Form 706-GS(D) (2019): GST Distribution Checklist
This checklist is a practical reference for preparing Form 706-GS(D) (Rev. June 2019) to report and pay generation-skipping transfer tax on taxable distributions received during calendar year
2019. It is intended for the skip person, distributor, or an authorized representative filing on the distributee’s behalf.
This checklist focuses on requirements specific to Form 706-GS(D) and related generation-skipping transfer tax return requirements, and should be used alongside the official
IRS instructions. It is not a substitute for those instructions or for advice from tax professionals when a filing involves regulatory complexity.
Ten-Step Filing Checklist for Form 706-GS(D) (2019)
Step 1: Confirm This Is the Correct Return
Confirm that the recipient qualifies as a skip person distributee who received one or more taxable distributions from a trust during 2019. Verify that the trustee issued Form 706-GS(D-1)
for the distribution and that at least one distribution shows an inclusion ratio greater than zero.
Step 2: Confirm Who Files and Who Signs
Confirm that the distributee, not the trustee, is the filer for Form 706-GS(D), since the trustee’s role is limited to providing Form 706-GS(D-1) reporting. Ensure the return will be signed by the distributee or an authorized representative who has legal authority to file on the distributee’s behalf.
Step 3: Verify the Calendar-Year Reporting Period
Confirm that the distributions being reported were received between January 1 and December
31, 2019. Ensure the reporting is not based on the trust’s fiscal year, since Form 706-GS(D)
follows a calendar-year rule regardless of trust arrangements or trust structures.
Step 4: Gather All Forms 706-GS(D-1) and Related Records
Collect every Form 706-GS(D-1) received for 2019 and organize them by trust, especially when multiple trusts made distributions. Retain supporting records that describe the trust distribution, the property transferred, the distribution date, and the fair market value at the time of transfer.
Step 5: Determine Whether Filing Is Required Using Inclusion Ratios
Review each Form 706-GS(D-1) and confirm which distributions have an inclusion ratio greater than zero. If the inclusion ratio is zero for all reported distributions, filing the tax return is generally not required, and those distributions are typically not included in income.
Step 6: Complete Part I — General Information
Enter the skip person distributee’s name and identifying number, using an SSN for an individual or an EIN for a trust distributee. Provide a current mailing address so IRS correspondence can be routed correctly, and include authorized representative information only when someone is filing on the distributee’s behalf.
Step 7: Complete Part II — Distributions
Use Form 706-GS(D-1) to populate Part II, including the trust EIN, the trustee’s item number, and the tentative transfer amount for each taxable distribution. If additional space is needed, attach continuation sheets in the same format and ensure totals roll up correctly.
Step 8: Attach Required Trustee Forms and Explanations
Attach a copy of each Form 706-GS(D-1) that supports the distributions listed on the return, since these attachments are required for proper processing. If the trustee’s figures are incomplete or disputed, attach a statement explaining the correct amounts, the method used, and the reason the figures differ.
Step 9: Complete Part III — Tax Computation and Payments
Compute any adjusted allowable expenses that relate to determining, collecting, or refunding
GST tax, and apply proration when multiple inclusion ratios apply. Apply the maximum federal estate tax rate shown in the 2019 instructions, which is 40 percent for post-2012 transfers, and calculate the tax due or overpayment.
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Step 10: Request an Extension if Needed and File the Return
If additional time is needed, file Form 7004 by the original due date to request an automatic extension, while paying any expected tax due to limit interest. Sign the return as required and mail it to the correct IRS service center address listed in the 2019 instructions, confirming whether you use USPS or a private delivery service.
Filing Deadline and Mailing Notes
For taxable distributions received in 2019, the due date is generally April 15, 2020, under the calendar-year rule. The 2019 instructions direct most filings to the Kansas City service center and include different addresses depending on the delivery method.
The mailing address should be verified using the instructions, especially if the filing occurs after the mid-2019 address change referenced in those instructions. This step helps avoid processing delays and reduces the risk of misdirected filings.
Final Pre-Filing Quality Check
Confirm that all taxable distributions supported by Forms 706-GS(D-1) are included and that distributions with an inclusion ratio of zero are excluded when applicable. Verify that Part II totals tie into Part III calculations and that the correct tax rate is used based on the instructions table.
Confirm that the distributee or authorized representative signs the return and that the required attachments are included. Retain a complete copy of the filed package for estate planning records and future estate tax documentation.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
