IRS Form 706 (2023): Late & Amended Filing Guide

What IRS Form 706 (2023) Is For

IRS 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. For decedents who died in 2023, Form 706 must be filed if the gross estate plus adjusted taxable gifts exceeds $12,920,000, or if the executor wants to elect portability to transfer the deceased spousal unused exclusion (DSUE) amount to a surviving spouse, regardless of estate size (IRS Instructions for Form 706, Rev. September 2023).

When You'd Use Form 706 for 2023 (Late or Amended Filing)

You might file a late or amended Form 706 for 2023 if you received IRS notices about unfiled estate tax returns, discovered errors in a previously filed return, or need to make a portability election. Common scenarios include missing the original 9-month deadline (plus any 6-month extension), receiving IRS correspondence requesting the return, or realizing that assets were undervalued or omitted from the original filing.

Under Rev. Proc. 2022-32, estates not otherwise required to file can elect portability up to five years after the decedent's death by writing “FILED PURSUANT TO REV. PROC. 2022-32 TO ELECT PORTABILITY UNDER §2010(c)(5)(A)” on the return (IRS Frequently Asked Questions on Estate Taxes).

Key Rules Specific to 2023

• Basic exclusion amount: $12,920,000
  
  
• Basic credit amount: $5,113,800
  
  
• Maximum special-use valuation reduction: $1,310,000 for qualifying family farms
  
  
• Portability election window: 5 years after death (through 2028 for 2023 deaths)
  
  
• Interest rate for underpayments: 8% annually, compounded daily (IRS Instructions for Form 706, Rev. September 2023)
  
  

Step-by-Step (High Level)

• Gather transcripts: Obtain estate tax account transcripts using Form 4506-T to understand any prior IRS activity on the account
  
  
• Complete correct-year form: Use the 2023 revision of Form 706, ensuring all schedules and supporting documents are included
  
  
• Attach required schedules: Include death certificate, certified copy of will (if applicable), appraisals, and any previously filed Forms 709
  
  
• File at correct address: Mail amended returns to Internal Revenue Service Center, Attn: E&G, Stop 824G, 7940 Kentucky Drive, Florence, KY 41042-2915
  
  
• Keep complete copies: Maintain copies of all filed documents, supporting materials, and proof of mailing for your records
  
  
• Make payments electronically: Use EFTPS or same-day wire transfer for any tax due, including estimated penalties and interest
  
  

Common Mistakes and How to Avoid Them

• Missing the portability notation required by Rev. Proc. 2022-32
  
  
• Incomplete asset valuations that risk penalties for understatement
  
  
• Omitting required supporting documents such as death certificates, wills, and Form 712 for life insurance
  
  
• Using the wrong mailing address (amended and late returns go to Florence, KY)
  
  
• Attaching penalty explanations with the initial filing instead of waiting for IRS request
  
  
• Forgetting to check whether your state requires an amended estate return when the federal return changes
  
  

What Happens After You File

The IRS typically takes 6–9 months to process Form 706, though amended returns may take longer. You'll receive acknowledgment of receipt and any notices about additional information needed or proposed adjustments.

If you owe additional tax, you can request an installment agreement using Form 9465, with approval typically within 30 days. For disputes, you have rights to appeal through the IRS Office of Appeals, which generally takes 3–6 months for resolution. Processing may be delayed if the return is selected for examination, which often occurs within 6 months of filing (IRS Instructions for Form 706, 2023).

FAQs

Penalties for Late Filing

The late filing penalty is 5% of the unpaid tax per month (or fraction thereof), up to 25% maximum, unless you can show reasonable cause. Late payment penalties and interest at 8% annually also apply to unpaid amounts (IRC Section 6651).

Portability Election Deadlines

If the estate wasn't otherwise required to file, you can use Rev. Proc. 2022-32 to elect portability up to five years after death. Write the required notation on the return and file a complete Form 706 with all schedules.

Getting IRS Transcripts

Use Form 4506-T to request estate tax account transcripts, which serve as alternatives to estate tax closing letters. These show all IRS transactions and can be obtained online through the Transcript Delivery System for authorized representatives.

Refund Statute of Limitations

Generally, you must file a claim for refund within three years from the return due date or two years from when the tax was paid, whichever is later. Special rules may apply depending on circumstances (IRC Section 6511).

State Estate Tax Amendments

State requirements vary. Some states require amended returns when federal returns are amended, while others have different procedures or no estate tax at all.

Payment Options if You Cannot Pay in Full

You can request an installment agreement using Form 9465, elect Section 6166 installment payments for qualifying estates, or explore limited options such as offers in compromise.

Recordkeeping Requirements

Keep all estate tax records for at least four years after the return is filed or the tax is paid, whichever is later. Longer retention may be needed if there are disputes or examinations.

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