Form 706 (2022) Estate Tax Return Checklist

Checklist

This checklist explains the filing process for an estate tax return using IRS Form 706 for a decedent who died in 2022 and was a U.S. citizen or U.S. resident. It reflects the estate tax framework in effect for 2022 under the Tax Cuts and Jobs Act, including the increased federal estate tax exemption and generation-skipping transfer rules.

Form 706 is used to determine the federal estate tax, GST tax on direct skips, and related elections that affect estate planning outcomes. It does not apply to income tax credits or deductions that belong on IRS Form 1040 or other income tax filings.

Determine whether Filing Form 706 is required or

advisable

An estate generally files Form 706 when the gross estate, adjusted taxable gifts reported on

Form 709, and other components needed exceed the applicable exemption amount for 2022.

Filing may also be appropriate when the estate intends to preserve portability for a deceased spouse by transferring the Deceased Spousal Unused Exclusion Amount.

Form 706 applies only to U.S. citizen or resident decedents, while nonresident noncitizens generally file Form 706-NA. Confirming the correct return type early helps avoid errors that increase tax liability or delay processing.

Confirm filing deadline and extension options

The estate tax return is due nine months after the month of death, rather than the calendar year.

Timely filing is critical because elections related to estate tax, GST exemption, and portability are lost if deadlines are missed.

When additional time is required, Form 4768 may be used to request an extension of time to file. An extension does not eliminate tax due, so the estimated federal estate tax should still be evaluated and addressed.

Complete the main body of IRS Form 706 first.

The return begins with decedent and executor information, including domicile and identifying details that affect estate tax treatment. Supporting documents, such as the death certificate and proof of executor authority, should be ready before completing these sections.

The tax computation section applies the federal gift and estate tax rate to the taxable estate after allowable credits. Elections made here influence how the Internal Revenue Code applies to the estate plan and wealth transfer strategy.

Ten-step checklist for Form 706 (2022)

1. Step 1: Verify filing requirements and executor authority

   Confirm whether the estate meets the filing threshold based on gross estate value, adjusted taxable gifts, and required inclusions. Verify who is authorized to sign the return and ensure executor documentation is consistent across records.

2. Step 2: Identify property and select the valuation approach

   Build a complete inventory of property transferred at death, including real estate, financial accounts, business interests, and trust arrangements. Decide whether to use date-of-death valuation or an alternate valuation when permitted and beneficial.

3. Step 3: Gather schedules and supporting records

   Collect wills, trust agreements, account statements, prior IRS Form 709 filings, and documentation for debts and medical expenses. Prepare applicable schedules, including

   Schedule D, Schedule E, Schedule F, Schedule G, and Schedule R-1, based on the asset mix.

4. Step 4: Complete decedent details and required elections

   Enter identifying information and confirm citizenship or residency status for the correct estate tax return. Complete portability elections and other polls needed directly on Form 706 rather than on the asset schedules.

5. Step 5: Calculate and report the gross estate

   Report includible property on the appropriate schedules using fair market value, without netting debts at the asset level. Life insurance proceeds are reported on Schedule D only when inclusion rules tied to ownership or control are met.

6. Step 6: Apply the Marital Deduction correctly

   Use Schedule M to report qualifying transfers to surviving spouses, including QTIP trusts and other permitted trust structures. Confirm whether additional requirements apply when the surviving spouse is not a U.S. citizen.

7. Step 7: Report charitable and public transfers

   Use Schedule O for qualifying charitable transfers and public gifts that reduce the taxable estate. Confirm recipients meet estate tax requirements and that reported values align with the selected valuation date.

8. Step 8: Address GST tax and exemption allocation

   Report generation-skipping transfer items using Schedule R and Schedule R-1 when required.

   Document GST exemption allocation decisions for dynasty trusts, trust distributions, and trust terminations under section 2612.

9. Step 9: Compute estate tax liability

   Subtract allowable deductions from the gross estate to determine the taxable estate. Apply the credit tied to the federal estate tax exemption to determine whether net tax due exists.

• Full IRS transcript retrieval (Wage & Income + Account)
• Professional tax form review
• Preparation & filing support
• Tax relief options if you owe the IRS

10. Step 10: Review, sign, assemble, and file

    Reconcile totals across schedules and confirm consistency of values, elections, and supporting statements. Sign the return, assemble attachments in the required order, and file using the official instructions for 2022.

    Form-specific notes for 2022

    Portability is elected through IRS Form 706 and cannot be made through Schedule C or other asset schedules. Schedule J applies only to funeral and administration expenses for property subject to claims, not valuation elections or business property rules.

    Schedule O should list only recipients that qualify under estate tax charitable rules. GST reporting belongs in the GST schedules and should not be mixed with asset or deduction schedules.

    Notes and closing

    This checklist supports accurate preparation of a 2022 estate tax return but does not replace professional judgment on valuation, trust structures, or elections under the Internal Revenue

    Code. High-net-worth individuals, estates with complex trust arrangements, or estates involving life insurance trusts, retained annuity trusts, or Crummey trust structures often benefit from guidance from an estate attorney or tax professional.

    Estates should retain a complete signed copy of Form 706, schedules, and valuation support after filing, as review timelines may be extended under recent developments and administrative procedures such as Rev. Proc. 2022-32. Careful documentation helps support future

    correspondence with the Internal Revenue Service and protects long-term estate planning outcomes.

    If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.