Form 706 (2023): U.S Estate & GST Tax Return
Checklist
This checklist provides a corrected, year-specific guide for preparing a 2023 Federal Estate Tax
Return using IRS Form 706. It applies to decedents who were U.S. citizens or U.S. residents at death and covers estate tax, generation-skipping transfer reporting at death, and the mechanics of the portability election.
Form 706 is governed by federal law and administered by the Internal Revenue Service. It differs from income tax filings and focuses on estate valuation, tax liability, elections, and filing requirements related to the 2023 exemption amount.
Scope and Filing Context for 2023
For 2023 decedents, filing may be required when the gross estate plus adjusted taxable gifts exceeds the estate exemption. An estate tax return may also be filed solely to preserve a portability election for a surviving spouse, even when no tax is due.
The filing process relies on the date-of-death estate valuation unless a valid election applies.
Accurate preparation supports probate proceedings, reduces audit risk, and ensures compliance with federal estate tax return standards.
Ten-Step Checklist for Completing Form 706 (2023)
Step 1: Verify filing requirements and correct return type
Confirm whether the estate meets the 2023 filing threshold based on the exemption amount and adjusted taxable gifts. Verify that Form 706 applies rather than Form 706-NA based on the decedent’s citizenship and domicile.
This determination affects all schedules and elections. Using the wrong return can delay processing and invalidate elections.
Step 2: Confirm date of death and applicable tax year
Verify the decedent’s date of death falls within calendar year 2023. Use the Instructions for Form
706 that apply to 2023 estates.
Form 706 is a federal estate tax return, not an income tax filing. Do not apply income tax concepts to estate tax computation.
Step 3: Establish personal representative authority
Identify the personal representative or executor authorized under probate proceedings. Confirm authority using court documents or governing instruments.
If representation before the Internal Revenue Service is required, prepare authorization separately. Authority documentation must be retained with the estate records.
Step 4: Build a complete inventory of the decedent’s estate
Identify all includible property interests, including real estate, financial accounts, business interests, trust assets, and tangible property. Include probate and nonprobate transfers that affect the gross estate.
Life insurance proceeds may be includible depending on ownership and control. Each asset must be supported by ownership and beneficiary documentation.
Step 5: Value estate assets using fair market value
Report each asset at fair market value as of the date of death unless an election applies.
Maintain appraisal reports, statements, and valuation workpapers.
Estate valuation should be consistent across schedules. Unsupported values increase the risk of adjustment.
Step 6: Complete asset schedules accurately
Report assets on the correct schedules, including Schedule D for life insurance, Schedule E for jointly owned property, and Schedule G for specific lifetime transfers. Each schedule subtotal must reconcile to the gross estate total.
Attach required supporting forms where applicable. Avoid duplicate reporting across schedules.
Step 7: Apply marital deduction and portability election rules
Determine whether property passing to a surviving spouse qualifies for the marital deduction.
Report qualifying transfers on Schedule M in accordance with federal law.
If electing portability, complete the required section to transfer the unused exemption from the deceased spouse. Timely filing is essential to preserve the portability election.
Step 8: Address generation-skipping transfer reporting at death
Identify whether a generation-skipping transfer occurs at death under applicable GST rules.
Complete Schedule R-1 only when GST tax applies.
The concepts of GST exemption and allocation are separate from estate tax credits. Do not confuse Form 706 with other GST return types.
Step 9: Compute estate tax and review deductions
Calculate federal estate tax using the applicable credit amount and tax rate structure for 2023.
Confirm deductions, including administration expenses and debts, are allowable and documented.
State death taxes may affect deductions depending on the jurisdiction. Federal and state reporting should remain consistent.
- 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 the return
Assemble all schedules, attachments, and explanations into a complete filing package. Ensure the personal representative signs and dates the return.
File by the statutory filing deadline unless an extension is obtained. Retain proof of filing and copies of the final PDF format return.
Filing Considerations and Common Issues
Portability-only filings may qualify for simplified reporting, but asset identification remains required. Elections must be clearly made as instructed by the form.
Errors often arise from misclassifying lifetime gifts, incorrect use of the schedule, or incomplete valuation support. Careful review reduces the need for amended filings.
Final Review and Professional Guidance
Before submission, confirm totals reconcile, elections are transparent, and documentation supports all reported amounts. Ensure confidential information is complete and accurate.
Estate tax filings often involve complex federal law considerations. Consultation with a tax professional or estate attorney is appropriate when handling high-value estates, GST issues, or multi-state considerations such as Florida estate tax lien matters.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
