What IRS Form 706 (2019) Is For

Form 706 is the United States Estate (and Generation-Skipping Transfer) Tax Return used by executors to calculate federal estate tax on a deceased person's estate (IRS Instructions for Form 706, 2019). For decedents dying in 2019, you must file this form if the gross estate plus adjusted taxable gifts exceeds $11,400,000, or if you're making a portability election to transfer unused estate tax exemption to a surviving spouse, regardless of estate size.

When You'd Use Form 706 for 2019 (Late or Amended Filing)

You might be filing Form 706 late for 2019 if you recently discovered the filing requirement, received IRS notices about an unfiled return, or need to make a portability election that wasn't filed timely. The original deadline was 9 months after the date of death in 2019, with a possible 6-month extension using Form 4768 (IRS Instructions for Form 706, 2019). Late filers may face penalties and interest charges under Section 6651, but can still file to comply with tax obligations and potentially qualify for reasonable cause relief. For portability elections, special relief procedures may be available under Revenue Procedure 2017-34 for estates filing up to two years after death.

Key Rules Specific to 2019

• Exemption amount: $11,400,000 basic exclusion, with a unified credit of $4,505,800
  
  
• Special-use valuation: Limited to $1,160,000
  
  
• Installment payment threshold: $1,550,000 for Section 6166 elections
  
  
• Processing address changes: Beginning July 2019, original returns were filed with Kansas City, MO, while amended returns were sent to Florence, KY
  
  
• Schedule R-1: Became a separate form starting in 2019 (no longer attached to Form 706)
  
  
• Annual gift exclusion: $15,000 per recipient
  
  

Step-by-Step (High Level)

• Gather financial records, appraisals, death certificate, and prior gift tax returns (Forms 709)
  
  
• Obtain IRS account transcripts via Form 4506-T or Transcript Delivery System to confirm prior filings
  
  
• Complete Form 706 (2019 revision), ensuring accurate asset valuations as of the date of death
  
  
• Attach required documents: certified will copy, Form 712 for insurance, appraisals, and relevant schedules (A–R)
  
  
• Mail to IRS Kansas City, MO 64999 (original returns) or IRS Florence, KY 41042-2915 (amended returns)
  
  
• Retain copies of everything filed, with delivery confirmation for your records
  
  

Common Mistakes and How to Avoid Them

• Missing portability election: Even estates under $11,400,000 must file if electing DSUE for a surviving spouse; late relief may be available under Rev. Proc. 2017-34
  
  
• Inaccurate valuations: Always obtain professional appraisals for real estate, businesses, and significant assets to avoid 20–40% understatement penalties (IRC § 6662)
  
  
• Gift reconciliation errors: Review taxable gifts since 1976, including those over $15,000 annual exclusion, and reconcile with Forms 709
  
  
• Wrong filing address: Kansas City for original filings, Florence for amended returns; incorrect addresses delay processing
  
  
• Omitting schedules/forms: Schedule R-1 must be filed separately; Form 712 is required for insurance; Schedule F and other schedules must be included even with zero values
  
  
• Failing to report GST transfers: Report transfers to “skip persons” using GST schedules, even when no estate tax is owed
  
  

What Happens After You File

The IRS will send acknowledgment of receipt and may request additional documentation for large or unusual estates. If tax is owed, installment agreements may be requested using Form 9465, or Section 6166 elections may allow closely held business estates to defer payments up to 10 years. Processing may take months, and closing letters must be requested (no longer automatically issued). Appeals are available if you disagree with IRS adjustments, but penalties and interest accrue until balances are fully paid.

FAQs

Can I still file Form 706 for 2019 if I missed the deadline?

Yes. File as soon as possible to stop further penalties. Penalties and interest accrue until filed and paid.

Do I need to file if the estate is below $11,400,000?

Not unless electing portability. Filing is mandatory if transferring unused estate tax exemption to a surviving spouse.

How much are penalties for late filing?

5% per month of unpaid tax (up to 25%) for late filing; 0.5% per month for late payment. Interest accrues on both.

Can transcripts substitute for a closing letter?

Yes. Account transcripts often provide needed confirmation and may be quicker. Request via Form 4506-T or IRS online tools.

Do I need to amend state estate tax returns too?

Maybe. Many states have separate estate taxes or “piggyback” on federal returns. Check with your state authority.

What if I discover additional assets after filing?

File an amended return marked “Supplemental Information” with pages 1–4 of the original return and documentation for the new assets.

What payment options exist for estate tax?

Check, EFTPS, installment agreements via Form 9465, or Section 6166 deferred payments if the estate includes qualifying closely held businesses.

‍