guidance.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
