IRS Form 706 (2024): Estate Tax Return Filing Guide

IRS Form 706 is the federal estate tax return used to report a deceased person’s gross estate and calculate estate tax liability. Executors also use this form to elect portability for a surviving spouse when eligible. 

Late Filers

Executors who missed the original filing deadline should still file Form 706 to prevent additional penalties from accruing and preserve portability rights.

Multiple Asset Types

Estates containing real estate, securities, business interests, or financial accounts must separately report each asset category at fair market value.

Itemizing Deductions

Executors may deduct funeral expenses, debts, mortgages, and charitable transfers to reduce the estate’s taxable value and federal estate tax liability.

Claiming 2024 Credits

The 2024 applicable credit helps qualifying estates reduce or eliminate their federal estate tax liability after allowable reductions and adjustments have been applied.

IRS Compliance

Filing Form 706 creates an official IRS compliance record supporting estate administration, beneficiary protection, and future federal tax reporting requirements.

Citizens Abroad / Military

Nonresident non-citizen estates may require Form 706-NA, while military families could qualify for postponed filing deadlines under federal relief provisions.

Follow the steps below to complete Form 706 accurately and avoid processing delays. Several filing rules and elections apply specifically to the 2024 tax year.

Step 1: Gather Your Documents Before Starting

Collect the death certificate, will, investment statements, property appraisals, business valuations, and prior Forms 709 before preparing Form 706. Complete records help prevent valuation errors, missing schedules, and IRS follow-up notices during estate tax return processing.

Step 2: Confirm the Correct Form and Decedent Status [2024 Only]

U.S. citizens and resident aliens generally file Form 706, while nonresident non-citizens must file Form 706-NA instead. Executors should confirm the decedent’s residency and citizenship status before filing because those classifications affect marital deduction eligibility, portability elections, and Qualified Domestic Trust requirements for surviving spouses under federal estate tax rules. 

Step 3: Report All of the Decedent’s Assets on the Correct Schedules

Executors must report each asset category on its assigned Form 706 schedule, including real estate, securities, insurance proceeds, jointly owned property, annuities, transfers, and business interests. All reported assets should reflect fair market value as of the decedent’s date of death unless the estate properly elects alternate valuation under Section 2032. 

Step 4: Calculate the Taxable Estate and Gross Estate

After listing all assets, subtract allowable deductions for funeral expenses, debts, administration costs, and charitable or marital transfers. Executors must also include adjusted taxable gifts made after 1976 because those amounts affect the estate tax calculation and applicable federal credit determination.

Step 5: Apply Deductions and the 2024 Federal Estate Tax Exemption [2024 Only]

The 2024 federal estate tax filing threshold is $13,610,000, adjusted for prior taxable gifts and previously used exemptions. Executors may also apply deductions for debts, funeral expenses, and charitable transfers. Certain estates qualifying under Section 2032A may reduce the fair market value for eligible farm or closely held business property. 

Step 6: Elect Portability for the Surviving Spouse [2024 Only]

Executors must affirmatively elect portability on a timely filed Form 706 to transfer unused exclusion amounts to a surviving spouse. Simplified late portability relief may remain available for certain estates under current IRS procedures if the original filing deadline was missed.

Missing W-2s or Tax Records for 2024?

Executors filing late or amending Form 706 may not have every original financial record available. IRS and Social Security Administration records can help reconstruct income, filing history, and asset information needed for an accurate estate tax return.

IRS Wage & Income Transcript

This transcript shows wages, dividends, retirement distributions, interest, and other income reported to the IRS by third parties connected to the decedent’s financial and tax records. 

IRS Account Transcript

Executors can review prior tax filings, payments, penalties, assessments, and account history to confirm that the information reported on the estate tax return is accurate. 

Social Security Administration

SSA earnings and benefit records help executors to verify reported income history and confirm Social Security-related financial information connected directly to the decedent’s estate records. 

Contact Prior Employers

Banks, employers, and brokerage firms may provide missing wage statements, account balances, year-end summaries, and additional financial records that do not appear through standard IRS transcript requests alone. 

Do not estimate income or asset values when preparing Form 706. Use official IRS records to reduce follow-up notices and reporting errors.

These common filing mistakes frequently cause IRS processing delays, rejected estate tax returns, or missed federal estate tax benefits.

• Using the wrong tax year form — Filing an outdated version of Form 706 may cause processing delays because exemption amounts and schedules change between tax years.
• Missing the portability election — Failing to elect portability on a timely filed return may prevent surviving spouses from using unused federal estate tax exclusions.
• Incorrect fair market value reporting — Reporting estimated asset values instead of date-of-death fair market value commonly triggers IRS review and additional estate tax examination requests.
• Unreconciled lifetime gifts — Executors should match adjusted taxable gifts with previously filed Forms 709 to avoid IRS notices and estate tax processing delays later.
• Missing deductions for expenses — Executors often overlook deductible funeral expenses, debts, attorney fees, executor commissions, and administration costs that may significantly reduce taxable estate value.
• Assuming the closing letter is automatic—Executors must separately request an estate tax closing letter through Pay.gov after the IRS completes the estate tax return review process.
• Missing or incorrect Social Security numbers — Incorrect taxpayer identification numbers commonly create immediate IRS processing holds and delays during estate tax return review and verification procedures.
• Unsigned return—Form 706 requires a valid executor signature before submission, including handwritten, electronic, or other IRS-approved digital signature methods currently accepted.
• Missing required schedule attachments — Executors must attach all required schedules because incomplete filings commonly trigger IRS follow-up notices, processing delays, and additional review requests.

What is IRS Form 706 (2024) used for?

IRS Form 706 is the federal estate tax return that executors use to report a deceased person’s gross estate and calculate estate tax liability. Executors may also file Form 706 to elect portability, allowing surviving spouses to use unused federal estate tax exemption amounts under current IRS estate tax rules.

Can I still file an estate tax return for 2024?

Yes, executors may still file Form 706 after the original nine-month filing deadline passes. Filing promptly helps prevent additional failure-to-file penalties from accruing. It may preserve eligibility for portability elections or reasonable cause penalty relief under current IRS estate tax procedures and filing guidelines.

What is the 2024 federal estate tax exemption?

The 2024 federal estate tax exemption is $13,610,000 per decedent, subject to adjustments for prior taxable gifts and previously used exemptions. Estates below that threshold generally do not need to file Form 706 unless the executor elects portability for a surviving spouse under federal estate tax rules.

How long does the IRS take to process Form 706?

The IRS typically takes 9 months or more to process Form 706 and complete its review of estate tax matters. Executors expecting refunds, portability approval, or estate tax closing letters should prepare for extended processing periods before completing final estate administration activities or distributing estate assets to beneficiaries.

What is the portability election, and why does it matter?

The portability election allows surviving spouses to use the unused federal estate tax exemption of a deceased spouse. Executors must elect portability on a timely-filed Form 706, because missing the election deadline may reduce the future federal estate tax protection available to surviving spouses and estate beneficiaries.

What should I do if I discover additional assets after filing?

Executors discovering additional property, unreported gifts, or missing financial information after filing Form 706 should submit an amended return labeled “Supplemental Information.” Filing an amended return with updated schedules and written explanations helps maintain accurate estate tax reporting and significantly reduces future IRS compliance problems.

Do I need to file Form 1041 with Form 706?

Form 706 reports estate tax liability on the decedent’s assets, while Form 1041 reports income earned during estate administration. Estates generating at least $600 in annual gross income, or estates with nonresident alien beneficiaries, may need to file both federal forms with the IRS separately.

How do I request an estate tax closing letter?

Executors may request a closing letter for the estate tax through Pay.gov after the IRS completes its review of Form 706. The closing letter confirms that the IRS examination process has concluded and should remain part of the estate’s permanent administration, compliance, and federal estate tax documentation records.