Form 706-NA (2023): Nonresident Estate Tax Checklist
Purpose and scope
Form 706-NA is used to compute the United States estate tax and, when applicable, generation-skipping transfer tax for a decedent who was neither domiciled in the United States nor a U.S. citizen at death.
The return primarily reports U.S.-situated property, but it also requires worldwide asset totals to correctly compute deductions, limitations, and tax liability under the Internal Revenue Code.
Key definitions to apply consistently
Nonresident not a citizen (NRNC)
A decedent is classified as a nonresident, not a citizen, when the individual lacked U.S.
citizenship and U.S. domicile at death, based on facts and circumstances rather than immigration labels.
Relevant indicators may include green card status, substantial presence test outcomes, immigrant visa history, community affiliations, voting registration, driver’s license records, and other objective connections to the United States.
U.S.-situated gross estate vs worldwide estate
The U.S.-situated gross estate consists of property treated as located in the United States for federal estate tax purposes, including specific tangible personal property and qualifying intangibles.
Worldwide estate values must also be determined because Form 706-NA requires disclosure of non-U.S. assets to support deductions, proration calculations, treaty positions, and overall estate tax return accuracy.
Filing threshold and deadline (high-level)
Form 706-NA is generally required when the date-of-death value of U.S.-situated assets, combined with adjusted taxable gifts and applicable exemptions, exceeds the statutory $60,000 filing threshold.
The filing deadline is nine months after death, with an extension of time to file available through
Form 4768, although extensions do not delay payment of federal estate taxes.
Ten-Step Checklist (Final Corrected Version)
Step 1: Confirm NRNC status and executor responsibility
Confirm the decedent was not a United States citizen and not domiciled in the United States at death, and identify the executor or authorized estate representative responsible for filing.
Determine whether U.S.-situated gross estate assets exceed the filing threshold, documenting conclusions in a brief status memo retained for tax compliance and future IRS inquiries.
Step 2: Build the asset inventory and worldwide totals
Identify and document U.S.-situated assets subject to estate taxes, including residential property, tangible personal property, U.S. securities, and includible trust corpus interests.
Separately compute worldwide asset totals, since deductions, tax credits, and certain death tax treaties require proportional calculations comparing U.S. situs value to the total estate.
Step 3: Classify situs using statutory rules
Apply Internal Revenue Code situs rules rather than physical location shortcuts, especially for financial assets, intangibles, and accounts held with U.S. institutions.
Avoid assumptions based on account labels, custodians, or mailing addresses, and document classification decisions for each asset included or excluded from the U.S. gross estate.
Step 4: Gather valuation support using accepted methods
Obtain fair market value documentation as of the date of death, using appraisals, brokerage statements, valuation methods for closely held interests, and reliable cash balance confirmations.
Organize valuation support by Schedule A category to ensure clarity, traceability, and readiness for IRS review, estate tax closing letter requests, or TC 421 processing.
Step 5: Apply the correct NRNC unified credit framework
Do not apply the citizen or resident exclusion amount when computing estate tax liability for nonresident alien decedents under Form 706-NA.
Instead, apply the limited unified credit framework, generally equivalent to a $13,000 credit, subject to treaty adjustments and documented in accordance with Wealth Transfer Taxation principles.
Step 6: Prepare Form 706-NA schedules accurately
Complete Schedule A and other applicable IRS forms schedules using only U.S.-situated assets, ensuring descriptions, ownership details, and fair market value entries are precise and consistent.
Do not list worldwide assets in the U.S. gross estate section, but ensure worldwide totals are disclosed where required for deductions and filing requirements.
Step 7: Evaluate deductions and required proration
Identify allowable deductions, including funeral expenses, administration costs, debt obligations, and charitable deduction items, recognizing that NRNC estates often require proportional limitations.
Support deductions with documentation and worldwide asset disclosure, avoiding the incorrect assumption that deductions are categorically disallowed for non-resident aliens.
Step 8: Determine marital and GST implications if triggered
Evaluate marital deduction availability, confirming U.S. citizenship of the surviving spouse or proper use of a qualified domestic trust when applicable.
Address generation-skipping transfer tax only if a direct skip, taxable distribution, or generation-skipping trust involving U.S.-situated property triggers GST exemption or reporting obligations.
Step 9: Final review of identification and administrative items
Confirm identification number rules are followed, using a Social Security number, ITIN, or
IRS-assigned number only as instructed, without making default assumptions.
Verify math, cross-footing, valuation consistency, and attachment completeness before signing, including preparation for IRS transfer certificate or account transcript requests.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 10: File timely and retain proof of submission
File Form 706-NA by the filing deadline or request an extension of time using Form 4768, ensuring timely filing even when payment cannot be deferred.
Retain copies, tracking ID information, mailing proof, and supporting records to support estate management, tax compliance, and any future estate tax lien or closing letter correspondence.
Final quality-control review
Confirm U.S.-situated assets are correctly listed, worldwide totals are disclosed where required, deductions are prorated correctly, and unified credit calculations follow NRNC rules.
Verify the correct Internal Revenue Service mailing address, signature completion, and consistency across schedules before submission to avoid delays, user fee issues, or service time extensions.
Closing note
This checklist is intended as a practical reference guide for preparing Form 706-NA and for international estate planning considerations.
For complex treaty claims, valuation disputes, or cross-border estate management issues, professional advice from experienced tax attorneys is strongly recommended.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
