Section 106. Estate and Gift Tax Returns

(1) This transmits revised IRM 3.11.106, Returns and Documents Analysis - Estate and Gift Tax Returns.

(1) IRM 3.11.106.2(2) and (3) - Updated instruction adding Form 706-NA.

(2) IRM 3.11.106.2.8(2) - Updated routing Guide for Estate and Gift. (IPU 25U3361 issued 06-04-2025)

(3) IRM 3.11.106.4.5(1) and (3)- Added instructions for no entry 706-NA information.

(4) IRM 3.11.106.12(5) - Updated Form 706-NA page order to instructions.

(5) IRM 3.11.106.13.1.1(1) - Updated line reference for 202501 and later.

(6) IRM 3.11.106.13.2 was deleted with IPU 25U3549 - (1) and (2) - Added Religious Procedures for BMF Returns. (IPU issued 25U3375 06-05-2025)

(7) IRM 3.11.106.13.2 - Deleted subsection per feedback as it doesn’t apply to the 3.11.106 IRM. (IPU 25U3549 issued 08-07-2025)

(8) IRM 3.11.106.15.2(1) - Updated location of the PTIN.

(9) IRM 3.11.106.15.3(1) - Updated location of Firms EIN.

(10) IRM 3.11.106.15.4(1) - Updated location of Preparer’s phone number.

(11) IRM 3.11.106.18(1) and (3) - Added instructions for 202501 and later that Part VI , Section C Line 2 is no longer reserved and Form 706 page changes.

(12) IRM 3.11.106.18.1(1) - Updated line changes in Part I for 202501 and later. Removed Restrict from PGLD request.

(13) IRM 3.11.106.18.1.3(2) - Added correct line reference for 202501 and later.

(14) IRM 3.11.106.18.1.4(1) - Updated line changes in Part I for 202501 and later.

(15) IRM 3.11.106.18.1.4.1(1) - Updated line changes in Part I for 202501 and later.

(16) IRM 3.11.106.18.6.6(1) - Updated Box number for 202501 and later.

(17) IRM 3.11.106.18.6.8(3) - Added box changes with instructions for Form 706 for 202501 and later.

(18) IRM 3.11.106.18.7.1 - Updated Lines 15 through Line 23 to reference the line changes for Form 706 202501 and later.

(19) IRM 3.11.106.18.7.4(1) - Updated Green Rocker line number for Form 706 for 202501 and later.

(20) IRM 3.11.106.18.8.1(1) - Updated line numbers for 202501 and later and removed page references.

(21) IRM 3.11.106.18.8.2(1) - Added instructions for 202501 and later.

(22) IRM 3.11.106.18.8.2(2) - - Updated Mail Stop for Estate and Gift. (IPU 25U3361 issued 06-04-2025)

(23) IRM 3.11.106.18.9(1), (2) and (3) - Updated lines for 202501 and later and remove page reference.

(24) IRM 3.11.106.18.11(1) - Removed page reference in title and in Para 1 to accommodate the line changes between different Form version years.

(25) IRM 3.11.106.19.1(3) - Removed Page reference and added part number.

(26) IRM 3.11.106.19.2(1)- Removed Sweden from a Treaty Country.

(27) IRM 3.11.106.19.3(1)c - Updated Mail Stop for Estate and Gift. (IPU 25U3361 issued 06-04-2025)

(28) IRM 3.11.106.19.5(1) - Added location of executor address for 202501 and later and removed from restrict per PGLD.

(29) IRM 3.11.106.19.5.2(1) - Added prior year line number.

(30) IRM 3.11.106.19.6.5(1) second Then - Added instructions for when a Date of Birth is found.

(31) IRM 3.11.106.19.8.1(1) thru (18d) - Updated line numbers and names to reflect changes to 706-NA Form revisions for 202501 and later and removed page reference.

(32) IRM 3.11.106.19.9(5) - Updated Balance Due/Refund line is Line 17 for 202501 and later.

(33) IRM 3.11.106.19.11(1) - removed page reference and added part number for 202501 and later.

(34) IRM 3.11.106.20.3(2) - Updated Mail Stop for Estate and Gift. (IPU 25U3361 issued 06-04-2025)

(35) IRM 3.11.106.20.6(1) - Updated Mail Stop for Estate and Gift. (IPU 25U3361 issued 06-04-2025)

(36) IRM 3.11.106.20.7(1) - Updated Mail Stop for Estate and Gift. (IPU 25U3361 issued 06-04-2025)

(37) IRM 3.11.106.20.7(2) - Added 202501 and later instructions.

(38) IRM 3.11.106.21.3(2) - Updated Mail Stop for Estate and Gift.(IPU 25U3361 issued 06-04-2025)

(39) IRM 3.11.106.21.5(3) - Updated Mail Stop for Estate and Gift. (IPU 25U3361 issued 06-04-2025)

(40) IRM 3.11.106.21.6(1) - Updated Mail Stop for Estate and Gift. (IPU 25U3361 issued 06-04-2025)

(41) IRM 3.11.106.21.7(2) - Updated Mail Stop for Estate and Gift. (IPU 25U3361 issued 06-04-2025)

(42) IRM 3.11.106.23.2(2)f - Updated table with 2025 amounts.

(43) IRM 3.11.106.23.6.1(1) - Updated dates for early filed year.

(44) IRM 3.11.106.23.11 - Updated line changes Removed page reference in Title and added Direct Deposit Lines for 202501 and later.

(45) IRM 3.11.106.23.12.2(1) - Updated line numbers for Schedule A.

(46) IRM 3.11.106.25.4 - Removed 2 notes that are no longer needed.

(47) IRM 3.11.106.27.5(1) - Updated Mail Stop for Estate and Gift. (IPU 25U3361 issued 06-04-2025)

(48) IRM 3.11.106.27.10.4 - Updated line numbers to reflect 202501 and later return for form 706 GS-(T).

(49) IRM 3.11.106.28.4(1) - Updated line numbers for 202501 and later, Form 706-QDT.

(50) IRM 3.11.106.28.5(1) - Added instructions in If and Then table with line and part changes for 202501 and later for Form 706-QDT.

(51) IRM 3.11.106.29(5) - removed duplicate sentence number 4.

(52) IRM 3.11.106.29.2(1) - Added Foreign Country Name to Form 709-NA for TY 2025.

(53) IRM 3.11.106.29.8(1) - Updated tax period example to indicate YYMM format.

(54) IRM 3.11.106.29.10.1(1) - Added new line for editing the Foreign Country Name for Form 709-NA for 202501 and later.

(55) IRM 3.11.106.29.13.1(1) - Updated the dollar amounts for 529(C)(2)(B) for form 709-NA for 202501 and later.

(56) IRM 3.11.106.29.13.2(1) - Updated line references for 202501 and later, form 709-NA, 202501 and later.

(57) IRM 3.11.106.29.13.4(1) and (2) - Removed page references.

(58) Exhibit 3.11.106-1 - Added new Exhibit 3.11.106-1 for 2025 Form 706 and renumbered all remaining exhibits.

(59) Exhibit 3.11.106-3 - Added new exhibit 3.11.106-3 and renumbered remain exhibits for 2025 Form 706-NA.

(60) Exhibit 3.11.106-5 - Added new exhibit 3.11.106-5 and renumbered remain exhibits for 2025 Form 706-A.

(61) Exhibit 3.11.106-7 - Added new exhibit 3.11.106-7 and renumbered remain exhibits for 2025 Form 706-GS(D).

(62) Exhibit 3.11.106-10 - Added new exhibit 3.11.106-10 and renumbered remain exhibits for 2025 Form 706-GS(T).

(63) Exhibit 3.11.106-12 - Added new exhibit 3.11.106-12 and renumbered remain exhibits for 2025 Form 706-QDT.

(64) Exhibit 3.11.106-17 - Added new exhibit 3.11.106-17 and renumbered remain exhibits for 2025 Form 709.

(65) Exhibit 3.11.106-19 - Added new exhibit 3.11.106-19 and renumbered remain exhibits for 2025 Form 709-NA.

(66) Exhibit 3.11.106-37 - Added Applicable Credit Amount Foreign Spouse Exclusions and Annual Exclusion Amount for 202601 and later and removed old information.

(67) Changed Cincinnati Compliance to Cincinnati - Centralized Specialty Tax Campus Estate and Gift and added Mail Stop 824G throughout the IRM.

(68) Revise the Internal Revenue Manual (IRM), where necessary, for the following type of changes:

Plain language, simpler words

Spelling, grammar, and formatting

IRM references, citations, and links

Form titles

IRM graphics and alternative text

Added subsection throughout IRM where necessary

Scott Wallace Director, Submission Processing Taxpayer Services

Purpose: This subsection provides instructions for perfecting tax returns filed by taxpayers. This subsection contains instructions for coding and editing Estate and Gift Tax Returns Form 706, United States Estate (and Generation-Skipping Transfer) Tax Returns, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, Form 706-A, United States Additional Estate Tax Return, Form 706-D, United States Additional Estate Tax Return - Under Code Section 2057, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, Form 709-NA, United States Gift (and Generation Skipping Transfer) Tax Return of Nonresidence Not a Citizen of the United States, Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distribution, Form 706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust, Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, and Form 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts. Tax examiners will code and edit returns. It is not the intent of these instructions for tax examiners to audit the returns. These instructions apply to the Submission Processing Pipeline, Document Perfection Branch to Code and Edit (perfect) documents.

This IRM cannot address every possibility that may occur while correcting returns or documents. Take taxpayer intent into consideration. Refer issues not addressed in this IRM to your Subject Matter Expert (SME), lead or manager to determine the corrective action.

Audience:

Supervisory Tax Technician

Lead Tax Technician

Tax Examining Technicians

Supervisory Clerk

Lead Clerk

Clerk

Policy Owner: Director, Submission Processing.

Program Owner: Return Processing Branch, Business Master File (BMF) Section.

Primary Stakeholders: Other areas that may be affected by these procedures include (but not limited to):

Accounts Management (AM)

Small Business/ Self-Employed (SB/SE)

Large Business and International (LB&I)

Chief Financial Officer (CFO)

Taxpayer Advocate Service (TAS)

Statistics of Income (SOI)

Tax Exempt and Government Entities (TEGE)

Compliance, Modernized E-File (MEF)

Submission Processing (SP)

The purpose of Document Perfection is to code and edit (perfect) returns and other documents for input to the Master File (MF) through the Integrated Submission and Remittance Processing System (ISRP) or the Service Center Recognition Image Processing System (SCRIPS). In addition, Document Perfection forwards any other documents or attachments not related to the processing of the returns to the function responsible for handling them. It is not the purpose of Code and Edit to mathematically verify or to check the validity of the returns and other documents being processed unless otherwise specified in the applicable subsection. The computer and/or Error Correction (Resolution) will perform these functions if the returns and other documents are coded and edited as prescribed in the applicable subsections of this section.

for these procedures is found in the following laws and associated regulations:

IRC Section 6201(a)

Foreign Account Tax Compliance Act (FATCA)

Revenue Reconciliation Act of 1998 (RRA 98)

Technical and Miscellaneous Revenue Act of 1988 (TAMRA)

The above list may not be all inclusive of the various updates to the IRC

All Policy Statements for Submission Processing are contained in IRM 1.2.1, Servicewide Policy Statement.

The Campus Director is responsible for monitoring operational performance for the Submission Processing campus.

The Operations Manager is responsible for monitoring operational performance for their operation.

The Team manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

The team employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

Program Goal: Ensure documents are code and edit ready for transcription.

Program Reports: The Batch Block Tracking System (BBTS) captures and stores a vast amount of inventories used for processing.

Program Effectiveness:

Embedded Quality Submission Processing (EQSP)

Balance Measures

Managerial Reviews

Annual Review: Review the process included in this manual annually to ensure accuracy and promote consistent tax administration.

Federal Managers Financial Integrity Act (FMFIA).

Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.

The table lists commonly used acronyms and abbreviations and their definitions

Acronyms and Abbreviations

Definition

ADP

Automated Data Processing

APO

Army Post Office

BMF

Business Master File

c/o

Care of

C&E

Code and Edit

CC

Command Code

CCC

Computer Condition Code

CDP

Collection Due Process

CI

Criminal Investigation

CII

Correspondence Imaging Inventory

CP

Computer Paragraph

CSPC

Cincinnati Submission Processing Center or Cincinnati Submission Processing Campus

DLN

Document Locator Number

DPO

Diplomatic Post Office

EEFax

Enterprise Electronic Fax

e.g.

For Example

EIN

Employer Identification Number

ERS

Error Resolution System

etc.

Et Cetera

Exam

Examination

Fax

Facsimile

FedEx

Federal Express Corporation

FPO

Fleet Post

FRP

Frivolous Return Program

ID

Identification or Identity

IDRS

Integrated Data Retrieval System

ISRP

Integrated Submission and Remittance Processing

IMF

Individual Master File

IPU

Interim Procedural Update

IRC

Internal Revenue Code

IRS

Internal Revenue Service

KCSPS

Kansas City Submission Processing Center

LB&I

Large Business and International

MCC

Major City Code

MFT

Master File Transaction

N/A

Not Applicable

OAR

Operations Assistance Request

OID

Original Issue Discount

OMB

Office of Management and Budget

OSPC

Ogden Submission Processing Center or Ogden Submission Processing Campus

P&A

Planning and Analysis

PTIN

Preparer Tax Identification Number

QDT

Qualified Domestic Trust

R&C

Receipt and Control

Rev. Proc.

Revenue Procedure

RO

Revenue Officer

RRA98

Restructuring and Reform Act of 1998

SBSE

Small Business Self-Employed

SCRS

Service Center Replacement System

SERP

Servicewide Electronic Research Program

SFR

Substitute for Return

SLA

Service Level Agreement

SOI

Statistics of Income

SP

Submission Processing

SPDC

Submission Processing Design Center

SSN

Social Security Number

TAS

Taxpayer Advocate Service

TBOR

Taxpayer Bill of Rights

TC

Transaction Code

TE

Tax Examiner

TEGE

Tax Exempt and Government Entities

TETR

Telephone Excise Tax Refund

TIN

Taxpayer Identification Number

TPNC

Taxpayer Notice Code

TS

Taxpayer Services

U.S.

United States

UCC

Uniform Commercial Code

URL

Unidentified Remittance File

USPS

United States Postal Service

YYYYMMDD

Year, Year, Year, Year, Month- Month- Day -Day

ZIP

Zone Improvement Plan (ZIP Code) processing

The above list may not be all inclusive.

The following resources may assist in performing the work as outlined in this IRM.

Servicewide Electronic Research Program (SERP)

Submission Processing Design Center (SPDC)

The table lists Interpretation Words and their definitions.

Word

Definition

Example of using a word that is open to interpretation

This column is for illustration purposes only.

Fair

Provide accurate and professional service to all persons without regard to personal bias.

For example: Per the Taxpayer Bill of Rights (TBOR), taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay, or ability to provide information timely.

Significant Entry

Any entry other than zero or blank.

For example: Copy any significant amount on Line 1d to Line 2d, when the amount on Line 2d is blank and the Common Parent’s Name and EIN are blank.

Timely

Coming early or at the right time

For example: A Final return is received after the short period due date but received timely.

This subsection contains instructions for coding and editing Estate tax returns, Form 706 series, and Gift Tax Returns Form 709 series.

Hold any Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return or Form 706-NA , United States (and Generation Skipping) Tax Return Estate of Nonresident Not a Citizen of the United States, is received with a date of death for a current year. (January through June 15th)

Code and Edit - If a Form 706 or Form 706-NA, with a Date of Death is received for current year (January through June 15) do the following:

Do Not Process.

HoldForm 706, or Form 706-NA Tax Return on a batch cart in Code and Edit.

Label Batch cart “EXT” so they will be ready to be released to Integrated Submission and Remittance Process (ISRP) upon notification from Headquarter.

Notify Campus Planning and Analysis (P & A) daily and/or weekly of the count on documents received to provide to headquarters when requested.

Batch Form 706, or Form 706-NA Tax Returns in refund/non-refund batches so 45-day jeopardy refund returns can be closely monitored.

On any Form 706, Tax Return (no dollar threshold), review the Form 706 for the following criteria:

If Form 706, Part III, Question 2, 3 or 4 is checked Yes, the return must be sent to SBSE for classification. If this criteria is met, Code and Edit will remove these returns from the batch and have them batched/rebatched separately with like criteria Form 706/W6166. Edit Action Code 211 if correspondence is needed. Edit Action Code 370 if no correspondence is needed. These returns will be numbered with a Special 706 Document Locator Number (DLN) using assigned Block Numbers of 800-899 and a Block ID of 706/W6166.

Leave all Form 709 returns attached to the Form 706 unless Form 709 is for the current year of death and is not marked copy or similar language.

If Form 706, Part II, Line 4=0 and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return are included with Form 706, the return must be sent to SBSE. If this criteria is met, Code and Edit will remove these returns from the batch and have them batched/rebatched separately with like criteria met Form 706. Edit Action Code 211 if correspondence is needed. Edit Action Code 370 if no correspondence is needed. These returns will be numbered with a Special 706 Document Locator Number (DLN) using assigned Block Numbers of 600-799 and a Block ID of 706/Met.

Leave all Form 709 returns attached to the Form 706 unless Form 709 is for the current year of death and is not marked copy, or similar language.

≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If this criteria is met, Code and Edit will remove these returns from the batch and have them batched/rebatched separately with like criteria met Form 706. Edit Action Code 370. These returns will be numbered with a Special 706 Document Locator Number (DLN) using assigned Block Numbers of 600-799 and a Block ID of 706/Met.

This unique DLN will alert Submission Processing that these returns/batches will need to go to SBSE and SBSE will identify which items in their inventory will remain open and which can be closed. See IRM 3.11.106.3.1.3, Document Control.

Leave all Form 709 returns attached to the Form 706 unless Form 709 is for the current year of death and indicates copy or similar language.

The purpose of the BMF Consistency initiative is to achieve consistency in the BMF Code and Edit processing IRMs.

Ogden, Kansas City, and Return Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency

IRM 3.11.106 is exempt from BMF Consistency Guidelines, (for example indicating diamonds) as shown in other sections of IRM 3.11, Returns and Document Analysis.

The text in normal print within a consistency section signifies the common process to be used for all BMF returns. The text in bold print is form specific and applies to this IRM only.

Submit IRM deviations in writing following instructions from IRM 1.11.2.2.3, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevate through proper channels for executive approval.

The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98) Section 3705(a), gives identification requirements for all IRS employees working tax-related matters.

All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal representatives on tax-related matters must give (at a minimum) the following information:

Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID Card) number. Toll-free employees should also give their location for identification purposes. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.

Face-to-Face Contact - Their title (e.g., Mr., Mrs., Ms., Miss), give as appropriate during the conversation, their last name and badge identification (ID Card) number.

Correspondence (sent to the taxpayer and authorized representatives) - A telephone number that taxpayers can call for answers to questions. In addition, manually generated correspondence must have the employee’s title (e.g., Mr., Mrs., Ms., Miss), last name, Integrated Data Retrieval System (IDRS) number, and letter system number, which are systemically generated by IDRS. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.

Correspondex letters - Specific employee name and telephone number if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have or if the taxpayer is being asked to give more case-related information. If the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

When a taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayer's inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager.

Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves. They should provide their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.

It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either by telephone or in-person) their badge identification (ID Card) number on the first contact.

The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they’ve tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Taxpayer Services (TS) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19 Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs).

Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps can’t be taken to resolve the taxpayer's issue the same day.

The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution" :

The issue can be resolved within 24 hours.

IRS takes steps within 24 hours to resolve the taxpayer’s issue.

When making a TAS referral use Form 911, and forward to TAS following your local procedures.

See IRM 13.1.7.2, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

The National Taxpayer Advocate reached agreements with the Commissioners or Chiefs of the Taxpayer Services (TS) Division, Small Business and Self-Employed (SB/SE) Division, Tax Exempt and Government Entities (TE/GE) Division, Criminal Investigation (CI), Independent Office of Appeals, and Large Business and International (LB&I, formerly LMSB) Division, that outline the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

The SLAs are found at TAS Service Level Agreements.

BMF Identification Theft is increasing. If case is found with attachments or correspondence showing the taxpayer is a victim of ID Theft, give the entire case to your senior/lead.

The manager/lead will expedite the case to the Planning and Analysis (P & A) staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft" ; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

See IRM 25.16, Disaster Assistance and Emergency Relief, for specific conditions that qualify a taxpayer for relief.

If

Then

A taxable return qualifies and is received within the timeframe prescribed.

No penalty or interest is assessed on non-taxable returns, therefore, no action needs to be taken.

Prepare Form 4227, Intra-SC Reject or Routing slip to alert Cincinnati Centralized Specialty Tax, Estate and Gift Mail Stop 824G that Computer Condition Code (CCC) "R" (Failure to file penalty) determination is requested.

Route copy of Page 1 and letter requesting CCC "R" to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G that Computer Condition code (CCC)"R" to suppress failure to file penalty.

A qualifying return is "R" coded.

Change the IRS received date and edit to reflect timely filing.

Form 706, United States Estate (and Generation -Skipping Transfer) Tax Return, is annotated at the top of Page 1 of the return "(IRC) Section 2201" or has any indications the return is the result of legislation impacting victims of terrorist attacks (April 19, 1995 - Oklahoma City bombing; September 11, 2001 - World Trade Center bombing; or references to deaths resulting from anthrax that occurred on or after September 11, 2001, and before January 1, 2002)

Edit CCC "B" .

A special tax rate schedule will apply to victims of terrorist attacks. Error Resolution System (ERS)/Rejects will verify the appropriate tax computation.

All other credits against the estate tax (including unified/applicable credit) apply to these returns.

Correspondence Imaging Inventory (CII) is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working cases from those images.

"CII " returns are shown with "CII Image-Do not correspond for Signature" stamped below the signature line or "CII" is annotated on the front of the return.

Estate and Gift returns should not be going through this inventory system, but if you have a Form 706, Form 709 or 709-NA series return stamped as a CII image in your batch of work, prepare Form 4227, Intra-SC Reject or Routing Slip and route to Kansas City Submission Processing Error Resolution Team.

Review all attachments to the return before the return can be considered processable.

Attachments must contain name, address, Social Security Number (SSN)/ Employer Identification Number(EIN) and the IRS received date. Edit, if missing. Do not detach any unsigned returns or attachments from original return. If an attachment does not have a signature line and return is signed you should detach.

Only detach attachments when specifically instructed.

Consider a return or document an "Original" if it has an original signature or has been stamped "Process as Original"

Edit Action Trail(s) (e.g., "Form 2848 DETACHED)" in the lower left corner going vertically up the side of the return.

Edit the name and SSN/EIN (if not present) on the detached document. Also, edit the return received date (e.g., Rec’d MM/DD/YY) in the lower left margin of the detached document before routing

Follow the general guidelines below written for each attachment.

Form/ Document

Title

Detach

Action

56

Notice Concerning Fiduciary Relationship

Yes

Prepare Form 4227, Intra-SC Reject or Routing Slip and include Letter of Appointment or pertinent information, and route to Entity Control.

706

United States Estate (and Generation-Skipping Transfer) Tax Return

Yes

If original return, or copy with original signature, (see IRM 3.11.106.18, Processing Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return).

706 With Original Form 709 Attached

United States Estate (and Generation-Skipping Transfer) Tax Return and United States Gift (and Generation Skipping Transfer)Tax

Yes, if the Form 709 is same tax Period as the Form 706, Detach the Form 709, No if Form 709 is not the same tax period as the Form 706

IRM 3.11.106.10.8 CCC “R” Reasonable Cause for Delinquency, and IRM 3.11.106.18.3.2, Extension Form 706 with Form 709 attached.

706-A

United States Additional Estate Tax Return

Yes

If original return, or copy with original signature, (see IRM 3.11.106.20, Processing 706-A United States Additional Estate Tax Return).

706-CE

Certificate of Payment of Foreign Death Tax

No

If filed separately, route to Cincinnati - Centralized Specialty Tax Estate and Gift, Mail Stop 824G.

706-D

United States Additional Estate Tax Return Under Code Section 2057

Yes

If original return, or copy with original signature, (see IRM 3.11.106.21, Processing Form 706-D, United States Additional Estate Tax Return - Under Section 2057).

706-GS(D)

Generation-Skipping Transfer Tax Return For Distribution

Yes

If original return, or copy with original signature, (see IRM 3.11.106.25, Processing Form 706-GS(D) Generation-Skipping Transfer Tax Return for Distribution).

706-GS(D-1)

Notification of Distribution From a Generation-Skipping Trust

Yes

If original return, or copy with original signature, (see IRM 3.11.106.26, Processing Form 706-GS(D-1), Notification of Distribution from a (Generation-Skipping Transfer). (Forward all separate D-1s Cincinnati Centralized Specialty Tax Campus, Estate and Gift, Mail Stop 824G.)

706-GS(T)

Generation-Skipping Transfer Tax Return form Terminations

Yes

If original return, or copy with original signature, (see IRM 3.11.106.27, Processing Form 706-GS(T), Generation-Skipping Transfer for Return for Termination.).

706-NA

United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States

Yes

If original return, or copy with original signature, see IRM 3.11.106.19, Processing Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States.

706-QDT

United States Estate Tax Return for Qualified Domestic Trusts

Yes

See IRM 3.11.106.28, Processing Form 706-QDT, United States Tax Return for Qualified Trusts.

706 Sch PC

Protective Claim for Refund

Yes

Make a copy of Sch PC, prepare Form 4227, Intra-SC Reject or Routing Slip and send to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G. Notate on original that a copy has been sent.

If schedule PC is blank do not route. This form doesn’t have a signature.

706 Sch S (obsolete)

Increased Estate Tax on Excess Retirement Accumulations

No

Attach Form 4227, Intra-SC Reject or Routing Slip and route to Entity Control.

709

United States Gift (and Generation-Skipping Transfer) Tax Return

Yes

If original return, or copy with original signature, (See IRM 3.11.106.23, Processing Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return

709 Attached to Form 709-NA

United States Gift (and Generation-Skipping Transfer) Tax Return

Yes

See IRM 3.11.106.29.3, Amended Returns - Form 709-NA, and IRM 3.11.106.10.5.1, Amended Returns, for more information.

709-A (obsolete)

United States Short Form Gift Tax Return

Yes

If original return, or a copy with original signature, process as directed (See IRM 3.11.106.24, Processing Form 709-A, United States Short Form Gift Tax Return). If copy, leave attached as supporting document.

709-NA

United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States

See IRM 3.11.106.29, Processing Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.

709-NA Attached to Form 709

United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States

Yes

See IRM 3.11.106.29.3, Amended Return - Form 709-NA, and IRM 3.11.106.10.5.1, Amended Returns, for more information.

712

Life Insurance Statement

No

Leave attached as supporting document.

843

Claim for Refund and Request for Abatement

Yes

Send Form 843, Claim for Refund and Request for Abatement to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G on Form 4227, Intra-SC Reject or Routing Slip, Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.

1127

Application for Extension of Time for Payment of Tax Due to Undue Hardship

Yes

When the request relates to Form 706, Form 706-NA, Form 709, or Form 709-NA, Prepare Form 4227, Intra-SC Reject or Routing Slip and send to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G. Do Not forward requests related to income tax.

Attach a photocopy of the envelope to the original return before routing to Compliance. It may be needed to determine the received date.

1310

Statement of Person Claiming Refund Due a Deceased Taxpayer

Yes

Prepare Form 4227, Intra-SC Reject or Routing Slip and route to Accounts Management.

1332

Block and Selection Record

No

2350

Application for Extension of Time to File U.S. Income Tax Return

No

2848

Power of Attorney and Declaration of Representative

Yes

Route as follows: Ogden - Route to Mail Stop 6737 Cincinnati - Route to R & C Internal Revenue Service 5333 Getwell Rd. Mail Stop 8423 Kansas City - route to Internal Revenue Service 5333 Getwell Rd. Mail Stop 8423 Memphis, TN 38118 For Private Delivery Carriers Internal Revenue Service 5333 Getwell Road Mail Sop 84123. Memphis, TN 38118

3198

Special Handling Notice for Examination Case Processing

No

3233

Report of Gift Tax Examination

No

3465

Adjustment Request

No

3696

Correspondence Action Sheet

No

3696A

IDRS Correspondence Action Sheet

No

3753

Manual Refund Post Voucher

No

See IRM. 3.11.106.10.7, CCC “O” Module Freeze.

3893

Re-entry Document Control

No

Stays on the front of return

4349

Computation of Estate Tax Due With Return and Annual Installment

Yes

See IRM 3.11.106.18.8.2, (IRC) Section 6166.

4422

Application for Certificate Discharging Property Subject to Estate Tax Lien

No

If attached to Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return,

prepare Form 4227, Intra-SC Reject or Routing Slip:

attach copies of Form 4422, Application for Certificate Discharging Property Subject to Estate Tax Lien,

and Pages 1, 2, and 3 of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return:

and route to Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G.

4506

Request for Copy of Tax Return

Yes

Route to KC RAVIS Team Mail Stop 6705 S - 2

4506-T

Request for Transcript of Tax Return

Yes

Route to KC RAVIS Team Mail Stop 6705 S - 2

4768

Application for Extension of Time to File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes

Yes (Balance Due Return with Original Form 4768, Application for Extension of Time To File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes only) Do not detach copies of 4768 or an Original 4768 on a No balance due return.

Route to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G.

4810

Request for Prompt Assessment Under Internal Revenue Code Section 6501 (d)

Yes (Form 709 series returns only)

Send original Form 4810, Request for Prompt Assessment, and copy of Page 1, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, Form 709-NA United States Gift (and Generation Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States on Form 4227, Intra-SC Reject or Routing Slip to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G.

4868

Application for Automatic Extension of Time to File U.S. Individual Income Tax Return

No

5347

Examination Multiple Request Master File

Yes

Route on Form 4227, Intra-SC Reject or Routing Slip to Cincinnati Centralized Specialty Tax Estate and Gift, Mail Stop 824 G.

5495

Request for Discharge from Personal Liability Under Internal Revenue Code Section 2204 or 6905

No

Form 5495, Request for Discharge from Personal Liability should stay attached to the return. If the form comes in by itself, then is should be sent to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G using, Form 4227, Intra-SC Reject or Routing Slip.

5792

Request for IDRS Generated Refund (IGR)

No

See IRM 3.11.106.10.7, CCC "O" , Module Freeze.

6459

Return Preparer’s Check sheet IRC 6694 and IRC Section 6695

No

6882

IDRS/Master File Information Request

Yes

Route on Form 4227, Intra-SC Reject or Routing Slip to Customer Service.

7004

Application for Automatic Extension of Time to File Certain Business Income Tax Information and Other Returns.

No

8821

Tax Information Authorization (TIA)

Yes

Edit taxpayer name and Social Security Number (SSN) on Form 8821, Tax Information Authorization (TIA), if missing.

Edit received date on Form 8821, Tax Information Authorization (TIA).

Domestic address -

Fax to Memphis CAF at 855-214-7522

Route to Memphis CAF at: Internal Revenue Service PO Box 268, Stop 8423 Memphis, TN 38101. Kansas City - route to: Internal Revenue Service 5333 Getwell Rd. Mail Stop 8423 Memphis, TN 38118

Foreign (International) address - Route to Philadelphia CAF.

Edit action trail on tax return.

8822

Change of Address

No

Take no action.

8833

Treaty -Based Return Position Disclosure Under Section 6114 or 7701(b)

No

Edit CCC "L" . See IRM 3.11.106.10.6.

8886

Reportable Transaction Disclosure Statement

No

8892

Application for Automatic Extension of Time to File Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return

No

8939

Allocation of Increase in Basis for Property Acquired from a Decedent

Yes

Route on Form 4227 Intra-SC Reject or Routing Slip to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G.

8971

Information Regarding Beneficiaries Acquiring Property from a Decedent

Yes

Route on Form 4227, Intra-SC Reject or Routing Slip to Cincinnati Centralized Specialty Tax Campus Estate and Gift, Team 106 Mail Stop 8307F.

9465

Installment Agreement Request

Yes

Ogden - Route to Collection. Cincinnati - Route to R & C. Kansas City - Route to Mail Stop P4 5000.

12857

Refund Transfer Posting Voucher

No

See IRM 3.11.106.10.7 CCC O Module Freeze

13133

Expedite Processing Cycle

No

Used to flag special returns for processing on an expedite basis (replaces 6469, Expedite Processing Request). See IRM 3.11.106.4.11.3, Examination Prepared and IRM 3.11.106.4.11.4, Examination Secured.

Form 14039-B,

Business Identity Theft Affidavit

No

If the envelope is addressed to a specific function or a specific function is indicated by an IRS CP notice or IRS letter, place the Form 14039 - B, Business Identity Theft Affidavit, on top and route Form 14039 - B, Business Identity Theft Affidavit, and the return to the specific function. Cincinnati, Ogden or Kansas City, receives a Form SS - 4, Application for an Employer Identification Number and Form 14039 - B, Business Identity Theft Affidavit, route the returns to BMF Entity Control. 201 W. Rivercenter Blvd. Mail Stop 343 Covington, KY 41011. For the following returns:

Loose Form 14039 - B.

No correspondence attached (e.g., no IRS CP notice or IRS letter).

The envelope is not addressed to a specific function.

Sch R-1

Generation-Skipping Transfer Tax (Direct Skips from a Trust Payment Voucher)

Yes (If Schedule R-1 has money amounts other than zero on Page 1, Lines 1 through 6; and there is an original signature.)

Re-batch as Program 75700 to Accounting Non-Master File (NMF).

Petitions in opposition of tax law provisions

Yes

No Action Trail needs to be edited when detaching a petition.

Route as follows : IRS ≡ ≡ ≡ ≡ ≡ ≡ 1111 Constitution Avenue, NW Washington, DC

Other Business Returns (Originals)

(Various return types and titles)

Yes (if the return has an original signature)

Process as directed per code and edit instructions used for processing of that form type.

Copies of Other Business Returns

(various return types and titles)

No

Leave attached to Form 706 and Form 709 series returns.

Request for Acknowledgment

No

No action required.

Request for adjustment to another document

Yes

Prepare Form 4227, Intra-SC Reject or Routing Slip and route to Accounts Management for subsequent action. Include: action required, name, address, Social Security Number (SSN) of the taxpayer, and the IRS received date.

Other unrelated documents (i.e., requests for tax forms, or letters requiring a reply)

Yes

Prepare Form 4227, Intra-SC Reject or Routing Slip and route to appropriate area. Include: action required, name, address, Social Security Number (SSN) of the taxpayer, and the IRS received date.

The taxpayer writes a question or request for assistance on the return itself

Photocopy the question/request and the taxpayer's Taxpayer Identification Number (TIN), name, and address. Forward this information to the appropriate area via Form 4227, Intra-SC Reject or Routing Slip.

Data from any removed attachment is necessary to process the return

Copy the removed attachment and attach the copy to the return being processed.

Taxpayer has requested part of the refund be applied to another account

See IRM 3.11.106.10.11, CCC "X " Return Settlement Frozen.

Remittance is attached

Take to your manager. See IRM 3.8.46.1, Deposit Activity - Discovered Remittance.

An attachment indicates the taxpayer has included tax liability for more than one type of tax on a numbered or unnumbered return

Adjustment action is needed, therefore, prepare Form 3465, Adjustment Request; photocopy Page 1 of return, and route to Accounts Management.

Leave action trail on left side of return.

Edit CCC "X" on return. (See IRM 3.11.106.10.11, CCC "X - " Return Settlement Frozen.)

Continue processing return.

An attachment indicates the taxpayer has included more than one tax period on a numbered return (Form 709 series only)

Edit Action Code 351.

Attach Form 4227, Intra-SC Reject or Routing Slip notating, Multiple Tax Periods.

An attachment indicates the taxpayer has included more than one tax period on an unnumbered return (Form 709 series only)

Correspond using Form 3696, Correspondence Action Sheet, or other approved Correspondence Action Sheet.

An attachment to a tax return indicates that this is the final return for which the taxpayer will be liable

Edit CCC "F" on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, only. The Date of Death must be in the same year as the gift was given.

An attachment to a return establishes reasonable cause for delinquent filing

See IRM 3.11.106.10.8, CCC "R -" Reasonable Cause for Delinquency.

Attach the envelope to the back of the return. It may be needed to determine the received date.

Attachment to a return establishes reasonable cause for failure to pay

See IRM 3.11.106.10.3, CCC "D" Reasonable Cause for Failure to Pay Taxes Timely.

Attach the envelope to the back of the return. It may be needed to determine the received date.

The following instructions pertain to Document Control.

Sort Estate tax returns (Form 706 United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States into blocks of 15 or less.

Sort Gift tax returns Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States Form 706-GS(D) Generation-Skipping Transfer Tax Return For Distribution and Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, into blocks of 50 or less. See IRM 3.10.72, Campus Mail and Work Control - Extracting, Sorting, and Numbering.

Separate accounting controls are established for each block created.

The following information pertains to numbered returns:

If

Then

The document is a different type than the numbered block in which it is found

Use either CCC "U" or Action Code 610, whichever is applicable.

The numbered return is in an unnumbered batch of documents

Give it to your manager for inclusion in the correct batch.

A re-input document may have 2 different DLNs stamped on it because of re-blocking. When this occurs, determine the correct Document Locator Number (DLN) from the Form 3893, Re- Entry Document Control, and line through the old DLN on the return.

The first eleven digits of the DLN on the documents in a block do not agree with the DLN stamped on Form 1332, Block and Selection Record, and on the face of the Block Jacket

Bring any difference to the attention of your manager.

Check only the DLN of the first document in the block.

Circle the number on the Form 1332, Block and Selection Record, which represents the number of documents in the block.

Numbered returns will be received in Document Perfection after blocking, numbering, and listing in Deposit Activity.

Any returns requiring subsequent action for perfection cannot be withdrawn from the block in Document Perfection. They can be coded for later withdrawal.

Unnumbered returns that are blocked should be withdrawn from the batch and appropriate action taken to perfect the returns.

A Document Locator Number (DLN) is assigned to each document processed in the Automatic Data Processing (ADP) System and is used to locate the document.

Examine the documents to ensure that all documents in a block are the same type and are in DLN order. See Figure 3.11.106-1, Document Locator Number.

Figure 3.11.106-1

Please click here for the text description of the image.

The type of document is defined as a specific tax class and document code explained in Document 6209, IRS Processing Codes and Information.

A block of documents must be controlled by a Block Control Document.

The Block Control Documents are as follows:

Form 1332, Block and Selection Record, for no-remittance documents.

Generally, no-remittance returns will be processed through Code and Edit unnumbered. There should be no occasion for a block of no-remittance returns to be examined under Form 1332, Block and Selection Record.

Form 3893, Re-Entry Document Control for re-entry of document(s) under original DLN.

If

Then

A block does not have a control document

Send back to the originating unit, routed through Accounting.

More than one document is being re-entered from the "same" original block

Attach Form 3893, Re-Entry Document Control to the first document in the re-entry block.

If more than one document is in the block, edit the number of documents in the document count box of Form 3893, Re-Entry Document Control.

Leave Form 3893, Re-Entry Document Control, attached to the front of the return.

The following table pertains to Unprocessable conditions for Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return and Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States.

If

Then

Name, address, and/or SSN is illegible, incomplete or contradictory so that it is not acceptable for computer processing

Research IDRS.

If no data found, use Form 4227, Intra-SC Reject or Routing Slip to route to Entity Control.

If return is numbered, edit Action Code 320.

Taxpayer indicates on documents or attachments that the documents represent liability for more than one tax period or more than one type of tax

Use Action Code 211 for correspondence.

Tax data entries on documents are incomplete, illegible, or contradictory so that tax liability cannot be determined

Edit Action Code 211 for correspondence.

Entity Perfection cannot be perfected on amended returns.

Research IDRS.

If no data found, use Form 4227, Intra-SC Reject or Routing Slip to route to Entity Control.

If return is numbered, edit Action Code 320.

Numbered returns (Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of Nonresident Not a Citizen of the United States, of taxpayers who file Form 706-NA instead of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, (U.S. citizens by reason of birth, who established residence in a possession of the U.S. and died after September 2, 1958)

Edit Action Code 610.

The following table pertains to Unprocessable conditions for more than one tax period:

Form 706, United States Estate (and Generation-Skipping Transfer)Tax Return, and Form 706-NA United States Estate (and Generation-Skipping Transfer) Nonresident Not a Citizen of the United States, are one-time filers.

If

Then

A remittance return and information for preparation of dummy return(s) is available

Edit Action Code 351 and route to the Rejects Function to prepare a dummy return.

Information is not available

Edit Action Code 351 and correspond for information.

An unnumbered return

Correspond using Form 3696, Correspondence Action Sheet or other approved Correspondence Action Sheet.

Non-remittance document is Unprocessables because of an illegible name or erroneous SSN

Route the document to Entity Control using Action Code 320.

Remittance document is Unprocessables because the name is illegible or the SSN is missing

CCC "U" or use Action Code 320 (if name is illegible) or 351 (if SSN is missing), and route to Entity Control.

The taxpayer's TIN and/or name cannot be determined from attachments or after research per local Service procedures, and the return cannot be sent back to the taxpayer for lack of name, and/or address

The return is considered as an Unprocessables return. The following instructions should be followed:

Numbered

Edit the appropriate CCC or Action Code.

Prepare a Form 4227, Intra-SC Reject or Routing Slip indicating to the Rejects Unit to void the DLN and destroy the return in accordance with Document 12990, IRS Records Control Schedule(RCS) 29, Tax Administration - Taxpayer Services (TS) Records.

Unnumbered

Pull from the batch and give to your manager for disposition in accordance with Document 12990, IRS Records Control Schedules (RCS) 29, Tax Administration - Taxpayer Services (TS) Records.

need the following information:

Decedent's Name

Social Security Number

Executor's Address

Signature of Executor or one coexecutor

If any of the above items are missing or cannot be perfected, prepare Form 4227, Intra-SC Reject or Routing Slip and route to Cincinnati Centralized Tax, Estate and Gift Exception: Correspond for signature of Executor or one coexecutor.

DO NOT correspond for death certificates.

need the following information:

Donor's Name

Social Security Number

Address

Signature of donor

Spouse's Name, if applicable

Spouse's SSN, if applicable

If the return is incomplete (i.e., only page 1 and/or 2 are present with money amounts), continue processing.

The Internal Revenue Code required quarterly gift tax returns for tax periods 197012 to 198012. If Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, for these periods are received, route the returns to Cincinnati Centralized Tax, Estate and Gift on Form 4227, Intra-SC Reject or Routing Slip.

Taxpayers use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Return Program, for a list of recognized frivolous arguments made by taxpayers.

Review the return to decide whether it appears to be a frivolous return.

If

Then

The return meets any of the conditions in the table below

If the return shows Action Code 331 and has a Form 4227, Intra-SC Reject or Routing Slip attached with the remarks: "Refer to Exam FRP for audit after processing" , continue to next procedure.

Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Processing (FRP) for review.

IRM 25.25.10, Frivolous Return Program, requires Examination to expedite the return and make a determination whether it qualifies as a frivolous return within 2 business days. If a determination is not made within the allowed timeframe, the Examination examiner will edit Action Code 331 in the lower left margin of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, or Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, preceded with the letters "AC" .

Examination has selected the return as frivolous, e.g., shown by an Action Code 331 and a Form 4227, Intra- Sc Reject or Routing Slip with the remarks: "Refer to Exam FRP for audit after processing" , but sends the return for processing

Continue processing the return using procedures in IRM 3.11.106. However, do not circle or void the Action Code showing a frivolous return.

Recognized frivolous arguments made by taxpayers include, but are not limited to, the examples in IRM 25.25.10, Frivolous Return Program, shown below:

Reason

Description

Alleged Churches/First Amendment

Income from non-religious sources could claim a vow of poverty.

Altered Form

Altering any or all line items with the intent of facilitating non-compliance with the tax laws.

Altered Jurat/Uniform Commercial Code (UCC) 1-207 or UCC 1-308

Return contains income and deductions but the jurat has been altered or stricken, could include reference to UCC 1-207, UCC 1-308 or a statement that the return was not signed under penalties of perjury.

Amended Returns/ Form 843 Claim for Refund and Request for Abatement

Amended return or a Form 843, Claim for Refund and Request for Abatement, filed to obtain a total refund of all taxes paid in prior years, based on a tax avoidance argument.

C-Filings

This frivolous position includes the following 4 categories:

Files a return claiming various types of deductions, credits, or overpayments/refunds that have no relation to reality and because of their outrageous character, qualify as frivolous returns.

Files a return containing the filers identifying information but does not request a refund, often lacking sufficient information to determine a tax liability.

Files a return with various types of rambling dialogue and/or confusing arguments that no one could reasonably view as a good faith attempt to comply with the law.

Files a return that attempts to send some type of message or protest to the IRS but fails to include sufficient identifying information for the Service to either determine the identity of the taxpayer or correspondent or return address.

Challenges to Authority/Due Process

Questions various administrative authorities such as delegation orders, summons authority, privacy act. Argues that they must be afforded a hearing or a trial before taxes can be assessed or before property can be seized.

Challenged to Authority/Title 26 or "law" in other documents

Argues that Title 26 of the United States Code is not law because it was never enacted as named.

Collections Issues

Files frivolous documents contending that various collections issues are invalid (e.g., Offers in Compromise, Collection Due Process Requests, Installment Agreements, Appeals Requests.) because they are not filed and/or signed by someone with delegated authority. They may have no certificate of assessment attached, do not comply in form or content with a State or Local law, are not in a certain format or lack a valid OMB (Office of Management and Budget) number or other frivolous positions.

Disclaimer

Submits a disclaimer stating, "disclaims the liability for the tax due" , making the liability on the return zero.

Fifth Amendment

Assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information.

The IRS is a Private Organization/Collects Tribute, Not Taxes

Argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933, it is a collection agency for the Federal Reserve Bank or is part of the United Nations and is clandestinely leading the taxpaying public into a "new world order" .

Not a Person

Argues that a taxpayer is not a "person" within the meaning of (IRC) Section 7701(a)(14).

Obscene, Vulgar, Harassing

Submits documents or other materials indicating that non-filing is due to dissatisfaction with tax policies or taxation in general. Often, this argument is expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner.

Protest Against Government Action/Inaction

Argues that refusal to file or pay is justified because they disagree with government policies or spending plans.

Sixteenth Amendment

Argues the Sixteenth Amendment was not properly ratified and therefore the federal government does not have the legal authority to collect an income tax without apportionment.

"Straw Men"

Argues the government has created an entity separate and distinct from the taxpayer - a "straw man" and any tax obligations are exclusively those of the "straw man" .

Taxes are Voluntary/Law Does Not Require

Submits a return, amended return, or correspondence that argues income taxes are voluntary.

U.S. v. Long

Submits a return with zero money amounts much the same as the "Zero Return" category and "U.S. v. Long" is referenced. (See Note in Zero Returns below.)

Unsigned Returns

The individual completes a return but fails to sign. A statement indicating disagreement with the tax system is attached or added to the return.

Valuation

Income is not taxable because of the declining fair market value of the dollar, because the dollar is not backed by gold/silver, because the value of services is offset by the value of the labor (barter income), etc.

Zero Returns

Submits a return with zero money amounts. A statement is attached claiming there is no section of the Internal Revenue Code that established an income tax liability. The statement may also contain arguments regarding the definition of income.

Returns having only zeros, no entries, are blank, or indicate "None" , "Not Liable" , etc., with no evidence of frivolous arguments are not to be considered as frivolous returns.

Other

All others including those listed in Notice 2010-33 or any subsequent notice. This category includes non-filer accounts resulting from initial compliance check such as cross-reference TINs.

Frivolous arguments citing "Collection Due Process" (CDP) should be reviewed by Collections for possible referral to Appeals. Refer to IRM 5.19.8, Collection Appeal Rights, for additional information.

A "Tentative" estate or gift tax return on the appropriate form showing only the taxpayer's name, address, and estimated amount of tax due is not considered a complete return since it does not contain a signature, information about the decedent’s gross estate (Form 706), United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA United States Estate (and Generation Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, or the total gifts of donor (Form 709), United States Gift (and Generation-Skipping Transfer) Tax Return, or the total gifts of Donor, (Form 709-NA), United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States and allowable deductions, credits and prepayments.

An estate or gift tax return containing only the taxpayer's name and referring to various constitutional provisions which are said to excuse filing a return should be treated as a "no entry return" , invalid, and Unprocessables.

A bare statement of gross/net estate (Form 706), United States Estate (and Generation-Skipping Transfer) Tax Return, or total gifts, Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return, Form 706-NA United States Estate (and Generation Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, or total gifts Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, constitutes an invalid and Unprocessables return.

An estate or gift tax return which is blank, except for the heading and the signature, is considered as a "no entry return" , invalid and Unprocessables.

If correspondence is not needed for Unprocessables items, the statute begins when the IRS receives the return. If correspondence is needed, the statute begins when the reply is received.

If

Then

An Unprocessables estate or gift tax return is received in the mail and indicates tentative, undetermined, etc. (numbered or unnumbered)

Edit zeros on all transcription lines, Page 1, except Line 9-e. Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and edit the Unified/Applicable Credit amount for Date of Death (DOD) on Lines 9e and 11.

For estate and gift tax returns, process as incomplete using the best available information.

The statute begins with the earliest received date.

For returns completed in other than U.S. currency, process as filed. However, if corresponding for missing/incomplete items, include in the letter to resubmit in U.S. currency.

A new Schedule PC, Protective Claim for Refund, has been added (August 2012 revision) to Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return if Schedule PC is attached, copy the schedule and route to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G, unless return has no entries on page 1 and/or page 2. Leave the original with the return notating a copy was sent and continue processing.

investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the (IRC) include willful attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information.

If Criminal Investigation has stamped the return, do not send for further CI action.

For returns with refund claims do the following:

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Because of the repetitive nature of the Code & Edit function, Code & Edit Tax Examining technicians often recognize income tax return data which is outside of the norm for data found on similar returns for each income tax return type. If Code & Edit finds return characteristics not meeting Audit Code or Exam referral criteria it deems suspicious, Criminal Investigation is available to review the referral.

If a suspicious return is found, do the following:

Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious.

Attach Form 4227, Intra-SC Reject or Routing Slip to the copy.

Route the copy as shown in the table below

Cincinnati

Ogden

Kansas City

Mail Stop 83G, Criminal Investigation (CI)

Mail Stop 9001, Criminal Investigation (CI)

Mail Stop S 2 9000, Criminal Investigation (CI)

Edit an action trail "Copy to CI" or "CI Referral" or similar language in the lower left corner going vertically up the side of the return.

Continue processing the return.

If the return fits other criteria (e.g., Frivolous Argument), take proper action

The primary goal in identifying tax returns for Examination (Exam) is to promote the highest degree of voluntary compliance. Exam gives support and helps Submission Processing (SP) with any questionable return found during processing. Exam has a vast multitude of programs and tolerance criteria already found in several IRM sections. SP can refer any questionable return to Exam, unless prohibited by instructions currently found in several IRM’s.

Reprocess a return attempting to post or posted to the wrong account or module to the correct module.

Each re-entry return must have a Form 3893, Re-Entry Document Control, or Form 13596, Reprocessing Returns, attached. This will indicate to the examiner that special handling is required.

Form 3893, Re-Entry Document Control, is used to re-input documents that have not posted to an account or module.

Form 13596, Reprocessing Returns, is used to reprocess documents to the correct account or module that had previously posted to the wrong account or module.

Always leave a Form 3893, Re-Entry Documents, or Form 13596, Reprocessing Returns, on the front of the return. It must remain as a permanent part of the return.

Examine Form 3893, Re-Entry Documents, or Form 13596, Reprocessing Returns, to determine the action needed to make the return processable.

If the received date is two years and nine months or more after the return due date, refer to statute procedures before re-entering or reprocessing the return.

Form 3893, Re-Entry Document Control, is used to re-input a return that has not been posted to an account or module.

If more than one return is in the batch and only the top Form 3893, Re-Entry Document Control, has an entry in Box 1 (Alpha/Numeric block control number), edit all returns using current processing procedures and keep all returns clipped together.

Circle the CCC "G" if present.

Do not edit CCC "G" on an amended return. Do not send Letter 1382C Penalty Removal Request if a request for reasonable cause is attached.

If the return is not edited according to current processing procedures, circle any Action Codes, CCC’s, and any other edit marks that are no longer applicable. Re-edit according to current processing procedures.

If the return is edited according to current processing procedures, ensure that the information from Form 3893, Re-Entry Document Control, is edited on the return.

Form 3893

Action Taken

Box 14 (Remarks)

Ensure that the information is edited to the return.

Box 15 (Process as)

Circle out the green rocker and edit marks that may indicate a receipt of remittance.

Do not change any tax due amounts.

Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

If

Then

Improper perfection

Edit the same correction in red to the appropriate area.

Taxpayer error

Leave the entries as shown on the document.

An IRS received date must be present on all Re-Entry returns:

If

Then

The IRS received date is not present

Edit a received date to the middle of the return.

Multiple IRS received dates are present

Circle out all but the earliest date.

When additional information is still needed to make the return processable, prepare Form 3696, Re - Entry Document Control, approved Correspondence Action Sheet, or Form 4227 Intra-SC Reject or Routing Slip for the proper action (e.g., correspondence, and research).

When perfection is not possible, edit Action Code 640 on the return and attach Form 4227, Intra-SC Reject or Routing Slip, notating, "Perfection Not Possible" and leave in batch.

Form 13596, Reprocessing Returns, is used to reprocess a return to the correct account or module that had previously posted to the wrong account or module.

Circle CCC "G" if present.

Do not edit CCC "G" on an Amended returns.

Do not send Letter 1382C, Penalty Removal Request Incomplete, if a request for reasonable cause is attached.

If the return was not edited according to current processing procedures, circle out any action codes, CCC’s and any other edit marks that are no longer applicable. Re-edit according to current processing procedures.

If the return was edited according to current processing procedures, ensure that the information from Form 13596, Reprocessing Returns, is edited on the return.

Form 13596

Action Taken

TIN correction

Edit correct TIN on return.

Tax period correction

Edit correct tax period ended on return.

Reasonable cause

Edit appropriate CCC.

Edit CCC "R" if the "FTF" box is checked.

Edit CCC "D" if the "FTP" box is checked.

Examine returns that have any color other than red edited in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

If

Then

Improper perfection

Edit the same correction in red to the appropriate area.

Taxpayer error

Leave the entries as shown on the document.

An IRS received date must be present on all reprocessed returns.

If

Then

The IRS received date is not present

Edit a received date to the middle of the return.

Multiple IRS received dates are present

Circle out all but the earliest date.

Circle out the green rocker and edit marks that may indicate a receipt of remittance.

When additional information is still needed to make the return processable, prepare Form 3696, Correspondence Action Sheet, or Form 4227, Intra-SC Reject or Routing Slip for the appropriate action (e.g., correspondence, and research).

Compliance functions (Collections and Examination) secure returns from the taxpayer and also prepare returns if the taxpayer does not provide them.

Compliance notates:

Prepared tax returns with "6020(b)" or "SFR" (Substitute for Return).

Secured tax returns with "TC59X" or "ICS" or "process as Original" with a Form 13133, Expedite Processing Cycle, attached with the "Delinquent Return" box checked

If "RD" (Return Delinquency) is notated on the front of the return and not circled, remove from the batch and route to Collections.

When the taxpayer doesn’t file a required return, (IRC) Section 6020(b) of the Internal Revenue Code is the authority for the IRS to prepare the return.

These returns are identified by the notation "PREPARED AND SIGNED UNDER THE AUTHORITY OF SECTION 6020(b) OF THE INTERNAL REVENUE CODE" which is located in the center bottom of Page 1 of the return.

Returns must have an IRS Received Date. If missing, follow the normal procedures for editing the IRS Received Date. IRM 3.11.106.13, Received Date.

Compliance Function representatives must sign returns. If not signed, route to Compliance using Form 4227, Intra-SC Reject or Routing Slip.

Accept revenue officer (RO) typed or electronic signatures as valid signatures on the return.

≡ ≡ ≡ ≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡

Do not correspond with the taxpayer for Unprocessables conditions. If the return is unprocessables, edit CCC "3" and continue processing.

Edit CCC "W" if the IRS received date is more than two years and nine months after the return due date. Do not route the return to Statute Control.

These returns are identified by the notations "TC 59X" or "ICS" .

Do not edit CCC "G" on these returns.

Use approved Correspondence Action Sheet to correspond for conditions that are unprocessables (e.g., missing signatures, and missing schedules).

Edit CCC "W" if the IRS received date is more than two years and nine months after the return due date. Do not route the return to Statute Control.

If there is indication penalties require suppression, edit the appropriate CCC(s).

These returns are identified by the notation "SUBSTITUTE FOR RETURN" or "SFR" on Page 1.

Return must have an IRS received date. If no IRS received date is present, follow the normal procedures for editing the received date.

Do not send the return back or correspond with the taxpayer for unprocessables conditions. If the return is unprocessables, edit CCC "3" and continue processing.

If Form 13133, Expedite Processing Cycle, is attached, edit the CCC’s that are checked on the form.

Edit CCC "W" if the IRS received date is more than two years and nine months after the return due date. Do not route the return to Statute Control.

These returns are identified by the notation "Process as Original" on Page 1 of the return and a Form 13133, Expedite Processing Cycle, attached with the "Delinquent Return" box checked.

Do not edit CCC "G" on these returns.

Use approved Correspondence Action Sheet to correspond for conditions that are unprocessables (e.g., missing signatures, and missing schedules).

If Form 13133, Expedite Processing Cycle, is attached, edit the CCC’s that are checked on the form.

Edit CCC "W" if the IRS received date is more than two years and nine months after the return due date. Do not route to Statute Control.

The following information pertains to obsolete returns:

If

Then

Taxpayer uses an obsolete form as a current year return or files on an improper form, but computer program has been changed to accommodate current revision of form (e.g., Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, for tax periods prior to 7701), and line entries differ from the current year form

Renumber form to current year revision, if possible.

Copy data to be input to the BMF on current year return.

Staple current year return with necessary code and edit markings to the face of taxpayer's prior year return.

Use entity data on taxpayer's return, if possible, by cutting off or folding entity portion of the dummy return before stapling to taxpayer's return.

NEVER destroy, mutilate, obliterate, or throw away any part or portion of return submitted by taxpayer.

Document Perfection identifies refunds in jeopardy and requests manual refunds,

Expeditious processing of refund returns is critical if the 45 - day period is about to expire.

If

Then

A refund return is batched in a non-refund batch

Completely edit the return.

Pull the return from the non-refund batch and merge into a refund batch using local procedures.

Follow the instructions below when the processing date is more than 20 days after the IRS received date or the return due date(whichever is later) or the refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

The processing date is more than 20 days after IRS received date or the return due date (whichever is later) and the refund amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Refund in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods.

Unnumbered Returns:

Pull the return from the batch.

Code and edit the return as completely as possible.

Edit Action Code 341 or CCC "U" (whichever is applicable). IRM 3.11.106.4.2, IRM 3.11.106.4.3

For returns with CCC "U" , attach Form 4227, Intra-SC Reject or Routing Slip and check the "Reject Correction" box.

Give the return to the manager for expedite processing.

Numbered Returns:

Code and edit the return as completely as possible.

Edit Action Code 341 (or CCC "U" as applicable) and leave in batch.

For returns with CCC "U" , attach Form 4227, Intra-SC Reject or, Routing Slip and check the "Reject Correction" box.

The refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Refund in this instruction means only the amount requested to be refunded to the taxpayer not overpayments transferred to other periods.

Unnumbered Returns:

Pull the return from the batch.

Code and edit the return as completely as possible.

Edit Action Code 341 or CCC "U" (whichever is applicable).

For returns with CCC "U" , attach Form 4227, Intra-SC Reject or Routing Slip and check the "Reject Correction" box.

Place the return in the CI box.

When cleared, expedite processing.

Numbered Returns:

Code and edit the return as completely as possible.

Edit Action Code 331 (or CCC "U" as applicable)

Attach Form 4227, Intra-SC Reject or Routing Slip to the return, edit Action Code 341 on

For returns with CCC "U" , attach Form 4227, Intra-SC Reject or Routing Slip and check the "Reject Correction" box.

The following information pertains to penalties other than delinquency to pay:

Type of Penalty

What to Do

Penalty other than delinquency or failure to pay is present (e.g., fraud, negligence, etc.)

Prepare Form 3465, Adjustment Request, requesting assessment of penalty.

If return remittance includes penalty amount, request on Form 3465, Adjustment Request, requesting assessment of penalty that this portion of remittance be applied to assessment.

Note on return Form 3465, Adjustment Request, requesting assessment of penalty prepared and route Form 3465, Adjustment Request, requesting assessment of penalty to Adjustment function.

(See Figure 3.11.106-2, Form 3465 Adjustment Request, requesting assessment of penalty.)

Penalties and interest are imposed by Service Enforcement Officers and reasonable cause is given and accepted per documents attached

Edit necessary CCC in condition code area of return (as determined by Exam).

Figure 3.11.106-2

Please click here for the text description of the image.

The following information pertains to penalty and interest.

Edit Code "1" when the return reflects a precomputed delinquency penalty and/or interest and the return is received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. If only interest is shown, edit CCC "R" and Penalty and Interest (P&I) Code "1" . If only penalty is shown, edit P&I Code "1" .

If

Then

The return has precomputed penalty or interest, but no IRS received date

Determine received date and edit it. See IRM 3.11.106.13, Received Date.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Edit P&I Code "1" .

A Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions; Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations; and Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States,

Edit the P&I Code in the upper right margin. See Figure 3.11.106-3, Penalty and Interest Code.

Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return and Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States,

Edit the P&I Code between Lines 2 and 3 of the Tax Computation Section.

A precomputed penalty, other than delinquency or failure to pay (i.e., (IRC) Section 6660 penalty) is shown on the return

Prepare Form 3465, Adjustment Request.

Delete penalty and interest from the total and edit the Balance Due to the left of the original entry. Otherwise, accept taxpayer's entry.

Figure 3.11.106-3

Please click here for the text description of the image.

In addition to TIA declaration on Page 2 of Form 706, a valid Form 8821, Tax Information Authorization or Form 2848, Power of Attorney and Declaration of Representative, may be attached to Form 706, United States Estate (and Generation -Skipping Transfer) Tax Return. Detach and route Form 8821 or Form 2848. A valid Form 8821, or Form 2848 is attached and is for the same representative listed on the Form 706, will take precedence over a TIA.

A valid Form 8821, Tax Information Authorization or Form 2848, Power of Attorney and Declaration of Representative, must contain: an IRS received date, taxpayer's name, taxpayer identification number (TIN), signature and date.

The following information pertains to TIA for Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, only:

If

Then

If a valid Form 2848 or a valid Form 8821 is attached and is the same representative listed on the Form 706

Form 2848 or Form 8821 takes precedence over TIAs

A TIA declaration on Page 2 of Form 706, United States Estate (and Generation -Skipping Transfer) Tax Return, is signed by someone other than the Representative

Edit "TIA" on Form 706, United States Estate (and Generation-Skipping Transfer Tax Return, in the bottom margin and also in the top margin, left side, of Page 1.

Check Form 706 for TIA information and flag attachment pages.

Place return behind the batch when finished.

Clerks will copy and fax Form 706, Page 1, Page 2, TIAs, and attachment pages. See the fax information table below.

If the Decedent lived (Part I, Box 3a) in

Then Fax Using the Number Below

Alabama, Arkansas, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, or West Virginia.

855-214-7519

Alaska, Arizona, California, Colorado, Hawaii, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wisconsin, or Wyoming

855-214-7522

All APO and FPO addresses, American Samoa, the Commonwealth of Northern Mariana Islands, Guam, the US Virgin Islands, Puerto Rico, a foreign country or otherwise outside the US.

855-772-3156

The following subsections contain information pertaining to ERS coding.

The Error Resolution System (ERS) replaced the input perfection procedures for manual corrections to paper Error Register.

ERS displays data on terminal display screens with corrections made and integrity verified in a real time environment.

The Document Perfection tax examiner will have the first opportunity to identify a record having a problem which requires correspondence, research or other action in order to make the return processable.

Action Codes are used to indicate whether correspondence, research, or some other action is needed. The Action Code sets the suspense period for the return and places the return in the workable or unworkable suspense inventory.

When necessary, assign a 3 - digit action code.

Action codes are valid on Form 706, United States Estate (and Generation -Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Form 709-NA, United States Gift (and Generation Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States. Any other returns are processed through a manual correction system. Use CCC "U" on these returns when action such as correspondence is needed.

Edit Action Codes in the bottom left margin of the return for Form 706, Form 709, and Form 709-NA. See Figure 3.11.106-4, Action Code.

Figure 3.11.106-4

Please click here for the text description of the image.

Edit Action Codes for Form 706-NA in the bottom center margin of the return.

Assign Action Codes in the following priority order:

Action Code 310 (Statute Control)

Action Code 320 (Entity Control)

Action Code 4XX

Action Code 6XX

Action Code 3XX

Action Code 2XX (Correspondence)

Use the following table if more than one Action Code is needed:

If

Then

Action Codes include 211 First Correspondence (Missing Information and/or Signature Refund Returns), 215, First International Correspondence (Missing Information and/or Signature Refund Returns), 216 Second International Correspondence, 225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) or 226 International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) and Action Code 341 Manual Refund.

Edit the Action Code 211, 215, 225 or 226 on the Form 706, Form 706-NA, Form 709, and Form 709-NA.

Edit Action Code 341 on the Form 4227, Intra-SC Reject or Routing Slip.

Action Codes have the same priority,

Edit the Action Code with the shorter suspense period on the Form 706, Form 706-NA, Form 709, and Form 709-NA.

Edit the second Action Code on the Form 4227, Intra-SC Reject or Routing Slip.

See IRM 3.11.106.9.2 (6), Action Codes for suspense periods.

Action Codes have different priorities,

Edit the Action Code with the higher priority on the Form 706, Form 706-NA, Form 709, and Form 709-NA.

Use Action Code 211, 215, 225 or 226 before Action Code 341 to ensure the return is complete before a manual refund is issued.

Edit the second Action Code on the Form 4227, Intra-SC Reject or Routing Slip.

Edit the following Action Code when a return cannot be perfected:

Action Code

Description

Action Codes include 211 First Correspondence (Missing Information and/or Signature Refund Returns), 215, First International Correspondence (Missing Information and/or Signature Refund Returns),

Return is illegible, incomplete, or contradictory and therefore cannot be processed.

The taxpayer notates on the return or attachment that they are reporting tax for more than one tax period or for more than one type of tax.

225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns)

Unsigned return (only issue for correspondence).

Signature is not original or has been photocopied.

226 International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns)

Unsigned foreign (international) return (only issue for correspondence).

Signature is not original or has been photocopied.

480 (Early Filed-Suspense)

Early filed return. See IRM 3.11.106.16.1, Tax Period - Early Filed Returns.

610 (Renumbered Non - Remittance) or 611 (Renumbered with Remittance)

Mis-batched return found on the following: Form 706, Form 706-NA, Form 709, or Form 709-NA .

640 (Void)

To delete the assigned Document Locator Number (DLN) on the return (e.g., Re-entry returns).

Continue perfecting the return after editing the Action Codes.

Valid Action Codes are listed below:

Action Code

Description

Workday Suspense Period

211

First Correspondence (Missing Information and/or Signature Refund Returns)

40

212

Second Correspondence

25

215

First International Correspondence (Missing Information and/or Signature Refund Returns)

45

216

Second International Correspondence

45

225

Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns)

40

226

International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns)

40

310

Statute Control

10

320

Entity Control

10

331

Frivolous Review

3

341

Manual Refund

10

342

Credit Verification

10

343

Black Liquor

10

352

Name Research

3

360

Other In House Research

10

410

Assistance Needed/Special Handling

3

420

Manager's Suspense

5

480

Early Filed Suspense

150

610

Renumber - Non-remit

0

611

Renumber - Remit

0

640

Void

0

650

International

0

The following information pertains to numbered returns:

If

Then

A numbered return cannot be perfected

Edit Action Code 211.

This code applies only to numbered returns Form 706, Form 706-NA, Form 709, and Form 709-NA, and will cause a record to print on the Service Center New Suspense List.

However, continue to perfect the document to the extent possible as though it did not contain an Action Code.

Some of the conditions in which Form 706, Form 706-NA, Form 709, and Form 709-NA would be assigned an action code. See IRM 3.11.106.9.3.1, AC 610/611, and IRM 3.11.106.9.3.2, AC 620.

The document has been mis-blocked (the DLN is not the proper one to be assigned to the document), but it is an ADP document.

AC 610 - Non-Remittance

AC 611 - Remittance

The document is for a tax period prior to the beginning of ADP Processing for that type of document. Also, if the document is of a type not prescribed to be input to the ADP System.

The Action Codes used throughout the handbook are the codes to be edited for those specific situations. The following is a list of codes that are valid for Document Perfection use and could be used for other situations that could arise during processing. The codes, their meanings, suspense periods, and function are as follows:

• CE = Code and Edit, EC = Error Correction, S = Suspense, GEN = Computer Generated.

Action Code

Description

Workday Suspense Period

Function *

211

First Correspondence (Missing Information and/or Signature Refund Returns)

40

CE, EC, S

212

Second Taxpayer Correspondence

25

CE, EC, S

213

Correspondence to Other than Taxpayer

40

CE, EC

215

First International Correspondence (Missing Information and/or Signature Refund Returns)

45

CE, EC, S

216

Second International Correspondence

45

CE, EC,S

225

Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns)

40

CE, EC, S

226

International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns)

45

CE, EC, S

310

Statute Control

10

CE, EC, S

320

Entity Control

10

CE, EC, S

331

Frivolous Review

3

CE, EC

332

Questionable Refund Detection Team (QRDT) Review

3

CE, EC

333

Prompt Audit

10

CE, EC

334

Joint Committee

10

CE, EC, S

335

Frivolous Case

10

CE, EC, S

336

QRDT

10

CE, EC, S

337

Other Criminal Investigation Division (CID)

10

CE, EC, S

341

Manual Refund

10

CE, EC, S

342

Credit Verification

10

CE, EC, S

343

Other Accounting

10

CE, EC, S

351

TIN Research

0

EC, S

352

Name Research

3

CE, EC, S

353

Address Research

3

CE, EC, S

354

Filing Requirements Research

3

CE, EC, S

355

Other Research

3

CE, EC, S

360

Other In House Research

10

CE, EC, S

370

Examination

10

CE, EC, S

410

Assistance Needed/Special Handling

3

CE, EC, S

420

Management Suspense A

5

CE, EC, S

430

Management Suspense B

10

CE, EC, S

440

Management Suspense C

15

CE, EC, S

450

Management Suspense D

20

CE, EC, S

460

Management Suspense E

25

CE, EC, S

480

Early Filed Suspense

150

CE, EC, S

510

Missing Document

0

CE

511

Missing Document 1st Suspense

25

EC, S

512

Missing Document 2nd Suspense

20

S

513

Missing Document 3rd Suspense

20

S

515

Missing Document Short Term

5

EC, S

550

Magnetic Tape Attachment

3

CE

551

Magnetic Tape Inconsistent Data

3

CE

610

Renumber

0

CE, EC

611

Remittance Renumber

0

S

620

NMF/Non-ADP

0

CE, EC, S

630

Re-input

0

EC

640

Void

0

CE, EC, S

650

International

0

CE, EC

660

Data Control Delete (Tape Edit Processing (TEP) Delete)

0

GEN

670

Deleted Missing Document

0

GEN

700

Duplicate Block

0

GEN

711

Duplicate Document DLN from CE

NA

GEN

712

Duplicate Document DLN from EC

NA

GEN

713

Duplicate Document DLN from Unpostables

NA

GEN

714

Duplicate Document DLN from Unworkable Suspense

NA

GEN

715

Duplicate Document DLN from Workable Suspense

NA

GEN

900

Unpostable Record

0

GEN

Computer Condition Codes (CCC) identify special conditions or computations for the computer. CCC’s post to the Master File.

CCC’s are edited in the upper left corner of the return for all Estate and Gift Tax (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Form 709-NA United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.

The following common CCC’s will be used on all documents input to the BMF:

Code

Explanation

A

2010 (ONLY) revision (with a 2010 tax period) of Form 709, United States Gift (and Generation Skipping Transfer) Tax Return.

B

Victims of Terrorism Relief

D

Reasonable Cause For Failure to Pay Taxes Timely

F

Final Return

G

Amended, superseding, duplicate, tentative, revised, substitute

L

Treaty based positions. (IRC) Section 6114 written on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate(and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.

O

Form 3753, Manual Refund Posting Voucher and Letter 5792, Request for IDRS generated record. Module Freeze - indicates a manual refund was issued

R

Reasonable cause for delinquency

U

Unprocessables document

W

Indicates the return has been cleared by Statute Control

X

Credit freeze

Y

Combat Zone Return, early filed return, Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, returns under Revenue Ruling 71-132, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, returns filed by non-residents who are not citizens,

3

No reply to correspondence

7

Reasonable Cause Statement Denied

Since all CCC’s are not valid for each (and every) Form 706, Tax Returns Series, Form 709, tax return series, consult the following subsections, as appropriate, before editing a code for the specific (type of) return being processed. Tax examiners code various documents for input to the BMF.

Edit CCC "A" to identify 2010 (ONLY) revisions (with a 2010 tax period) of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, if there are any dollar amount entries (other than zero) anywhere on Page 2, Schedule A, Parts II or III , or on Page 4, Schedule C (other than Exemption amounts (only) shown in Part II, Lines 1, 3, and/or 8).

DO NOT edit CCC "A" if return is other than 2010 revision of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

Edit this code to identify Form 706, United States Estate (and Generation -Skipping Transfer) Tax Return, containing references or indications the return was for the estate of a victim killed in a terrorist attack.

If a Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, return is annotated at the top of Page 1 of the return "(IRC) Section 2201" or has any indications the return is the result of legislation impacting victims of terrorist attacks (April 19, 1995 - Oklahoma City bombing; September 11, 2001 - World Trade Center bombing; or references to deaths resulting from anthrax that occurred on or after September 11, 2001, and before January 1, 2002):

Edit CCC "B" .

A special tax rate schedule will apply to victims of terrorist attacks. ERS/Rejects will verify the appropriate tax computation.

Apply all other credits against the estate tax (including unified/applicable credit) to these returns.

We will no longer code CCC "D" if the taxpayer requests abatement for "Failing to Pay Taxes Timely" when the return is submitted, see exceptions below.

In the case of a disaster, specific instructions for the use of this code will be provided at that time.

Exceptions for editing a CCC D: Secured internally prepared returns. For secured returns (e.g., returns notated with Process as Original with an attached Form 13133 or Prepared returns (e.g., returns notated 6020(b) or SFR (Substitute for Return), edit the applicable CCC as indicated on the return and/or attached form. Send a Letter 1382C (paragraphs S and 9) and edit 1382C sent in the bottom left margin going up.

Taxpayer instructions tell them to mail reasonable cause/abatement statements to Estate and Gift.

The following instructions apply for handling of Form 706, and Form 709 series returns:

Make a photocopy of Pages 1 and 2 of the return.

Detach the taxpayer's statement from the return.

Attach the photocopy of the return and the taxpayer's statement to Form 4227, Intra-SC Reject or Routing Slip and route to the Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G.

Continue normal processing of the (original) return.

If a Cincinnati Centralized Specialty Tax Campus Estate and Gift representative visits Code and Edit for an on-site review for determination(s) of reasonable cause, proceed as follows:

Edit the appropriate CCC on the return per Functional Security Officer (FSO) instructions.

Continue normal processing of the return.

Edit CCC "F" when the Final Return Box is checked or there in another indication the taxpayer is not liable for future returns. Notations could include but are not limited to:

Final

Deceased

Out-of-Business

Liquidation

Exempt under (IRC) Section 501(c)(3)

Dissolved

"CCC "F" on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, indicates this is the last return of a donor who died."

See IRM 3.11.106.10.5.1, Amended Returns.

"Form 706, tax return series and Form 709 tax return series contain "amended boxes" . However, the return might include some written indication by the taxpayer (or their representatives) that there has been a change since the original return was submitted. Examples of this are such words as "Supplemental" , "Duplicate" , "Additional" , or any other positive indication that the taxpayer has filed previously."

There has been an Amended Box added to the Form 709 (Page 1 Part I Line 15, and Form 709-NA Page 1, Part I Line 23b).

Examine the return for attachments. Do not separate any related attachments from the return that the taxpayer has submitted, to explain the reason for the amended return. Detach any unrelated documents and route them to the correct function using Form 4227, Intra-SC Reject or Routing Slip. Edit Action Trail on the return, see, IRM 3.11.106.29.16, Form 709-NA, attached to Form 709, or Form 709, is attached to Form 709-NA.

"For Form 706, Form 709 series returns, do not detach any amended related attachments."

There is an indication the return is amended and:

If

Then

"TC 59X" or "ICS" was entered on the return by Compliance Services

Do not edit CCC "G" . Process the return as an original.

The return is stamped "Delinquent Original Cleared for Processing" by Statute

Do not edit CCC "G" . Process the return as an original.

Form 3893, Re-Entry Document Control or Form 13596, Reprocessing Returns is attached

Do not edit CCC "G" .

See IRM 3.11.106.4.10.2, Form 13596 Reprocessing Returns.

See IRM 3.11.106.4.10.1 when processing a 3893.

None of the above are present

Edit CCC "G" . No other codes may be used with CCC "G" except CCC "U" , "W" , "3" and/or ERS Action Code.

"Form 706, series returns, and Form 709, series returns: Receipt and Control will sort non-remittance amended Form 706, series returns, and Form 709, series tax returns, and forward returns with a domestic or foreign (international) address to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G. The following instructions pertain to Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-GS(D), United States Additional Estate Tax Return Under Section 2057, Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, Form 706-QDT, United States Estate Tax for Qualified Trusts, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return and Form 709-NA, United States Gift (and Generation Skipping Transfer) Tax Return of Non Resident Not a Citizen of the United States."

If

And

Then

Return (without remittance) is marked "Amended" , "Revised" , "Adjusted" , "Subsequent" , "Substitute" , "Corrected" , or Form 709Line 15, is checked, Form 709-NAbox 22b, is checked, etc.

Consider the return as amended.

Route to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G.

Return (with remittance) is marked "Amended" , "Revised" , "Adjusted" , "Subsequent" , "Substitute" , "Corrected" , Form 709-NAbox 15, is checked, Form 709-NAbox 22b, is checked, etc.

Unnumbered return with domestic or foreign (international) address

Consider the return as amended.

Route to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G.

Hand carry return and remittance to supervisor.

Return (with remittance) is marked "Amended" , "Revised" , "Adjusted" , "Subsequent" , "Substitute" , "Corrected" , Form 709Line 15, is checked, Form 709-NAbox 22b, is checked etc.

Numbered return with domestic or foreign (international) address

Route to Cincinnati Centralized Specialty Tax, Estate and Gift Mail Stop 824G.

Use Action Code 370 (Exam).

Leave the return in the batch.

The following data must be edited on all amended returns:

Name Control

Social Security Number (SSN)

Tax Period (or Date of Death)

CCC "G"

IRS received date

Signature

Follow instructions above and if return is being routed to Cincinnati Centralized Specialty Tax, Estate and Gift Mail Stop 824G, no signature is required.

Edit CCC "L" when the taxpayer has written "(IRC) Section 6114" on the top of the return or Form 8833, Treaty - Based Return Position Disclosure Under (IRC) Section 6114 or 7701(b), is attached to the return.

"This applies only to Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States."

CCC "O" is edited when a Pre-Settlement Manual Refund will be made and a Form 3753, Manual Refund Posting Voucher; Form 5792, Request for IDRS Generated Refund (IGR); or Form 12857, Refund Transfer Posting Voucher, is attached. Verify that the Name Control, SSN, and Tax Period on the return is the same as the data on the form.

When issuing CCC "O" :

Research to determine if TC 840 (Manual Refund Transaction) has posted.

If TC 840 has posted, edit CCC "O" and process as usual.

If TC 840 has not posted, edit Action Code 341 to issue a manual refund.

If

Then

A completed Form 3753, Manual Refund Post Voucher; Form 5792, Request for IDRS Generated Refund (IGR) or Form 12857, Refund Transfer Posting Voucher, is attached to the return. (These indicate that a pre-settlement manual refund was made.)

Edit CCC "O" .

(The freeze is released by posting Transaction Code "840" .)

We will no longer code CCC "R" if the taxpayer requests abatement for failing to timely file when the return is submitted, see exceptions below.

In the case of a disaster, specific instructions for the use of this code will be provided at that time.

See IRM 3.11.106.18.3.2 if a Form 706, is received with an original Form 709 or Form 709-NA with an approved extension of time to file. See IRM 3.11.106.18.3.2, for Extension - Form 706, with Form 709, or Form 709-NA attachment.

Exceptions for editing a CCC R: Secured internally prepared returns. For secured returns (e.g., returns notated with Process as Original with an attached Form 13133 or Prepared returns (e.g., returns notated 6020(b) or SFR (Substitute for Return), edit the applicable CCC as indicated on the return and/or attached form. Send a Letter 1382C (paragraphs S and 9) and edit 1382C sent in the bottom left margin going up.

Edit CCC "U" on any return that has an unprocessables condition. This applies only to the Form 706-GS(D), Generation-Skipping Tax Return for Distribution, and Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations.

All returns will receive CCC "U" except Form 706, Form 706-NA, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return and Form 709-NA, United States Gift (and Generation Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States

For Form 706, Form 706-NA, Form 709, or Form 709-NA, use the appropriate Action Code for unprocessables conditions.

CCC "W" is used when the return has been cleared by Statute Control. See IRM 3.11.106.10.10.1, Statute Returns.

Any return with an IRS received date that is two years and nine months or more after the return due date is a potential statute control return.

A Form 709 or Form 709-NA return that is a prior year original and filed two years and nine months or more after the return due date, are considered filed late.

Route Statute returns to the Statute Control Unit daily or more often if needed.

If any of the conditions listed below are present, do not route to Statute Control Unit for clearance. Instead, edit a CCC "W" and continue processing.

Compliance (IRC) Section 6020(b) returns

Secured by Examination/Collections secured by TEGE, secured by TEGE Employee Plan (EP), Exam.

A return with TC 59X or ICS notated on the face of the return.

Returns that are substitute returns prepared by Exam (SFR) in top margin of the return.

The return has a stamp that indicates a previous clearance by Statute Control within the last ninety days.

Return is a 2021 and prior year original. Due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures to bypass AM statute clearance and be processed. In addition, any 2021 and prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90 - Calendar day statute stamp has expired.

If any of the following computer paragraphs (CP’s) of letters are attached to a BMF return do not route to Statute Control Unit for clearance. Edit CCC "W" if it is determined that the return should be processed. See IRM 3.11.106.2.8, Routing Guide for Attachments, for more information

CP 259, Master File Generated 1st TDI Notice

CP 959, Master File Generated 1st TDI Notice (Spanish version)

CP 528, Final Notice - Return Delinquency

Letter 112-C, Payment/Overpayment/Credit Applied; No Record of Return Filed

Letter 282-C, Return Not Received: Copy Requested/Received

If a return is received with a Form 12412, Operations Assistance Request (OAR), from TAS and is a potential statute control return but is not stamped "Cleared by Statute" , give it to the lead. The lead will contact the TAS employee listed on the OAR for rejection of the OAR and then send back to TAS for clearance by the Statute Unit.

If the return is within 90 days of the statute expiration date, advise the TAS employee of such and route the return directly to statute for clearance.

Statute returns are unprocessables until they are cleared by Statute Control:

If

Then

The return is numbered

Edit Action Code 310 on the return (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return and Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.

"For all other forms (including, but not limited to Form 706-A, United States Additional Estate Tax Return, Form 706-D, United States Additional Estate Tax Return - Under Code Section 2057, Form 706-QDT, United States Estate Tax Return for Qualified Trusts, Form 706-GS(D), United States Additional Estate Tax Return - Under Code Section 2057 and Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, "

"edit CCC "U" on the return."

Leave the return in the batch and continue processing.

Edit Action Code 211, 215, 225, or 226 on Form 706, Form 706-NA, Form 709, and Form 709-NA, Use CCC "U" for all other returns.

The return is unnumbered

Do not continue processing.

Pull the return from the batch.

Attach Form 4227, Intra-Sc Reject or Routing Slip and route to Statute Control Unit.

Edit CCC "W" if the return was cleared by Statute Control Unit. Statute will stamp or indicate clearance on the front of the return.

Statute stamps "No Statue Issue" or shows clearance on the front of the return. Follow the table below to determine if a CCC "W" is needed:

If

And

Then

The return received date is two years and nine months or more after the return due date

The return is stamped, “No Statute issue”, "Statute N/A" , or a similar statement indicating there is no statute issue

Edit a CCC "W" .

The return received date is less than two years and nine months from the return due date

The return is stamped, “No Statute issue”, "Statute N/A" , or a similar statement indicating there is no statute issue

Do not edit a CCC "W" .

Edit CCC "X" :

If

Then

Taxpayer has requested part of the refund be applied to another account

Edit CCC "X" .

Photocopy Pages 1 and 2 of the return.

Prepare Form 3465, Adjustments Request, Prepared on original Return.

Attach photocopy and forward to Accounts Management.

Notate "Form-3465" , Adjustment Request, Prepared on original Return.

There is "no reply" to a correspondence and a refund is due

Edit CCC "3" as well.

There is no reply to correspondence for signature and a refund is due

Edit CCC 3 and CCC X as well.

The CCC "Y" is used by different programs to designate a "yield" condition (and is used by other BMF programs to represent a change in the accounting period). However, for the Form 706, Form 706-NA, Form 709, or Form 709-NA, CCC "Y" designates a yield condition for 4 entirely different reasons.

Edit a CCC "Y" when any of the following conditions apply:

It is an "Assistance Needed/Special Handling" return. (2011 Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return with a Date of Death in 2011 only.)

It is a "Combat Zone" return. (Form 706 series only.)

It is an "Early Filed" return. (Form 709, or Form 709-NA). See (4) below.

It is a "Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return." from a Nonresident alien taxpayer.

If the TS Submission Processing Liaison for TAS issues walks a return through Code and Edit; then, in addition to normal editing: (1) Edit CCC "O" to freeze the refund and (2) Edit CCC "Y" to route the return to ERS. See IRM 3.11.106.2.4, Taxpayer Advocate Service (TAS).

The following information pertains to Combat Zone returns:

If

Then

A decedent is killed in action or died as a result of wounds, disease or injury received while serving in a Combat Zone

Edit CCC "Y" .

The decedent is entitled to lower estate tax per (IRC) Section 2201 and 2011(d).

The tentative tax equals 125% of the maximum allowable state death tax credit.

All other credits against estate tax (including unified/applicable credit) apply to these returns.

The following information pertains to "Early Filed remittance returns" :

If

Then

A gift was given in 2024 and the return is filed in 2024 but the return is not due until April 15, 2025)

Edit CCC "Y" .

The return cannot be processed until after December 31, 2022; post it as the month actually received. For example, if the return is received in January 2023, post it as 2301, etc.

This applies to remittance returns. See Figure 3.11.106-5, Computer Command Code.

Figure 3.11.106-5

Please click here for the text description of the image.

Edit a CCC "Y" on Form 709, Form 709-NA early filed returns and Amended returns.

Edit CCC "3" when either the taxpayer fails to respond to correspondence or when correspondence is returned undeliverable. It will suppress credit interest from being generated.

The Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G, will make all determinations of reasonable cause for all Form 706 series returns and Form 709 series returns.

If a Compliance Services representative visits Code and Edit for an onsite review for determination(s) of reasonable cause, proceed as follows:

Edit the appropriate CCC on the return per Compliance Services instructions.

Continue normal processing of the return.

Unless Examination has determined that an on - site visit by Compliance Services personnel is needed, there will be no need to determine whether a CCC "7" is appropriate or not.

All Taxpayer Correspondence include the following :

All written communication from a taxpayer or their representative, excluding tax returns, whether solicited or unsolicited.

Written communication which requests information, including requests attached to tax return.

Written communication, including annotated notice responses, that provide additional information or dispute a notice.

A written referral resulting from taxpayer telephone contact or walk-in inquiry (although not included in the definition of taxpayer correspondence) should be handled in adherence to the guidelines contained in IRM 1.10.1, The IRS Correspondence Manual.

Timeliness guidelines for acknowledging and working taxpayer correspondence as outlined in IRM 3.30.123, Processing Timeliness Cycles, Criteria and Critical Dates, must be followed.

Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessables.

Do not correspond on returns prepared by Collections, (IRC) Section 6020(b) or by Examination "Substitute for Return" SFR

If the return is incomplete and appears to be a duplicate, give the return to the lead. The lead research for a Transaction Code (TC) 150 and any other information necessary to determine if the return should continue to be processed. If research determines a duplicate return, IRM 3.11.106.10.5.1, Amended Returns, and continue processing. A duplicate return could include any of the following:

A one page return, with or without a signature.

Incomplete returns indicating "Payment Only"

Incomplete returns indicating they have previously E-filed.

This list is not all inclusive. Tax examiners may see other unusual documents not addressed in this subsection or in other areas of the IRM.

Examine the return for all unprocessable conditions before initiating correspondence:

If

And

Then

The return needs correspondence

requires a response

Complete an approved Correspondence Action Sheet indicating the letter number (e.g., Letter 180C, Gift Tax Return Incomplete for Processing Form 709, 709-NA and Form 709-A, Letter 3463C, Missing Information Request to Process Business Returns with appropriate paragraphs.

Some paragraphs may require fill-ins to enter, such as tax period, form number, Document Locator Number (DLN), etc.

Attach the approved correspondence action sheet to the front of the return below the Entity area.

Edit Action Code 211(Missing Information and/or Signature Refund Returns)225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns).IRM 3.11.106.14 (Signature Only) on Form 706, Form 706-NA, Form 709, and Form 709-NA.

Use CCC "U" for Form -706 GS(D).

Finish editing the return and leave the return in the batch.

Return needs correspondence

does not require a response

Complete an approved, correspondence action sheet or other approved Correspondence Action Sheet indicating the letter number, MFT, and the appropriate paragraphs.

Some paragraphs may require fill-ins to edit, such as tax period, form number, DLN, etc.

Photocopy and attach an approved, correspondence action sheet, or other approved Correspondence Action Sheet below the Entity areas on the front of the return. Be sure the name and address show clearly above the Form 3696, Correspondence Action Sheet or other approved Correspondence Action Sheet.

Forward the copy to the Correspondence area.

Edit an Action Trail (e.g., "Letter 180C SENT" ) in the lower left corner going vertically up the side of the return.

Finish editing the return and leave in batch.

There are more campus exclusive letters. They are for processing specific forms or conditions. Go to the lead or manager for copies of these letters.

The following information pertains to TC 59X:

If

Then

An unnumbered return is withdrawn from the workflow for correspondence

Input through IDRS, (no later than 3 weeks before the delinquency check) a fact of filing to alter the normal delinquency check.

Annotate the transaction and closing codes input in the middle-left margin of the return.

Using Command Code FRM49 BB, the codes are as follows:

TC 599-17 Unprocessables Tax Return.

TC 599-18 Return in progress on or after the program completion date.

The return is being sent back to the taxpayer

The above instructions do not apply. TC 599 is not necessary.

Taxpayer may send tax information in via fax as part of return perfection even when submitting signature. In circumstances where contact with the taxpayer has been documented, fax signatures are acceptable.

Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to decide which method of contact to use.

Indicate the fax paragraph on the approved Correspondence Action Sheet. To inform taxpayer of the fax options

Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3, Operational Guidelines Overview. Also, before leaving any messages on a taxpayer's answering machine, review IRM 21.3.8.4.1.6, Leaving Information on Answering Machines/Voice. Fax procedures contained in IRM 10.5.1.6.9.4, Faxing must be reviewed prior to faxing confidential information to the taxpayer.

Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information:

IRM 21.1.3.2.3, Required Taxpayer Authentication.

IRM 21.1.3.2.4, Additional Taxpayer Authentication.

Before leaving any messages on a taxpayer's answering machine, review:

IRM 10.5.1.6.7.2, Answering Machine or Voicemail.

IRM 10.8.1, “Information Technology (IT) Security Policy

General instructions eliminate repetition of the same instructions for each return. If the general instructions and the specific instructions conflict, follow the specific instructions.

Do not edit a vertical Line, 00, dash or decimal point in a dollars and cents field when the taxpayer has entered dollars only.

Do not edit brackets or parentheses around amounts clearly indicated to be negative by the presence of a minus sign (-).

It will be necessary to bracket negative amounts when editing negative entries on transcription lines (i.e., computing and editing a line entry, editing a missing line entry, etc.).

Received date is edited in MMDDYY format.

Document Perfection should arrange Pages 1, through 4 (202412 and prior), Pages, 1 through 5 (202501 and later) of Form 706, United States Estate (and Generation -Skipping Transfer) Tax Return, in sequential order to facilitate transcription entry. For detailed sequencing instructions, see IRM 3.11.106.18(1). For Form 706-NA , Pages 1 through 3 (202501 and later), Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, see IRM 3.11.106.23 sequencing of pages 1 through 5 for tax years 2013 through 2023 and, Pages 1 through 10 for tax year 2024 and subsequent. For Form 709-NA, United States Gift (and Generation Skipping Transfer) Tax Return of Nonresident Not a citizen of the United States, see IRM 3.11.106.29 Pages 1 through 8 for tax year 2024 and subsequent.

If a current/prior year return is filed on a tax form for other than the appropriate tax year, convert the tax return to the current year format using the prior year conversion tables.

If a current year return is filed on a 2005 or prior year tax form, renumber the prior year return to comply with current year line numbers.

If a current year tax form is used to report prior year tax information, edit the tax period to reflect the prior year.

If the prior year return is filed on the correct/incorrect prior year tax form, renumber the prior year form to current year format.

Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) System through Integrated Submission and Remittance Processing (ISRP) system. Enter edit marks in brown, red, orange, purple, or green pencil or pen.

Only edit items on the return that are for transcription except where specific instructions require editing of a non-transcribed item. Leave lines blank if the entry would be a zero amount unless otherwise instructed.

Do not obliterate, alter, or erase the original entry on a return when deleting or correcting an entry. Always exercise care to ensure that the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.

Do not re-edit edit marks entered by other areas, such as Collections, Entity Control or Accounts Management, except to place the marks in the correct area or perfect for legibility.

Photocopied Returns.

Photocopied Returns - Re-edit or underline any valid, black edit marks. See IRM 3.11.106.2.7, Correspondence Imaging Inventory (CII) Returns, and IRM 3.11.106.4.10, Re-Entry Document Procedures.

For a description of specific edit marks, see the table below:

Edit Mark

Description

"X"

Deletes tax data or indicates do not transcribe an item. For example, if deleting an original entry, edit an "X" to the left of the entry to delete. Edit the correct entry to the left or above the "X"

"/" slash

Indicates do not transcribe a form or schedule.

"//$"

Identifies the beginning and ending of a foreign country code in the entity area. For example, "/EI/$" is edited for "Ireland" or "/GM/$" is edited for "Germany" .

"c/o" or "%"

Indicates an "in-care-of" name for transcription.

Circle

Indicates do not transcribe an entry. Also, deletes entity data or a Received Date.

If the taxpayer circles an entry, edit the entry.

Underline

Identifies an entry for transcription(e.g., Name Control, Tax Period).

Arrow

Indicates the correct placement of a misplaced entry. Use an arrow if the misplaced item is close to the correct line and there is no question where the entry belongs.

Use a double arrow to identify the same figure for transcription in two different places (along with any required transcription data between the two arrows).

Check Mark

Indicates that an entry was manually math verified and is correct.

Bracket/Parenthesis

Indicates a negative numerical amount.

Code and Edit is not required to bracket negative amounts when brackets are preprinted on the form or schedule or when the taxpayer clearly indicates a negative amount with brackets or minus sign (-). Bracket negative amounts when editing negative entries on transcription lines (e.g., computing and editing a line entry, editing a missing line entry).

Vertical Line or Decimal Point

Indicates the separation of dollars and cents if no distinction has been made by the taxpayer.

Zero, Dash, None or N/A

"ZERO" , "DASH" "NONE" or "N/A" are valid entries except when specific instructions require editing of an entry.

Rocker

Indicates the amount paid when drawn under a remittance amount.

The date a document is received in the Campus or the IRS Office is the date stamped as the "IRS Received Date" .

All returns require an IRS Received Date.

The IRS Received Date may or may not be stamped on the face of the return.

A valid IRS Received Date Stamp may consist of the following:

The word "Received" ,

Month (alpha or numeric),

Day (for example "1" or "01" ),

Year -4 digits,

"Area Office" , "Campus" , "Field Office" , "Taxpayer Assistance Center" (TAC), plus the city, location, or functional area within one of these sites (e.g., Compliance Centralized Specialty Tax, Examination, Image Control Team (ICT). Correspondence Imaging Inventory (CII), Accounts Management (AM), etc.)

Not all IRS offices are designated places for filing, and not all IRS employees are authorized to accept a tax return for processing. If a return contains a received date stamp from other than a Taxpayer Assistance Center (TAC), Lockbox, or IRS campus (Compliance, Accounts Management, or Submission Processing (SP), circle out the invalid received date and edit the correct received date according to instructions below. For example, returns received by the Taxpayer Advocate Service (TAS) or the IRS Office of Chief Counsel are not properly filed and a received date by that office is not the "IRS Received Date" .

If the IRS Received Date stamp is not present or the date is illegible or invalid, edit the IRS Received Date in MMDDYY format in the middle of page 1 of the return. Edit the IRS Received Date according to the following priority:

Earliest IRS received date stamp

Earliest received date stamp by Submission Processing Campus, Area Office, U.S. Consulate, or Revenue officer.

Earliest legible U.S. Post Office, Private Delivery Service, or foreign postmark.

Service Center Automated Mail Processing System (SCAMPS) digital date.

Signature date, if within the current year.

Julian Date minus 10 days.

Current date minus 10 days.

Follow tables below for determining the received date.

Check any envelope attached to the return for remittance. If found, hand carry remittance to manager.

Editing the IRS Received Date:

If

Then

The return is received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or extended due date

The return is considered timely, do not edit.

Two or more dates stamped on the return,

Use the earliest IRS Received Date stamped on the return. See Figure 3.11.106-8, Received Dates

Circle all other dates (handwritten or stamped) not needed for transcription.

Treat Received Dates that are circled out by another function as if they are not present.

A Federal return is addressed to the IRS but delivered to a State agency,

Always use the USPS postmark (USPS or Private metered).

An envelope has two private metered postmarks,

Always use the latest private metered postmark.

An envelope has only one private metered postmark,

Use the private metered postmark.

Determining received date from postmark date:

If

Then

An envelope is not attached,

Use the postmark date stamped on the face of the return.

A document was returned for insufficient postage,

use the postmark date that coincides with the correct delivery of the return.

The postmark is missing and the envelope is certified

Look for the "USPS. Com Track & Confirm" record that has been attached to the return (should be before the envelope).

Use the "Acceptance" date on the record to determine timeliness and follow normal editing procedures.

See Figure 3.11.106-8, Received Date

If the "USPS.COM Track & Confirm" record is not attached, take no action.

An envelope has a USPS and private metered postmark,

Always use the USPS postmark.

An envelope has foreign and private metered postmark,

Always use the foreign postmark.

An envelope has more than one private metered postmark

Always use the latest private metered postmark.

Taxpayer indicates attempt failed when trying to electronic file:

Taxpayers are instructed to notate in red in the top margin of the return Rejected Electronic Return to indicate the timely filed return cannot be filed electronically. The notation could be anywhere on the return and is not required, but they are required to attach a copy of the MeF rejection notification in order to show they qualify for edited Received Date

If

And

Then

The postmark date is within 10 days of the date of the rejection.

Edit the IRS Received Date to be the date of the rejection.

For example, postmark date is 03/22/2025 and first rejection is 03/12/2025 Change Received Date to 03/12/25.

The postmark or shipment date includes returns delivered by:

US Postal Service (USPS)

Private delivery Service, e.g., Federal Express Corporation (FedEx) or United Parcel Service (UPS) designated by the IRS. See IRM 3.10.72, Receiving, Extracting and Sorting for a list of designated private delivery services, or

Returns with Foreign Postmark.

The postmark date is more than 10 days after the date of the rejection.

Leave the IRS Received Date as is

Postmark date is 03-23-2023 and first rejection is 03-12-2023 Leave the Received Date as is.

Change the Received Date to the postmark date if the postmark date makes the return timely.

There are two rejections.

Within 10 days of one another and one is within 10 days of the postmark date,

Edit the IRS Received Date to be the date of the first rejection.

Postmark date is 03-22-2023 the second rejection is 03-12-2025. The first rejection is 03-09-2025 Change the Received Date to 030923

There are two rejections with the time between the first rejection and the second rejection greater than 10 days.

The second rejection is within 10 days of the postmark date,

Edit the IRS Received Date to be the date of the second rejection.

Postmark date is 03-22-2025, the second rejection is 03-12-2023. The first rejection is 03-01-2023. Change the Received Date to 031223.

There are two rejections.

Not within 10 days of one another and not within 10 days of the postmark date,

Leave the IRS Received Date as is.

Postmark date is 03-23-2025 the second rejection is 03-12-2025. The first rejection is 03-01-2025. Leave the Received Date as is.

Change the Received Date to the postmark date if the postmark date makes the return timely.

If a return is faxed to another area of the IRS and then sent to Submission for processing, do not edit the Enterprise Electronic Fax (EEFax) Date as the IRS Received Date. Edit a Received Date according to normal procedures.

Do not use the E-Fax Date as the IRS Received Date.

A≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is administratively granted for receiving most tax returns after the last day prescribed for filing such returns. This≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ applies to a return filed under an extension of time as well as to returns subject to regular filing requirements, except that interest is not exempt for the extension period of time.

All received dates on every Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, with an amount greater than zero on Line 18, Page 1, Part II, (202412 and prior) or (Part II Line 20 for 202501 and later) must be verified using the following table:

Form 706, is due exactly 9 months to the day of the Date of Death.

If

Then

Return is received ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ envelope postmark is on or before the due date of the return

Consider the return timely and change the IRS received date to the postmark date.

For example: If the return is due July 1, and:

Received stamped ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or

Received stamped ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ June 30, return is timely filed.)

Estate and Gift Tax returns are erroneously addressed to state agencies

Returns will be date stamped when received with current IRS received date.

Returns that were correctly addressed but erroneously delivered by the U.S. Postal Service to a state agency

If original envelope bears timely postmark or timely date stamp by the state agency, return will be considered timely filed.

Envelope was erroneously addressed

DO NOT change the IRS date stamp.

More than one date is stamped

Use the earliest date

Circle out all other dates

Editing received date on return

See exhibits for where to edit received date:

Exhibit 3.11.106-1, Form 706 United States Estate (and Generation-Skipping Transfer) Tax Return.

Exhibit 3.11.106-3, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States.

Exhibit 3.11.106-17, Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return.

Exhibit 3.11.106-19, Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.

A signature and jurat is required on all returns except the following:

Returns prepared under (IRC) Section 6020(b), Prepared by Collections. These returns must be signed by a Compliance Function Representative. See IRM 3.11.106.4.11.1, IRC 6020(b) - Prepared by Collection.

Accept electronic or typed revenue officer (RO) signatures as valid on the return.

Returns prepared by Examination, for example Substitute for Return. "SFR" or "SUBSTITUTE RETURN"

If the TRPRT print states "TRPRT Print Do Not Process" in the top margin circle the words "Not Process"

Dummy returns prepared by the IRS.

Returns filed under IRC 501(d) (Religious or Apostolic Organization)

Returns attached to taxpayer response to the IRS correspondence containing a jurat and taxpayer’s signature. See paragraph (5) below

Re-entry returns originally filed electronically (E-File). These returns may be identified by the presence of Mod E-File printouts or "Tax Return Print (TRPRT) Do Nor Process" in lieu of an actual return.

Do not correspond for a signature on "CII" returns that have Form 13596, Reprocessing Returns attached. IRM 3.11.106.2.7, Correspondence Imaging Inventory (CII) Returns, for processing instructions.

If a signature is missing correspond.

See IRM 3.11.106.11.1, Issuing Correspondence, for returns that are incomplete and appear to be duplicate filings.

If

Then

The return is not signed on the line designated for the taxpayer's signature

Edit Action Code 225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) or Action Code 226 International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns).

Leave in batch and continue processing.

The jurat is not present on the line designated for the taxpayer's signature (non-standard return)

Edit Action Code 225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) or Action Code 226 International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns)

Leave in batch and continue processing.

"The return is photocopied with a photocopied signature (not original/ink signature)"

If one of the following returns are mailed on or after August 28, 2020, and later, accept a digital or electronic signature. See IRM 10.10.1-2.

"Edit Action Code 225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) or Action Code 226 International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns)"

"Attach a Letter 3463C, Missing Information to Process EO Returns requesting an original/ink signature. "

Leave a correspondence action trail in lower left hand margin indicating Letter 3463C, Missing Information Request to Process Business Returns.

Leave in batch and continue processing.

See IRM 3.11.106.4.4, "Unprocessables Conditions Form 706, "United States Estate (and Generation-Skipping Transfer) Tax Return" and Form 706-NA, "United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States" " , for frivolous returns instructions if the jurat is altered or stricken (crossed out).

Accept a "signature declaration" (a signature with jurat obtained through the IRS correspondence) if attached to the return.

See IRM 3.11.106.4.4, "Unprocessable Conditions Form 706 and Form 706-NA" , for frivolous returns instructions if the "signature declaration" is altered or stricken (crossed out).

If the taxpayer responds with a self-prepared signature declaration, it must contain the same language as the jurat on the tax return; i.e. "UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE EXAMINED THIS RETURN, INCLUDING ACCOMPANYING SCHEDULES AND STATEMENTS, AND TO THE BEST OF MY KNOWLEDGE AND BELIEF, IT IS TRUE, CORRECT AND COMPLETE. DECLARATION OF PREPARER OTHER THAN THE EXECUTOR (Form 706), United States Estate (and Generation-Skipping Transfer) Tax Return, DONOR, -Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE" .

Tax examiners are not handwriting experts. 26 Code of Federal Regulations (CER) 301.6064-1 allows the “IRS” to presume that the signature on a return, statement, or other document is the true signature of the person who actually signed the document.

Do not accept a “✓” or “X” on the signature line as a valid taxpayer signature.

Correspond one time for the signature.

If one of the following returns are mailed on or after August 28, 2020, accept a digital or electronic signature for.

Since most companies now have electronic signatures, if it appears it is an electronic or digital signature, accept.

706, United States Estate (and Generation-Skipping Transfer) Tax Return

706-A, United States Additional Estate Tax Return

706-GS(D), Generation-Skipping Transfer Tax Return for Distributions

706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust

706-GS (T), Generation-Skipping Transfer Tax Return for Terminations

706-QDT, United States Estate Tax Return for Qualified Domestic Trust

706 Schedule R-1, Generation Skipping Transfer Tax

706-NA United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States

709, United States Gift (and Generation-Skipping Transfer) Tax Return

709-NA United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States

The Paid Preparer section is located below the Signature area at the bottom of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.

The Paid Preparer Check box is located next to the taxpayer signature area on Form 709, or Form 709-NA, It indicates whether the taxpayer has elected to allow the Paid Preparer to answer questions about the return as it is processed.

No action is required on amended returns.

Take the following actions when an entry is present in the Paid Preparer Check box on Form 709 or Form 709-NA Tax Returns:

If

Then

The "Yes" box is checked

Take no action.

The "No" box is checked; neither box is checked; or-both boxes are checked

Circle the Paid Preparer's Phone Number, if present.

The Preparer's Tax Identification Number (PTIN) is located to the right of the Preparer's signature in the PTIN box at the bottom right corner of Form 706 Page 1 (202412 and prior), Page 2 (202501 and later). Page 1 bottom right corner of Form 706-NA, Form 706-GS(D), Form 706-GS(T), Form 709, and Form 709-NA United States Gift (and Generation Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.

No action is required on amended returns.

A valid PTIN begins with the alpha "P" followed by an eight - digit number (e.g., PXXXXXXXX). Circle the PTIN if it is invalid, all zeros or nines.

The Firm's EIN is located below the Preparer's PTIN box at the bottom right corner, Page 1 (202412 and prior), Page 2 (202501 and later) of Form 706. Page 1 bottom right corner of Form 706-NA, Form 706-GS(D), Form 706-GS(T), Form 709, and Form 709-NA.

No action is required on amended returns.

The Firm's EIN is a 9 - digit number. Circle the EIN if it is invalid, all zeros or nines.

The Paid Preparer's Phone Number is located below the Firm's EIN )at the bottom right corner of Page 1 (202412 and prior), Page 2 (202501 and later) of Form 706. Page 1 bottom right corner of Form 706-NA, Form 706-GS(D), Form 706-GS(T), Form 709, and Form 709-NA, (Page 1).

No action is required on amended returns or if the number is more than 10 digits.

If the Paid Preparer's Phone Number is illegible or less than 10 digits, circle the phone number.

All returns must have a tax period. Edit the tax period at the top of the form for Form 706, Form 706-GS(D), Form 706-GS(T), Form 706-NA, Form 709, or Form 709-NA and only, in YYMM format.

If

Then

The return is for the current processing year

No editing is necessary.

The taxpayer has notated a tax period other than the preprinted year on the return (this is not a current year return)

Edit the tax period based on the taxpayer's indication.

The tax period is missing, incomplete, or illegible

Review the return or attachments for the correct period.

If found, edit the tax period to the right of the form (in the area under the form title) in YYMM format.

If unable to determine the tax period after searching the return and attachments, process the return for year currently being processed.

The following information pertains to tax period editing for Form 706, Form 706-GS(D), Form 706-GS(T), Form 706-NA, Form 709 or Form 709-NA

If

Then

Editing tax period

Do not edit the tax period on Form 706-GS(D), Form 706-GS(T), Form 709, Form 709-NA, if it is for the current tax period.

If editing is required (for other than the current tax period), edit at the top of the return in YYMM format.

An Early Filed Return is defined as a return whose IRS received date is prior to the tax period ending date.

Do Not ProcessForm 706, with the date of death for current year January to June of said year processing. IRM 3.11.106.2 General Information (2) for processing instructions.

Never send back an Early Filed return to the taxpayer.

If

Then

The return is early filed and is not a "Final"

Edit CCC "U" or Action Code 480 on the return.

Route the return to Rejects, using Form 4227, Intra-SC Reject or Routing Slip to suspend the return and note Early Filed Return.

The return is early filed and a "Final"

Edit CCC "F" .

Early Filed Return Without Remittance

Edit CCC "U" or Action Code 480 on the return.

Attach Form 4227, Intra-SC Reject or Routing Slip and note "Early Filed" .

If unable to determine tax period, prepare Form 3696, Correspondence Action Sheet or other approved Correspondence Action Sheet, to correspond for the correct tax period.

If the taxpayer replies that the tax period is correct as it was originally filed, (i.e., Form 706, Form 706-NA, Form 706-GS(D), or Form 706-GS(T), suspend the return until January of the year due.

If there was NO reply to correspondence, suspend the return until January of the year due.

If the taxpayer replies that the form (i.e., Form 706, Form 706-NA, Form 706-GS(D), Form 706-GS(T), was for the previous year, correct the tax period 0X12, delete CCC "U" or Action Code, and process the return.

Early Filed Return With Remittance

Edit CCC "U" or Action Code 480 on the return.

Attach to front of return Form 4227, Intra-SC Reject or Routing Slip and note Early Filed.

If unable to determine tax period, prepare Form 3696 Correspondence Action Sheet or other approved Correspondence Action Sheet. Attach to the front of the form (i.e., Form 706, Form 706-NA, Form 706-GS(T)Form 706-GS(D).

If the taxpayer replies that the tax period is correct as it was originally filed, (i.e.,) Form 706, Form 706-NA, Form 706-GS(D), or Form 706-GS(T), suspend the return with action code 480. Attach to front of return Form 4227, Intra-SC Reject or Routing Slip and note Early Filed

If there was NO reply to correspondence, suspend the return until the year the return is due.

If the taxpayer replies that the return was for the previous year, correct the tax period 0X12, delete CCC "U" or Action Code, and process the return.

If a remittance is attached, give to your manager.

See IRM 3.11.106.23.6, Tax Period Form 709, for instructions for tax period editing.

The entity of a tax return identifies the taxpayer on the business master file. The entity area of the return contains the following:

Social Security Number (SSN)

Name

"In-care-of" name can be identified by the words in care of, or the symbols c/o or % (percent). Ensure the in care of name is the proper location.

Address

If the "Form 706” series "Form 709 or Form 709-NA" " indicates bankruptcy (e.g. shows) "RECEIVER" , "TRUSTEE" OR "DEBTOR IN POSSESSION" in the entity area or on an attachment, route to Entity Control using local procedures or Form 13934, "Entity Document /C&E Merge Transmittal" .

The SSN is a 9-digit number (XXX-XX-XXXX) assigned to identify the taxpayer.

Determine the SSN as follows:

If

And

Then

SSN is missing

You can determine the correct SSN from the attachments and/or schedules

Edit the SSN to the appropriate location.

Unnumbered

Remove return from batch.

Attach Form 4227, Intra-SC or Reject or Routing Slip to front of return or follow local procedures.

Forward to Entity Control for SSN assignment.

The SSN is either a PTIN or Individual Taxpayer Identification Number (ITIN)

Numbered

Edit Action Code 320.

Attach Form 4227, Intra-SC Reject or Routing Slip to front of return for routing to Entity Control and leave document in batch.

Multiple SSN’s are present

Unnumbered

Remove return from batch.

Attach Form 4227, Intra-SC Reject or Routing Slip to front of return or follow local procedures.

Forward to Entity Control for SSN assignment.

Multiple SSN’s are present

Numbered

Edit Action Code 320.

Attach Form 4227, Intra-SC Reject or Routing Slip to front of return and leave in the batch.

The SSN contains any of the following conditions and cannot be determined from attachments and/or schedules:

Illegible

Missing

Other than 9 digits

All zeroes or,

All nines

Unnumbered

Edit Action Code 320

Attach Form 4227, Intra-SC Rejecting or Routing Slip to front of return or follow local procedures.

The SSN contains any of the following conditions and cannot be determined from attachments and/or schedules:

Illegible

Missing

Other than 9 digits

All zeroes or,

All nines

Numbered

Circle out all illegible SSN’s, zeroes or nines.

Edit Action Code 320.

Attach Form 4227, Intra-SC Reject or Routing Slip to front of return and leave in the batch.

PENDING, APPLIED FOR, etc., is indicated in the SSN area

Unnumbered

Research IDRS.

If not found, route to Entity Control. Using Intra-SC Form 4227, Reject or Routing Slip and edit Action Code 320.

PENDING, APPLIED FOR, etc., is indicated in the SSN area.

Numbered

Edit Action Code 320.

Attach Form 4227, Intra-SC Reject or Routing Slip to front of return and leave in the batch.

Action Code 320 is valid on Form 706, Form 706-GS(D), Form 706-GS(T), Form 706-NA, Form 709, and Form 709-NA. All other returns, Form 706-A, Form 706(D), Form 706-CE, Form 706-GS(D-1), and Form 706-QDT) are processed through a manual correction system and CCC "U" should be used on these returns.

The name control consists of 4 characters or less:

Valid characters are alpha, numeric, ampersand (&), hyphen (-) and blank. However, blanks are only valid in the last 3 positions.

Disregard the word "THE" in the name control only when followed by more than one word.

See Document 7071-A, BMF Name Control Job Aid, to determine the name control.

Edit the name control as follows:

If

And

Then

Able to determine the name control

Underline the name control.

Unable to determine the name control

Unnumbered

Research IDRS.

If found, edit to the proper location.

If not found, route to Entity Control following local procedures.

Unable to determine the name control

Numbered

Edit Action Code 352.

Attach Form 4227, Intra-SC Reject or Routing Slip and leave in the batch.

"Action Code 352 is valid on Form 706, Form 706-GS(D), Form GS(T), Form 706-NA, Form 709, and Form 709-NA. All other returns (Form 706-A, Form 706-D, Form 706-CE, Form 706-GS(D-1), and Form 706-QDT are processed through a manual correction system and CCC "U" should be used on these returns."

An "in-care-of" name can be identified by the words "in care of" or the symbols "c/o" or "%" (percent).

Ensure that the "in-care-of" name is located above the street address:

If

Then

The "in-care-of" name is located below the street address

Arrow the "in-care-of" name above or before the street address. Do Not arrow the "in-care-of" name to the Primary name line area.

The "in-care-of" name is shown on an attachment

Edit the in-care-of name above the street address beginning with the "%" or "c/o" in the first position.

An "in-care-of" name is changed but there is no indication of an address change

Edit the in-care-of name as shown above.

Always circle out the in-care-of symbol (% or c/o) if it is present with an address and not followed by an in-care-of-name or business. Do not use the ampersand (&) and the percent sign (%) when editing address information.

Perfect the address when the mailing address (Street or PO Box) is not easily identified.

Do not perfect the address on amended returns (CCC "G" ).

Perfect the address as follows:

If

And

Then

The address contains information other than a street address or PO Box

No perfection is necessary Integrated Submission and Remittance Process (ISRP) will enter the complete address.

An attachment shows the address was changed,

Edit the new address in the Entity section of the return.

Form 8822, Change of Address, is attached

Information is the same

Take no action.

Form 8822, Change of Address, is attached

Information is different

Detach Form 8822, Change of Address and route to Entity Control following local procedures.

Both a PO Box and a street address are shown

Notate "TC 014" in the upper left margin. See Figure 3.11.106-6, Entity Edit Marks.

Pull the return for research/input of TC 014 by the Code and Edit Research Clerk.

A TC 014 must be input to retain the street address as a location address and the P.O. Box as the mailing address.:

Two street addresses are shown

For Form 706 Series and Form 709 series returns, underline the first street address and circle the second address.

Notate "TC014" in the upper left margin.

Pull the return for research by the Code and Edit Research Clerk for the correct address

If address on IDRS matches one of the address on the return, underline the correct address.

Two PO Boxes are shown

For Form 706 series and Form 709 series returns, underline the first PO Box.

Notate "TC014" in the upper left margin.

Pull the return for research/input of TC 014 by the Code and Edit Research Clerk.

A TC 014 must be input to retain the street address as a location address and the P.O. Box as the mailing address.

One street address is shown

The taxpayer changed the address to a PO Box

Notate TC014 in the upper left margin.

Pull the return for research/input of TC 014 by the Code and Edit Research Clerk.

A TC 014 must be input to retain the street address as a location address and the P.O. Box as the mailing address.

The city and state or address, are not shown on the return but are shown on an attachment

Edit the full address in the Entity section of the return.

The ZIP Code is missing or illegible

Is not available from the return or attachments

See Exhibit 3.11.106-33, State Codes and ZIP Codes for determining ZIP Code. See Figure 3.11.106-6, Entity Edit Marks.

Only the first 3 digits of the ZIP code can be determined

Edit "01" for the fourth and fifth digits.

It is necessary to edit the street address

See Exhibit 3.11.106-32, Address/Street Abbreviations for Current Address/Street Abbreviations.

If no address is found on the return or attachments.

Is not available from the return or attachments

Give return to clerk to research IDRS for a valid address. If found edit the address on the return in the Entity Section.

Always circle out the "in-care-of" symbol ("c/o" or "%" ) if it is not followed by an in-care-of name (individual or business). Do not use the ampersand (&) and the percent symbol (%) when editing address information.

The U.S. Postal Service established new address requirements for Army Post Office (APO), Domestic Post Office (DPO), and Fleet Post Office (FPO) addresses. If an address appears in the old format, such as APO New York, NY 091XX, convert to the new state code abbreviation (APO AE 091XX) based on the following ZIP Codes:

ZIP Code

Address

Abbreviation

340XX

APO/DPO/FPO

AA

090XX-098XX

APO/DPO/FPO

AE

962XX-966XX

APO/DPO/FPO

AP

Figure 3.11.106-6

Please click here for the text description of the image.

A foreign (international) address is any address that is not in the 50 states or the District of Columbia.

Consider returns with Army Post Office (APO)/Diplomatic Post Office (DPO)/Fleet Post Office (FPO) addresses as domestic addresses. Entity Perfection - Domestic Address.

Consider returns with addresses in the following U.S. Possessions/Territories as a foreign (international) address for processing purposes. Edit in the same way as domestic addresses.

Edit a two character alpha code for the possession name:

U.S. Possession

Abbreviation

American Samoa

AS

Federated States of Micronesia

FM

Guam

GU

Marshall Islands

MH

Northern Mariana Islands

MP

Palau

PW

Puerto Rico

PR

Virgin Islands (U.S.)

VI

A ZIP Code must be present. Edit the appropriate ZIP Code if one is not provided. See Exhibit 3.11.106-34, U.S. Possessions and ZIP Codes.

All other foreign (international) addresses are edited the same as a domestic address with the following exceptions:

Ensure the foreign country is the last entry in the address.

Circle out the foreign country and edit the country code preceded by a "/" and followed by "/$" as the last entry in the address. See Exhibit 3.11.106-35, Foreign Country Codes for Official Foreign Country Codes.

Submission Processing BMF Foreign Address Job Aid (Number 2324-002) provides examples for editing foreign (international) addresses.

Check if the address contains a province, state, country or territory for the following: Australia, Brazil, Cuba, Italy, Mexico, or The Netherlands.

If

Then

A province, state or territory name is present

Circle out province, state or territory name.

Edit appropriate abbreviation. See Exhibit 3.11.106-36, Province, State and Territory Abbreviation.

A province, state or territory name is not present

Continue editing the return.

Province, state or territory is shown in abbreviated format

Continue editing the return.

There could be other countries with provinces, states, and territories not listed above, See Code and Editing BMF Tax Returns, Foreign Addresses Job Aid (Number 2324-002) for more information.

A ZIP Code is not required on a foreign (international) address. Foreign (International) addresses use a postal code that is entered before the city or foreign country and is part of the address.

In an effort to assist Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique country code based on the province/territory.

If

Then

The foreign address contains a Canadian province/territory name or abbreviation

See table below to ensure the correct Canadian province abbreviation is present or edited to the return.

Circle out the country name and Edit the appropriate country code based on the province preceded by a "/" and followed by a "/$" as the last entry in the address.

The foreign address does not contain a Canadian province/territory name or abbreviation

Circle the country name.

Edit the country code /CA/$ as the last entry in the address.

Canadian Province/Territory Abbreviation and Country Code

Canadian Province/Territory

Province/Territory Abbreviation

Country Code

Alberta

AB

XA

British Columbia

BC

XB

Manitoba

MB

XM

New Brunswick

NB

XN

Newfoundland and Labrador

NL

XL

Northwest Territories

NT

XT

Nova Scotia

NS

XS

Nunavut

NU

XV

Ontario

ON

XO

Prince Edward Island

PE

XP

Quebec

QC

XQ

Saskatchewan

SK

XW

Yukon

YT

XY

The following information pertains to processing Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

Form 706, Page 1, Part I and 2, Page 2, Part II, Page 3 Parts III and IV, Page 4, Parts IV and V, Page 5, Part VI, Sections A, B, C, and D, for 202501 and later, and Page 1, Parts I and II, Page 2, Part IV, Page 3, Part V, and new Page, Part VI have changed for tax year 2012 (PY 2013) per Work Request Notification (WRN) received 6/29/2012. Many new lines have been added as well as new Part VI which contains all of the Portability information. All of these new lines have been requested to be transcribed by E&G Policy, Chief Counsel and Treasury. Because of this transcription request, tax examiners (TE’s) will now be responsible for making sure pages 1 through 4 are identified to facilitate transcription entry. If the return is not in sequential order (pages 1, 2, 3, 4), please identify pages 2, 3, and 4 by stapling a Post-It (sticky) with the page number on it within the return. We are using this method so large returns with several pages (perhaps a will or trust) between page 2, 3, and 4 can be identified quickly by ISRP. Stapling the Post-It (sticky) to the respective page will relieve the burden of having to disassemble the returns.

In the past, Form 706, was only coded and edited on Page 1 of the return. Beginning in tax year 2013 (PY 2014), Page 4, Part VI, Section C of the return will also need to be coded and edited. Changes were made to the DSUE (Deceased Spousal Unused Exclusion) calculation in a circulation of Form 706, received on September 23, 2013. As a result of the increase in the tax rates under ATRA (American Taxpayer Relief Act), dividing the total gift tax paid or payable by 40% caused an error in the DSUE calculation (due to the increase in the tax rate). More changes were also incorporated into the instructions, specifically the Line 7 worksheet which is submitted with the Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (the worksheet is NOT edited or transcribed). Line 2 was changed to "Reserved" , so Code and Edit should edit a zero on Line 2 of Form 706, Page 4, Part VI, Section C. Due to budget constraints, programming was not able to be completed so this is the work around. ISRP is going to be instructed to field release through the line (so "0" will populate on the Error Resolution System (ERS) screens). Error Resolution System (ERS) is instructed to make sure the line shows zero.

For 202501 and later Part VI, Section C Line 2 is no longer reserved. Code and Edit is instructed to not enter a zero starting for TY 202501 and later.

See Exhibit 3.11.106-1, Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, for transcription fields.

The Entity portion of the Form 706 includes the following:

Box 1a and Box 1b Decedent's first (1a) and last name (1b)

Box 2 Decedent's Social Security Number (SSN)

Box 3a 202412 and prior County, State and Zip at death

Box 3b 202501 and later County at Death

Box 3c 202501 and later, State at Death

Box 3d 202501 and later, Zip at Death

Box 4 202412 and prior Date of Birth or Box 5 202501 and later

Box 5 202412 and prior Decedent’s Date of Death or Box 6 202501 and later

Box 6a 202412 and prior Name of Executor or Box 7a 202501 and later

Box 6b 202412 and prior Executor’s address or Box 7c 202501 and later

Box 6d 202412 and prior Multiple Executor’s Check Box or Box l 202501 and later

Box 7e 202501 and later City, Town or Post Office of Executor

Box 7f 202501 and later State of Executor

Box 7g 20251 and later Zip Code of Executor

Box 11 re. Section 20.201 or 2(a)(7)(i) Check box, for (202412 and prior) and Box 12 for 202501 and later

The name control consists of the first 4 alpha characters of the Decedent's last name.

Blanks may be present only in the last 2 positions of the name control.

Ampersand (&), and hyphens (-) are the only valid non-alphabetic characters in a name control.

Underline the first 4 characters of the Decedent's last name. (See Figure 3.11.106-6.) Entity Edit Marks.

See Document 7071-A, BMF Name Control Job Aid.

If name control cannot be determined, research IDRS. If no data found, use Action Code 320, use Form 4227, Intra-SC Reject or Routing Slip and route to Entity Control.

Nine numeric characters of the SSN must be present for all estate and gift tax returns; all nines (999999999) and zeros (000000000) will be invalid.

If

Then

Return is unnumbered and SSN is different from death certificate

Research IDRS for correct SSN.

Return is numbered and SSN is different from death certificate

Edit Action Code 320 and route to Entity Control for determination.

Return is unnumbered and other than 9 digits, multiple SSNs, missing SSN or in EIN format

Research IDRS for correct SSN.

Return is numbered and other than 9 digits, multiple SSNs, missing SSN or in EIN format

Edit Action Code 320 and route to Entity Control for determination.

Return is unnumbered and no SSN is found, or the correct SSN cannot be determined

Withdraw the return, use Form 4227, Intra - SC Reject or Routing Slip and route to Entity Control.

SSN is on return when return is sent back from Entity Control

Continue processing the return.

When there are 2 or more executor’s names listed on the return, underline the first name and circle out the others.

Edit the executor’s name from attachments if not present in Box 6a for(202412 and prior) or Line 7a for (202501 and later.

The Executor's address is found on Page 1, Box 6b, of Form 706; also check Page 2, Part IV for (202412 and prior) or Part I Box 7a (202501 and later).

If more than one Executor and more than one Executor address is listed on the return, underline the address that belongs to the first Executor and circle out the others.

See IRM 3.11.106.17.5, Entity Perfection - Domestic Address, for instructions to perfect domestic addresses.

See IRM 3.11.106.17.6, Entity Perfection - Foreign (International) Address, for instructions to perfect foreign (international) addresses.

Always circle out the "in care of" symbol ("c/o" or "%" ) if it is not followed by an in-care-of name (individual or business). Do not use the ampersand (&) and the percent symbol (%) when editing address information.

The decedent’s residence (domicile) at time of death is found on Page 1, Part I , Box 3a for (202412 and prior) or Box 3b for County at death, Box 3c for State at death, and Box 3d for Zip Code at death for (202501 and later). See IRM 3.11.106.18.6.8, (County/State of Residence) for further instruction.

The legal residence (domicile) of the decedent in Box 3a determines whether the return is a domestic or foreign (international) address return.

KCSPC will process all domestic domicile address returns and all foreign (international) address returns (any address that is not in 1 of the 50 states or the District of Columbia).

All U.S. Possessions are considered foreign:

American Samoa (AS)

Federated States of Micronesia (FM)

Guam (GU)

Northern Mariana Islands (MH)

Marshall Islands (MH)

Palau (PW)

Puerto Rico (PR)

Virgin Islands (U.S.) - (VI)

APO/DPO/FPO addresses are not considered to be foreign (international) addresses.

The Postal Service established new address requirements for APO/DPO/FPO addresses.

If the old address appears (i.e., APO New York, NY 091XX) it must be converted to the new state code abbreviation based on the ZIP Code (i.e., the previous example would be converted to APO AE 091XX).

ZIP Code

Address

Abbreviation

340XX

APO/DPO/FPO

AA

090XX-098XX

APO/DPO/FPO

AE

962XX-966XX

APO/DPO/FPO

AP

CCC’s B, D, G, L, O, R, W, Y, X, 3 and 7 are valid for Form 706.

See IRM 3.11.106.10, Computer Condition Codes, for specific definitions.

Form 706, tax returns are filed at Kansas City Submission Processing Center (KCSPC).

Form 706 must be filed for individuals with estates that have the following:

Form 706 Total Gross Estate and Year of Death

Total Gross Estate of

Year of Death

$13,990,000 and over

2025

$13,610,000 and over

2024

$12,920,000 and over

2023

$12,060,000 and over

2022

$11,700,000 and over

2021

$11,580,000 and over

2020

$11,400,000 and over

2019

$11,180,000 and over

2018

$5,490,000 and over

2017

$5,450,000 and over

2016

$5,430,000 and over

2015

$5,340,000 and over

2014

$5,250,000 and over

2013

$5,120,000 and over

2012

$5,000,000 and over

2011

$5,000,000 and over

2010

The following information pertains to the due date of Form 706

If (Form 706)

Then

Decedent died after December 31, 1970,

See Exception in next row for dates of death between January 1, 2010, and December 17, 2010 (inclusively).

Form 706, is due the day of the ninth calendar month after the decedent’s death.

If the date of death is between January 1, 2010, and December 17, 2010 (inclusively),

The return due date is September 19, 2011, as mandated in The Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010 (PL 111-312).

If there is no numerically corresponding day in such ninth month,

The last day of the ninth month is the due date.

If the decedent died on May 31 of the current year, the due date is February 28 of the following year.

If February 28 falls on a Saturday or Sunday the due date would be the following Monday.

(See the due date table below.)

Executor’s of Estates of a decedent dying after October 22, 1986,

They must report all direct skips occurring at death from November 1987 or subsequent revision of Form 706.

An application for extension of time for filing (Form 4768) Application for Extension of Time to File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) tax may be granted. An approved Form 4768, Application for Extension of time to File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) is a six- month extension making the extended due date 15- months from the date of death.

The following table lists the due dates of Form 706 returns:

Other than 2010 revision forms.

Month of Death

Month Due

January

October

February

November

March

December

April

January

May

February

June

March

July

April

August

May

September

June

October

July

November

August

December

September

The following table provides examples of due dates for 2010:

If

Then

DOD is 01-01-10 thru 12-16-10

Due date is 09-19-2011 (per The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (PL 111-312) date should be 09-17-2011, but that is a Saturday)

DOD is 12-17-10 thru 12-31-10

Due date is 09-30-11

Date of Death Occurring in Years Other Than 2010

Date of Death

Due Date

DOD is 01-31

Due date is 10-31 of the same year

DOD is 02-28

Due date is 11-28 of the same year

DOD is 02-29

Due date is 11-29 of the same year

DOD is 03-31

Due date is 12-31 of the same year

DOD is 04-30

Due date is 01-30 of the following year

DOD is 05-31

Due date is 02-28 or 02-29 of the following year.

DOD is 06-30

Due date is 03-30 of the following year

DOD is 07-31

Due date is 04-30 of the following year

DOD is 08-31

Due date is 05-31 of the following year

DOD is 09-30

Due date is 06-30 of the following year

DOD is 10-31

Due date is 07-31 of the following year

DOD is 11-30

Due date is 08-30 of the following year

DOD is 12-31

Due date is 09-30 of the following year

If the due date were to fall on a Saturday, Sunday, or Legal Holiday, the due date is postponed to the next weekday.

If a Form 706, is received with an original Form 709, or Form 709-NA, attached to it (for the same period in which the decedent died) with an approved extension of time to file, then:

Pull the Form 709, or Form 709-NA.

Edit the received date, and note on the return, "Extension Form 706, granted to MMDDYY. Do not assess penalties" .

Edit CCC "R" on the return so that a penalty will not be assessed on the Form 709, if the Form 706, posts after the Form 709. See IRM 3.11.106.23, Processing Form 709.

All Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return Returns must be converted to the current year tax form revision. See Exhibit 3.11.106-24, Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (prior Year - 2004 through 2002 Revisions) and Exhibit 3.11.106-25, Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (prior Year - 2001 and prior Revisions).

Tax is due when return is due, unless deferred payment under (IRC) Section 6161(a) or Section 6163 has been granted, or unless Executor has properly elected to pay by installments under (IRC) Section 6166.

Check non-remit Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return returns for presence of a remittance before releasing to Numbering.

See Form 706, Lines 3 and 4 on 1985 subsequent revisions.

The taxpayer is instructed to send Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, to Estate & Gift in Cincinnati.

Form 4768, Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer Taxes, (Part III) only applies to Extension of Time to File.

All numbered Form 706 will be assigned Document Locator Numbers (DLNs) and blocked before sending to Document Perfection.

All unnumbered Form 706 will be numbered after Code and Edit.

Expedite processing of estate tax returns so that executor’s can obtain discharge from personal liabilities and final distribution can be made to beneficiaries, examination of the returns is necessary.

Examine for signature of Executor indicated on return.

If there are Coexecutor’s, it is sufficient for only one of the Coexecutor’s to sign the return.

Letter 3463C may be used to request executor’s missing signature.

Use Action Code 225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) or 226 International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns). for missing or photocopied signature.

Accept electronic and digital signatures on forms listed below dated on or after August 28, 2020. (Looks like is acceptable)

706, United States Estate (and Generation-Skipping Transfer) Tax Return

706-A, United States Additional Estate Tax Return

706-GS(D), Generation-Skipping Transfer Tax Return for Distributions

706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust

706-GS (T), Generation-Skipping Transfer Tax Return for Terminations

706-QDT, United States Estate Tax Return for Qualified Domestic Trust

706 Schedule R-1, Generation Skipping Transfer Tax

706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States

709, United States Gift (and Generation-Skipping Transfer) Tax Return

709-NA United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.

If

Then

Signed jurat (declaration) is received

Attach it to the return.

Review and search attachments for any required information, (i.e., POA’s, and extensions). IRM 3.11.106.2.8, Routing Guide for Attachments.

The following information pertains to amended returns. :

For Form 706 series returns, do not detach any attachments.

If

Then

Return is marked,

"Amended" ,

"Revised" ,

"Adjusted" ,

"Subsequent" ,

"Substitute" ,

"Corrected" , etc.

See IRM 3.11.106.10.5.1, Amended Returns.

Document is unnumbered.

Entity cannot be perfected.

Research IDRS.

No Date could be found.

Edit Action Code "320" on the return.

Route to Entity Control on Form 4227, Intra-SC Reject or Routing Slip.

Document is numbered.

Entity cannot be perfected.

Research IDRS.

No Date could be found.

Edit Action Code "320" on the return.

Route to Entity Control on Form 4227, Intra-SC Reject or Routing Slip.

See IRM 3.11.106.13, Received Date, for information regarding received date editing.

The following information pertains to the received date:

If

Then

The IRS received date has not been stamped on the first page of the return

A received date must appear on every Form 706.

Make sure the envelope with the postmark date is stapled to the back of the return.

Determine received date from return or attachments in the following priority (see IRM 3.11.106.13, Received Date.

Edit in MMDDYY format near the dotted lines on Line 8.

The following information pertains to editing Date of Birth:

If

Then

The Date of Birth is missing

Check death certificate for correct date.

If correct date is unobtainable, leave blank or circle incorrect date.

Date of Birth is found

Edit in MMDDYY format.

The following information pertains to editing the Date of Death which can be found on Form 706, Page 1, Box 5 :(202412 and prior) or Box 6 for (202501 and later)

If

Then

Date of Death is missing

Check death certificate for Date of Death.

Edit Date of Death in MMDDYY format.

No death certificate is attached

Research IDRS. If DOD cannot be found, continue processing.

If the location of transcription lines on a prior year revision is different from the current year revision, change the transcription lines to correspond with the current year tax form revision. See Exhibit 3.11.106-24, Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (prior Year - 2004 through 2002 Revisions) and Exhibit 3.11.106-25, Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (prior Year - 2001 and prior Revisions).

The decedent’s residence at time of death is found on Page 1, Part I, Box 3a.

The following information pertains to county/state of residence at time of death:

If

Then

Box 3a is blank or County at Death, State at Death or Zip at Death is missing

Research for Death certificate:

If found, edit the full address including the County at Death, State at Death and Zip Code at Death.

Underline the County at Death, State at Death, Country and ZIP Code at Death.

County at Death, State at Death or Zip Code at Death can’t be found, continue processing.

County at death is one of the biggest fallout errors to ERS.

Box 3a is blank and it cannot be determined after research of the death certificate

Do not correspond with the Executor for county/state/Zip Code. If it is missing from the death certificate, edit "Unknown" .

Box 3a has other information (i.e., street address, PO Box, and city)

Circle out erroneous information in Box 3a. One or any combination of the following can be present:

County

City

State

ZIP Code

See IRM 3.11.106.17.6, Entity Perfection - Foreign (International) Address for editing a foreign address.

Box 3a has a foreign (international) address

See Exhibit 3.11.106-35, Foreign Country Codes, for the 2- digit Country Code to be edited in Box 3a.

See IRM 3.11.106.17.6, Entity Perfection - Foreign (International) Address for editing a foreign address.

The decedent’s residence at time of death is found on Page 1, Part I, Boxes 3b, 3c, and 3d for 202501 and later. The following information pertains to county/state/zip code of residence at time of death:

If (Form 706)

Then

Any of Box 3b, 3c or 3d are blank or County at Death, State at Death or Zip at Death is missing

Research for Death certificate:

If found, edit the full address including the County at Death, State at Death and Zip at Death.

Underline the County at Death, State at Death, and ZIP Code at Death.

County at death is one of the biggest fallout errors to ERS.

Any of Box 3b, 3c, and 3d are blank and it cannot be determined after research of the death certificate

Do not correspond with the Executor for county/state or zip. If it is missing from the death certificate, edit Unknown in the box that is missing

Box 3b, 3c or 3d has other information (i.e., street address, PO Box, and city)

Circle out erroneous information in Box 3b, 3c or 3d. One or any combination of the following can be present:

County

State

ZIP Code

See IRM 3.11.106.17.6, Entity Perfection - Foreign (International) Address for editing a foreign address.

Box 3b, 3c, or 3d indicates a foreign (international) address

See Exhibit 3.11.106-35, Foreign Country Codes, for the 2 digit Country Code to be edited in Box 3a.

See IRM 3.11.106.17.6, Entity Perfection - Foreign (International) Address for editing a foreign address.

Manual math verification of the return is not required. The computer will check the transcribed totals and any changes or corrections will be performed by ERS (Error Resolution System) examiners.

Cincinnati Centralized Specialty Tax will correspond for supporting schedules, if missing, for estates that have the following:

Form 706 Total Gross Estate and Year of Death

Total Gross Estate of

Year of Death

$13,990,000 and over

2025

$13,610,000 and over

2024

$12,920,000 and over

2023

$12,060,000 and over

2022

$11,700,000 and over

2021

$11,580,000 and over

2020

$11,400,000 and over

2019

$11,180,000 and over

2018

$5,490,000 and over

2017

$5,450,000 and over

2016

$5,430,000 and over

2015

$5,340,000 and over

2014

$5,250,000 and over

2013

$5,120,000 and over

2012

$5,000,000 and over

2011

$5,000,000 and over

2010

All money entries on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Part II can contain up to fifteen numeric characters and are edited in dollars and cents. All money entries must be positive.

Balance Due/Overpayment-negative amounts should be edited with brackets only if the taxpayer does not indicate a negative amount with brackets or a minus (-) sign. Also, Taxable estate (Line 3c) can be a negative amount as well as a positive amount.

Zero is not considered a significant entry unless specifically stated.

Line 1 - Total gross estate. This figure is carried forward from Part V , Line 13, Accept taxpayer's figure.

If blank, zero, dash, or none but there is an entry on, Part V, Line 13, edit the appropriate amount to Line 1.

Line 2 - Tentative total allowable deductions. This figure is carried forward from Part V, Line 24 (2012 thru 2025 form revisions), Line 22 (2011 form revision). Accept taxpayer's figure.

If blank, zero, dash, or none but there is an entry on Part V, Line 24, edit the appropriate amount to Line 2.

Line 3a - Tentative taxable estate. Accept taxpayer's figure.

Line 3b - State death tax deduction. Accept taxpayer's figure.

For tax year 2005 and subsequent, the credit for State death taxes has been replaced by the State death tax deduction. For returns with dates of death in 2005 or subsequent filed on a 2004 or prior year return, place a "X" to the left of the taxpayer’s figure on Line 13.

Line 3c - Taxable estate. If Line 3c is a negative entry, bracket the amount only if the taxpayer does not indicate a negative amount with brackets or a minus (-) sign. Accept taxpayer’s entry.

Line 4 - Adjusted taxable gifts. Accept taxpayer's figures.

Line 5 - Net Taxable Estate - Totals of Lines 3c and 4. If this entry is a negative amount, place a "X" to the left of taxpayer's figure. Otherwise, accept taxpayer's figure.

Line 6 - Tentative tax on Line 5. Accept taxpayer's figure.

Line 7 - Total gift tax. Accept taxpayer's entry.

If Line 7 is greater than Line 6, place an "X" to the left of the taxpayer's entry and edit the amount from Line 6.

If taxpayer brackets entry or uses a minus (-) sign, delete brackets and/or minus sign and continue processing return.

Line 8 - Gross estate tax amount. Accept taxpayer's entry.

Line 9 - (2011 and prior revisions) Maximum unified credit. Verify taxpayer's entry on Line 9 with Unified/Applicable Credit Table below. See IRM 3.11.106.18.7.2, Maximum Unified/Applicable Credit-Form 706, to make sure entry is correct to decedent’s year of death. If entry does not match the decedent’s year of death, edit correct amount.

See paragraph 12a below for 2011 and subsequent Form 706 (with a Date of Death in 2011, 2012, etc.). 2011 and subsequent amounts can be greater than table amount because of the Portability election. Allow the greater amount and continue processing.

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (also known as TRUIRJCA) included provisions affecting the 2011 Form 706 (with a Date of Death in 2011). They include (but are not limited to): The applicable exclusion amount now may consist of (1) a basic exclusion amount of $5,000,000 and, (2) in the case of a surviving spouse, the unused exclusion amount (DSUE), of a predeceased spouse (who died after 12/31/2010). While there is nothing indicated on the 2011 Form 706, the taxpayer is instructed to make a note of the section 2010 election (or state something like, “see statement attached”) and attach copies of the predeceased spouse's timely/completed return, even if there was no tax due, to allow the surviving spouse to use the predeceased spouse's unused exclusion amount.

Taxpayer husband died 1/3/2011. Taxpayer wife died 8/5/2011. Husband reported estate tax of $607,529, so the unused credit would be $1,123,271. (That's the maximum unified/applicable credit amount of $1,730,800 - $607,529 tax). Wife reports estate tax of $2,044,738 and opts to use the deceased spouse's unused portion of $1,123,271, making the total unified/applicable credit amount $2,854,071.(That's the maximum unified/applicable credit of $1,730,800 + $1,123,271 DSUE, which is more than the estate tax due), thus bringing the total estate tax due to $0.00.

If a taxpayer reports a Date of Death in 2012, but files on a 2011 or prior form, edit a "d" to the right of Line 9 and continue processing.

Line 9a - (2012 and subsequent) Basic exclusion amount. Accept taxpayer's entry.

Line 9b - (2012 and subsequent) Deceased spousal unused exclusion (DSUE) amount from predeceased spouse(s). This figure is carried forward from Part VI - Portability of Deceased Spousal Unused Exclusion, Section D.

Line 9c is Restored Exclusion Amount. Accept Taxpayers figures.

Line 9d - (2016 and subsequent) Applicable exclusion amount. This figure is the total of Line 9a, Line 9b and Line 9c.

Line 9e - (2016 and subsequent) Applicable credit amount. Verify taxpayer's entry on Line 9e with the Unified/Applicable Credit Table below. See IRM 3.11.106.18.7.2, Maximum Unified/Applicable Credit - Form 706, to make sure entry is correct to the decedent’s year of death. If entry does not match decedent’s year of death, edit correct amount.

≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

See paragraph 12a above for 2011 and subsequent Forms 706 (with a Date of Death in 2011, 2012, etc.). 2011 and subsequent amounts can be greater than table amount because of the Portability election. Allow the greater amount and continue processing.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Line 11 - Allowable unified/applicable credit. This is computed by subtracting Line 10 (Adjusted unified/applicable credit) from the Line 9e (Restored exclusion amount/applicable credit amount). Accept the taxpayer's entry.

If blank, zero, dash, or none but there are entries on Line 9e and/or 10, edit the appropriate amount to Line 11 by subtracting Line 10 from Line 9e.

Line 12 - Balance after unified/applicable credit. Accept taxpayer's entry.

Line 13 - Credit for foreign death taxes. Accept taxpayer's entry.

Line 14 - Credit for tax on prior transfers. Accept taxpayer's entry.

Line 15 - Total credits for (202412 and prior) or Credit for Pre-1977 Federal Gift Taxes Under Section 2012 for (202501 and later). Accept taxpayer's entry.

Line 16 - Net estate tax for (202412 and prior) or Marital credit under the 1995 Canadian Protocol for (202501 and later). Accept taxpayer's entry.

Line 17 - Generation-skipping transfer (GST) tax for (202412 and prior) or Total credits for (202501 and later). Accept taxpayer's entry.

Line 18 - Total transfer tax. If Line 18 for (202412 and prior) or Line 20 Net Estate Tax for (202501 and Late) on the form is blank and there are entries on Lines 16 through 17 for (202412 and prior) or Lines 18 and 19 for (202501 and later), compute and edit Line 18 for (2024 and prior). Line 20 Net Estate Tax for (202501 and later). Accept taxpayer’s entry.

Line 19 - prior payments for (202412 and prior) or Generation-Skipping Transfer (GST) taxes for (202501 and later). Accept taxpayer's entry.

Line 20 - Balance due (or overpayment). Edit negative amounts in brackets (refunds) only if the taxpayer does not indicate a negative amount with brackets or a minus (-) sign. IRM 3.11.106.18.7.4 Green Rocker Amount for Line 20 for (202412 and prior). For 202501 and later, Total Transfer Taxes. Add Lines 18 and 19. If Line 20 on the form is blank and there are entries on Lines 18 and/or 19, compute and edit Line 20.

Delete penalty and interest from the total and edit the balance due to the left of the original entry. Otherwise, accept taxpayer's entry.

Line 21 - prior payments. Accept Taxpayers figures.

Line 22 Tax Due 202501 and later: If Line 22 is blank and no entries in Line 23a (Overpayment) subtract Line 20 from Line 21, If Tax Due enter it in Line 22. If Line 22 has a entry, Accept Taxpayer’s entry.

Line 23a - Overpayment 202501 and later: If Line 23a is blank and Line 21 is more than Line 20, subtract Line 20 from Line 21. Edit negative amounts in brackets (refunds) only if the taxpayer does not indicate a negative amount with brackets or a minus (-) sign. Accept Taxpayer Figures.

Line 23b - Routing Transit Number (202501 and later), Accept taxpayer entry.

Line 22c - Type of Depositor Account (202501 and later). Accept taxpayer entry

Line 22d - Depositor Account Number (202501 and later). Accept taxpayer entry.

The following table contains information for the unified/applicable credit and exemption equivalent for estates of citizens and residents:

Form 706 Unified/Applicable Credit and Basic Exclusion Amounts

Year of Death

Applicable Credit Amount

Basic Exclusion Amount

2025

$5,541,800

$13,990,000

2024

$5,389,800

$13,610,000

2023

$5,113,800

$12,920,000

2022

$4,769,800

$12,060,000

2021

$4,625,800

$11,700,000

2020

$4.577,800

$11,580,000

2019

$4,505,800

$11,400,000

2018

$4,417,800

$11,180,000

2017

$2,141,800

$5,490,000

2016

$2,125,800

$5,450,000

2015

$2,117,800

$5,430,000

2014

$2,081,800

$5,340,000

2013

$2,045,800

$5,250,000

2012

$1,772,800

$5,120,000

2011

$1,730,800

$5,000,000

See IRM 3.11.106.18.7.1, (12a) above for 2011 and subsequent Form 706, (with a Date of Death in 2011, 2012, etc.). 2011* and subsequent amounts can be greater than table amount because of the Portability election. Allow the greater amount and continue processing.

The Qualified Family-Owned Business Interest Deduction was repealed for decedent’s dying on or after January 1, 2004.

Green-Rocker Money Amount on Line 20 for (202412 and prior) or Line 22 for (202501 and later). The purpose of green rocker tax due amounts is to show that money was received with the return. If the amount contains penalty and/or interest:

X-out the rocker amount.

Delete the penalty and interest from the total.

Edit the balance due to the left of the original entry.

Edit a received date if one is not present (must have a received date, especially if it's a Federal Tax Deposit (FTD).

Under certain conditions, the (IRC) provides relief from immediate payment of estate tax due on returns of deficiency determinations. The deferred portion can constitute all or only a portion of tax due. Form 4768, Application for Extension of Time to File a Return and/or United States (and Generation -Skipping Transfer) Taxes, is used to apply for an extension of time to file and/or time to pay.

If

Then

Balance due return is filed with an original Form 4768, Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes attached and the signed date is same date, or within a short timeframe of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return signed date and no indication of approval or disapproval)

Indicate at the top of the return "Extension Pending" .

Forward original Form 4768, Application for Extension of Time to File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes, along with the explanation for requesting the extension, to Cincinnati Centralized Specialty Tax, Estate and Gift Tax Mail Stop 824G.

Keep a copy of the Form 4768, Application for Extension of Time to File a Return and/or United States Estate (and Generation-Skipping Transfer) Tax Return, and explanation with the Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

Make sure the received date is on all detached forms.

The following information pertains to (IRC) Section 6163:

If

Then

Balance due return is filed with statement attached requesting an extension of time to pay under (IRC) Section 6163 reversionary or remainder interest

Photocopy Pages 1, 2, and 3 of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return for (202412 and prior) or Pages 1,2,3 and 4 for (202501 and later) and route to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G.

Make sure the received date is on all detached forms.

Balance due return is filed with no statement attached and the box (Part III, Line 4) is checked "YES"

Photocopy Pages 1, 2, and 3 of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return for (202412 and prior) or Pages 1,2,3 and 4 for (202501 and later) and route to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G.

Make sure the received date is on all detached forms.

Balance due return is filed with approved Form 4768, Application for Extension of Time to File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes filed under (IRC) Section 6166 or 6163, and a PIC (Payment Indicator Code) 1

Photocopy the first page of the return, Form 4768, Application for Extension of Time to File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes and route to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G.

Make sure the received date is on all detached forms.

The following information pertains to a taxpayer's request for installment payments under (IRC) 6166:

If

Then

There is a balance due on Page 1 202412 and prior or page 2 for (202501 and later) of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return and either of the following conditions are present:

"Yes" box on Line 3 and/or, Part III, Line 4, Part of Form 706, is checked

(IRC) Section 6166 is noted anywhere on the return or an attachment

Edit Action Code 370 on the return and reject to Error Resolution (ERS) In addition, Code and Edit will have forms batched/re-batched, with like forms (706 with 6166 election) and numbered with a Special 706 DLN, using assigned Block Numbers of 800-899 and a Block ID of 706/6166, per IRM 3.10.73.8.2 . All returns with the mentioned Special DLN’s should be sent to SBSE Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G on Form 4227, Intra-SC Reject or Routing Slip.

Cincinnati Centralized Specialty Tax will prepare Form 4349, Computation of Estate Tax Due with Return and Annual Installment.

Figure 3.11.106-7

Please click here for the text description of the image.

A one- digit code called "Payment Indicator Code (PIC)" is used to identify the various types of payments. Edit this code in the right margin of Part II Line 20, for (202412 and prior) or Line 22 for (202501 and later).

Valid codes are "0" and "1" . This is a required entry on every Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

Do not edit a PIC on amended Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

Type of Return

Code

Payment Indicator

Any

0

No Installment Privileges. Payment Indicator will follow normal BMF settlement procedures and will generate a CP 191.

Balance Due Only

1

Requests (IRC) Section 6166 or 6163.Form 706, Part III, Line 3 or Line 4 checked "YES" .

Edit a PIC on every Form 706, in the following priority:

Type of Return

(IRC) Section 6166 or 6163 (Part III, Line 3 or Line 4 or attachment)

Code

Balance Due Only

Yes

1

Any

No

0

Code "1" (Balance due return only) when:

Taxpayer requests installment privileges under (IRC) Section 6166.

Taxpayer requests payment postponed under (IRC) Section 6163.

Code "0" when (4) above does not apply.

The only PIC’s now used will be "0" or "1" . With the new transaction code used by Cincinnati - Centralized Specialty Tax Campus Estate and Gift, there will no longer be a need for PIC "2" or "3" .

See IRM 3.11.106.7, Penalty and Interest Code, for description of codes.

See IRM 3.11.106.18.3.1, Due Date Form 706, for description of due dates.

In the past, Form 706, was only coded and edited on Page 1 of the return. Beginning in tax year 2013 (PY 2014), Part VI, Section C of the return will also need to be coded and edited. Changes were made to the DSUE calculation in a circulation of Form 706 received on September 23, 2013. As a result of the increase in the tax rates under ATRA, dividing the total gift tax paid or payable by 40% caused an error in the DSUE calculation (due to the increase in the tax rate). More changes were also incorporated into the instructions, specifically the Line 7 worksheet which is submitted with the Form 706 (the worksheet is NOT edited or transcribed). Line 2 was changed to "Reserved" , so Code and Edit should edit a zero on Line 2 of Form 706 Page 4, Part VI, Section C. Due to budget constraints, programming was not able to be completed so this is the work around. ISRP is going to be instructed to field release through the line (so) "0" will populate on the Error Resolution System (ERS) screens. Error Resolution System (ERS) is instructed to make sure the line shows zero.

These instructions cover the processing of Form 706-NA.

Form 706-NA is filed at Kansas City Submission Processing Center (KCSPC).

The following information pertains to filing requirements:

If the decedent died after December 31, 1976, Form 706-NA is required for estate of nonresident not a citizen of the United States if part of the gross estate situated in the U.S. exceeded $60,000 at Date of Birth reduced by $60,000 at Date of Death (DOD) reduced by amount of adjusted taxable gifts per (IRC) Section 2001(b) made by decedent after December 31, 1976, or aggregate amount allowed as a specific exemption per (IRC) Section 2521(b) (before its repeal by the Tax Reform Act of 1976) with respect to gifts made by decedent after September 8, 1976.

If a pre-1977 Form 706-NA has been filed, attach current revision of form to return and edit data for transcription lines onto current form.

Examiners will perform the following preliminary examination:

If

Then

Decedent is an "expatriate"

The return is not subject to tax rates of a nonresident not a citizen of the U.S., but subject to Table A, Form 706, "expatriate" is one who lost U.S. citizenship within 10 years before Date of Death (DOD) and for whom it is reasonable to assume that the main purpose in doing so was to avoid U.S. taxes.

Part III, Line 6b is checked "yes"

See IRM 3.11.106.19.11, Expatriate Indicator - Form 706-NA.

A person who is a citizen of the U.S., by reason of birth in the U.S., established residence in a possession of the U.S. and died after September 2, 1958.

This can be verified by checking “Nationality” and “Citizenship Domicile at time of death” blocks.

Under (IRC) Section 2208, this person is considered a U.S. citizen.

The estate is subject to tax imposed by (IRC) Section 2001 and the Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return should be used instead of Form 706-NA United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States.

Edit Action Code 610.

If it is a numbered return, use Form 4227, Intra-SC Reject or Routing slip and indicate the return should be renumbered as a Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

If it is an unnumbered return, give it to your manager for inclusion in the Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return batch. Delete NA from title of the form.

Death tax treaties (or, for Canada, an income tax treaty with a death tax protocol) are in effect with Australia, Austria, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Netherlands, South Africa, Sweden, and United Kingdom.

If items on the return are based on the provisions of a death tax treaty or protocol, it may be necessary for the filer to attach a statement disclosing that it is treaty based. However, if a statement is not attached, continue processing.

The following information pertains to the due date of Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States.

If decedent died before January 1, 1971, the return is due the 15th calendar month after decedent’s death.

If decedent died after December 31, 1970, the return is due the day of the ninth calendar month after the decedent’s death.

An application for extension of time for filing Form 4768 or Pay United States Estate (and Generation-Skipping Transfer) Taxes may be granted even if application is made later than 9 months after Date of Death. Unless Executor is abroad, extended due date for filing estate tax return may not be later than 15 months from date of decedent’s death.

Receipt and Control will sort and forward Form 4768, and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes directly to the Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G. If a Form 4768, and/or Pay United States Estate (and Generation -Skipping Transfer) Taxes is received in Code and Edit, route to Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G.

The following information pertains to payment of tax:

Unless deferred payment under (IRC) Section 6161(a) or 6163(b) has been granted, tax is due when the return is filed.

Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, filers do not have the same privilege that Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, filers have for installment payment of balance due under (IRC) Section 6166.

The entity of the return includes the name, address and Taxpayer ID Number.

The entity of the return includes the name, address and Taxpayer ID Number.

Box 1a- Decedent’s First Name and Middle Initial

Box 1b- Decedent’s Last Name

Box 2- Decedent’s US Taxpayer ID Number (if any)

Box 6- Decedent’s Date of Death

Box 7a- Decedent’s Date of Birth

Box 9a- Name of Executor

Box 9b- Executor’s Address (202412 and prior) or Line 9e (202501 and later)

If any of the above are missing or illegible, search through attachments. Edit findings in the appropriate area. For Missing taxpayer ID IRM 3.11.106.19.6.2 Taxpayer ID Number (SSN, TIN or ITIN), For missing Executor Information IRM 3.11.106.19.6.3 Executor’s Identity

Underline the name control as stated below. Refer to Document 7071, Name Control Job Aid for Individual Master File (IMF) Taxpayers, for specific Instructions:

If

Then

Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, valid characters are: alpha, hyphen or blank

Underline the decedent’s first four digits of the last name.

Blanks are present

Blanks may be present only in the last 2 positions of name control.

The following information pertains to the executor’s name:

If

Then

There are 2 or more executor’s names listed on the return

Underline the first executor’s name. Circle out remaining name(s).

Editing the name of Executor

Edit the name of Executor on Box 9a.

Edit the name of the Executor on Box 11a (2013 and Prior) if the Executor is outside the U.S.

If 1. and 2. above do not apply, edit the attorneys name for the estate on Box 10a if inside the U.S. and Box 12a if outside the U.S. for 2013 and Prior and Line 10a for 2014 and subsequent.

The following information pertains to the executor’s address:

If

Then

Editing the address

Edit the address on Box 9b.

A PO Box and street address are present

Perfect the address.

Pull the return for research/input of TC 014 by the Code and Edit Research Clerk.

More than one street address is present

Underline the first address, City, State and ZIP Code. Circle out remaining address(es).

Address contains information other than a street address or PO Box

Underline the complete address, abbreviate as much as possible.

Edit Major City Codes, if applicable.

See Exhibit 3.11.106-33, State Codes and ZIP Codes for determining ZIP Code.

The following information pertains to examining the return:

Name of decedent and minimum address of decedent (name of country) at time of death.

The following information pertains to the Taxpayer Identification (ID) Number (Social Security Number (SSN), Taxpayer Identification Number (TIN), or Individual Taxpayer Identification Number (ITIN):

If

Then

A return does not contain an SSN, TIN, or ITIN

Route to Entity Control, for all returns without SSN’s, TIN’s, or ITIN’s using.

Attach Form 4227, Intra-SC Reject or Routing Slip and route to Entity Control.

Most returns will be blank or have invalid numbers (such as a Canadian SSN).

Return is numbered

Edit Action Code 320.

Attach Form 4227, Intra-SC Reject or Routing Slip and route to Entity Control.

Return is unnumbered

Remove from the pack, attach Form 4227, Intra-SC Reject or Routing Slip and route to Entity Control.

The following information pertains to the executor’s identity:

If

Then

U.S. Executor is not present (name and complete address of Executor in the U.S. should be shown on all returns)

1. Check attachments for missing information. If not found:

Use the foreign Executor

If there is not a foreign Executor, use the U.S. Attorney.

If no U.S. Attorney, use the foreign attorney.

If missing, use Action 211 for correspondence.

If no reply, use CCC "3" - Edit this code when no reply is received for taxpayer correspondence to suppress credit interest from being generated.

The following information pertains to examining signatures on returns:

If

Then

Examining for missing signature

There must be at least one Executor signature for property held in the U.S.

Attorney's name and address are shown in block of entity section of return

Attorney must also sign the return.

Accept foreign executor’s signature.

Use Action code 225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns), or 226 International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) and Letter 3463C Correspondex Letter, for missing signature. Request that reply be sent to Examination Division.

The following types of signatures are not valid for Estate and Gift returns:

Faxed signatures

Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, faxed signatures are acceptable.

Electronic signatures

Docusign digital signatures

Typed font Signature

"IF" one of the following returns are mailed on or after August 28, 2020, accept a digital signature.

706, United States Estate (and Generation-Skipping Transfer) Tax Return

706-A, United States Additional Estate Tax Return

706-GS(D), Generation-Skipping Transfer Tax Return for Distributions

706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust

706-GS (T), Generation-Skipping Transfer Tax Return for Terminations

706-QDT, United States Estate Tax Return for Qualified Domestic Trust

706 Schedule R-1, Generation Skipping Transfer Tax

706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States

709, United States Gift (and Generation-Skipping Transfer) Tax Return

709-NA, United States Gift (and Generation Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States

The following information pertains to Date of Birth (DOB):

If

Then

Date of Birth is 1900 or earlier

Edit "1900" for year and edit month and date of month.

Edit DOB in MMDDYYYY format.

Date of Birth is missing, or obviously wrong

Check attachments for correct date.

If valid date is found, edit date in Date of Birth (Box 7a).

If correct date is unobtainable, leave blank and circle incorrect date.

Check for coding and transcription then follow chart below.

If

Then

Date of Death is missing

Check death certificate for Date of Death.

Edit Date of Death in MMDDYY format.

No death certificate is attached

Give to lead to research IDRS for Date of Death.

If research doesn’t show Date of Death on IDRS

Initiate action, prepare Form 3696, Correspondence Action Sheet

Use Action Code 211, if a numbered return.

Request missing document using Letter 3463C correspondence letter paragraph k asking for Death Certificate.

Attach Form Letter 3696, Correspondence Action Sheet to the front of the return below the entity area.

Make sure you code the entire return before issuing correspondence and make sure when corresponding you include everything you need to correspond for.

See IRM 3.11.106.13, Receive Date, for information regarding received date editing.

Documents and letters will be enclosed with Form 706-NA. Correspond on numbered returns using Action Code 211 and approved Campus Correspondex. Examine Page 2, Part III of Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States for the following items.

If Question 1a, "Did the decedent die testate?" , is checked "Yes" and a copy of the will is not attached, continue processing.

The following information pertains to balance sheets and profit and loss statement:

If

Then

Part III, answer to Box 3 is checked "Yes"

Balance Sheet and Profit & Loss Statement must be submitted.

Correspond using approved Campus Correspondex only if requesting other information.

Otherwise, notate at the top of the return. (Balance Sheet and/or Profit & Loss Statement Missing)

Examination will initiate action to obtain missing documents, if necessary.

The following information pertains to transfers:

If

Then

Part III, answer to box 7 or 8 is checked Yes

Schedule G (Form 706, Return must be attached.

Schedule G Form 706, is not attached

Correspond for Schedule G.

Make sure you code the entire return before issuing correspondence. Be sure to request all needed items in your correspondence.

The following information pertains to expatriates:

If the box on Part III, Line 6b, is checked Yes, the decedent is considered an Expatriate and is not subject to the rates of a nonresident (not a citizen of the U.S.) if the decedent died prior to November 11, 1990.

The following information pertains to missing documents:

If

Then

Documents are missing

Initiate action, prepare Form 3696, Correspondence Action Sheet

Use Action Code 211, if a numbered return.

Request missing document using approved Campus Correspondex.

Attach Form 3696, Correspondence Action Sheet, and attach to the front of the return in the entity area.

Continue processing return and do not float return to top of block.

See IRM 3.11.106.10.5.1, Amended Returns.

Manual math verification of the return is not required. The computer will check the transcribed totals and any changes or corrections will be performed by Error Resolution System (ERS) examiners.

Correspond for supporting schedules, if missing, for estates that have a gross estate located in the United States of $60,000. See Schedule B, Line 1 of Form 706-NA.

All money entries on Form 706-NA, can contain up to fifteen numeric characters and are edited in dollars and cents. All money entries must be positive.

Balance Due/Overpayment-negative amounts should be edited with brackets. Also, Line 3 can be a negative amount as well as a positive amount.

Line 1 - Taxable estate. Verify that the amount is carried forward from Schedule B, Line 9, correctly.

Line 2 - Total taxable gifts. Accept taxpayer's entry.

Line 3 - Total. Add Lines 1 and 2. If Line 3 is a negative entry, bracket the amount only if the taxpayer does not indicate a negative amount with brackets or a minus (-) sign.

Line 4 - Tentative tax on Line 3. Accept taxpayer's entry.

Line 5 - Tentative Tax on Line 2. Accept taxpayer's entry.

Line 6 - Gross estate tax. Accept taxpayer's entry.

Line 7 - Unified/Applicable credit. Accept taxpayer's entry.

Line 8 - Balance after unified/applicable credit. Accept taxpayer's entry.

Line 9 - (202412 and prior): Other credits (202501 and later) Credit for pre-1977 federal gift taxes under section 2012.

Tax Year Form 706-NA

Instructions for Line 9

(202412 and prior), Other Credits

Verify that the amount brought over from the schedule is correct.

(202501 and later), Credit for pre-1977 federal gift taxes under section 2012.

Accept taxpayer’s entry.

Line 10 - (202412 and Prior) Credit for tax on Prior transfers. (202501 and later) Marital credit under the 1995 Canadian Protocol.

Tax Year Form 706-NA

Instructions for Line 10

(202412 and prior), Credit for tax on prior transfers.

Verify that amount on Line 10 is correctly brought forward from Schedule Q, Form 706

(202501 and later), Martial credit under the 1995 Canadian Protocol

Accept taxpayer’s entry.

Line 11 - (202412 and prior) Total credits, (202501 and later) Credit for Tax on prior Transfers.

Tax Year Form 706-NA

Instructions for Line 11

(202412 and prior), Total Credits

Accept Taxpayer’s entry.

(202501 and later), Credit for tax on prior Transfers

Verify that amount on Line 10 is correctly brought forward from Schedule Q. Accept taxpayer's entry.

Line 12 - (202412 and prior), Net estate tax. (202501 and later), Total Credits.

Tax Year Form 706-NA

Instructions for Line 12

(202412 and prior), Net Estate Tax

Accept taxpayer’s entry.

(202501 and later), Total Credits

Accept taxpayer’s entry.

Line 13 - (202412 and prior), Total generation-skipping transfer tax. (202501 and later), Net Estate Tax.

Tax Year Form 706-NA

Instructions for Line 13

(202412 and prior), Total generation-skipping transfer tax,

Verify that amount is correctly brought forward from Schedule R, Form 706 (Part II, Line 10)

(202501 and later), Net Estate Tax

Accept taxpayer's entry.

Line 14 - (202412 and prior), Total transfer taxes. (202501 and later), Total Generation Skipping Transfer Tax.

Tax Year Form 706-NA

Instructions for Line 14

(202412 and prior), Total transfer taxes

Accept taxpayer’s entry.

(202501 and later), Total Generation - Skipping Transfer tax.

Verify that amount is correctly brought forward from Schedule R, Form 706 (Part II, Line 10).

Line 15 - (202412 and prior), Earlier payments. (202501 and later), Total Transfer Tax.

Tax Year Form 706-NA

Instructions for Line 15

(202412 and prior), Earlier payments

If blank, leave blank; otherwise, accept taxpayer's entry.

(202501 and later), Total Transfer taxes

Accept taxpayer's entry.

Line 16 - (202412 and prior, Balance Due/Overpayment. (202501 and later), prior Payment.

Tax Year Form 706-NA

Instructions for Line 16

(202412 and prior), Balance Due/Overpayment

Edit negative amounts in brackets (refunds) only if the taxpayer does not indicate a negative amount with brackets or a minus (-) sign.

(202501 and later), Earlier Payments

If blank, leave blank; otherwise, accept taxpayer's entry.

Line 17 - (202501 and later), Tax Due, Accept taxpayer’s figures.

Line 18a - (202501 and later), Overpayment, Edit negative amounts in brackets (refunds) only if the taxpayer does not indicate a negative amount with brackets or a minus (-) sign.

Line 18b - (202501 and later),Routing Transit Number, Accept taxpayer entry.

Line 18c - (202501 and later),Type of Depositor Account, Accept taxpayer figures.

Line 18d - (202501 and later), Depositor Account Number. Accept taxpayer figures.

Deferment of payment will be granted similar to Form 706, (See IRM 3.11.106.18.8, Deferment of Payment (Extension of Time to Pay) Form 706.

Use a one- digit Payment Indicator Code (PIC) to identify returns where a deferment was submitted.

If the taxpayer has no balance due or made a request for installment payments or has not requested an extension or a refund, edit code "0" .

Since there cannot be any (IRC) Section 6166 installments and Treasury Bonds are no longer being accepted as payment of estate tax by Examination, the only payment indicator codes applicable to Form 706-NA, are 0 and 6.

Edit code to the right of the Balance due line on Form 706-NA. This is a required entry on Form 706-NA.

Do not edit a PIC on amended Form 706-NA,

Payment Indicator Codes:

Code

Condition

0

On all 2005 and subsequent returns, or on 2004 prior year returns and entries on Lines 17,18 or 19.

6

On a 2004 and prior year returns and an entry on Line 19.

Insert Penalty and Interest (P&I) Code in upper right margin of the return. See IRM 3.11.106.7, Penalty and Interest Code, for description of codes. See IRM 3.11.106.19.3, Due Date Form 706-NA, for due dates.

The following information pertains to the expatriate indicator:

If

Then

The box on Part III, Line 6b is checked "Yes" if the decedent died prior to November 11, 1990.

Place a code "1" preceded by "EXP" in the lower left-hand margin of Page 1.

(IRC) Section 2208 or 2001 is notated

The Form 706-NA, must be converted to a Form 706.

A numbered return

Edit Action Code 610.

Attach Form 4227, Intra-SC Reject or Routing Slip and route to be batched and renumbered as a Form 706.

An unnumbered return

Convert Form 706-NA, to a Form 706, and route to be batched and processed as a Form 706,

The following information pertains to processing Form 706-A.

As a result of the Tax Reform Act of 1976, Public Law 81-666, (IRC) 2032A permits the Executor of an estate, if the decedent died after December 31, 1976, to make an election to value the decedents real property on the basis of its actual use, rather than its fair market value determined according to its highest and best, or most valuable use.

(IRC) Section 2032A also provides that all persons with an interest in the property must enter into a written agreement consenting to personal liability for any additional tax imposed in the event the property is sold or disposed of, or no longer qualifies for the special farm or business use.

An additional estate tax is imposed if the disposition or cessation was within 15 years after the decedent’s death, if the decedent died before January 1, 1982, or within 10 years of decedent’s death if the decedent died after December 31, 1981 (and before the death of the qualified heir), the qualified heir disposes of any interest in the specially valued real property (other than to a member of their family), or the qualified heir ceases to use the specially valued real property. The tax is not imposed more than once for any one interest.

The qualified heir must file Form 706-A, if any additional estate tax is due. Form 706-A, must be filed within 6 months after the taxable disposition or cessation of the qualified use unless an extension of time has been granted.

For tax periods after 8112 all taxpayers who have exchanges or involuntary conversions, even if they are nontaxable, must file Form 706-A.

The 15 - year rule for the estates of decedent’s dying before 1982 expired in 1997. Lines 16 through 19 that were on the March 1997 Form 706-A, Return have been deleted. These lines were used only if the decedent died before January 1, 1982, and the taxable event occurred more than 120 months after the commencement date. The Form 706-A, is no longer valid.

Form 4768 may be filed to apply for an extension of time to file.

All Form 706-A returns are filed at KSCPC.

Examine all returns for timeliness, completeness, name and address, Social Security Number (SSN) of heir, decedent’s name, social security number and Date of Death. Document Code 84 and MFT 53 have been assigned for use with Form 706-A, United States Estate Additional Tax Return

Any adjustment to the original return which is disclosed either by a corrected return or in letter form will be forwarded to Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G for its review.

Form 706-A, United States Additional Estate Tax Return, should be filed within 6 months after the specially valued property ceases to qualify for the reduced valuation. This is the time when the payment is required to be made.

The tax period is determined by the date on which the qualified heir disposed of any interest in the specially valued property.

Check the return and attached documents for date on which the qualified heir disposed of any interest in the specially valued property or ceased to use (for the qualified use) the specially valued real property.

Edit the date of disposition (from Page 2, Schedule A, Column C) in the top center of the form in YYYYMM format.

If the tax period cannot be determined, route the return to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G.

The following information pertains to entity verification:

If

Then

Part I-Entity Data

Verify that the heir's name, address, and social security number and the decedent’s name, social security number and Date of Death was entered in Part I of Form 706-A.

Heir's name, address or social security number or the decedent’s name, social security number or Date of Death is missing on the return and cannot be found on attachments

Research IDRS for missing information.

If information not found on IDRS, send return to Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G.

Form 706-A, should be reviewed to determine if the return and schedules were accurately completed. Manual math verification of the return is not required.

Cincinnati - Centralized Specialty Tax Campus Estate and Gift will correspond for supporting schedules, if missing, for estates.

If

Then

Schedule A-Disposition of Specially Valued Property or Cessation of Qualified Use

Verify that the total amounts of Schedule A Columns D and E were entered on Page 1, Part II, Lines 12 and 13 respectively for 202412 and prior.

Verify that the total amounts of Schedule A Line 4, Columns G and H, were entered on Part II, Lines 12 and 13 respectively for 202501 and later.

Schedule B, Involuntary Conversions or Exchanges

Verify that the total amount from Column B was entered on Page 1, Part II, Line 16 for 202412 and prior.

Verify that the total amount from Schedule B Line 5 was entered on Part II, Line 16 for 202501 and later.

If there are no entries on Lines 16, 17 or 18, edit Line 15 on Line 19.

Remember you will compute lines that are blank and accept taxpayer’s figure if they have entered them.

The following information pertains to penalty and interest:

If

Then

There is a green-rocker amount stamped or printed on the form (indicating that a remittance was submitted with the form)

Compare it against the amount on Line 19. If that amount is greater than Line 19 (additional estate tax due), it is possible that the amount may be interest at the underpayment rate established under (IRC) Section 6621 for the period beginning on the date the estate tax liability was due and ending on the date such additional estate tax is due.

The green-rocker amount is greater than the amount on Line 19

Edit on the dotted line, to the left of Line 19, "TC-340" and the amount totaling the difference.

If the green-rocker amount is $455.00, and the amount on Line 19 is $405.00, then you would edit "TC-340 - $50.00" to indicate a restricted interest assessment of $50.00.

After editing, follow the procedures in IRM 3.11.106.21.5, Tax Period - Form 706-D.

After all entries have been examined and verified, and if no correspondence is needed for the taxpayer to complete the return, route to Numbering.

The following information pertains to processing Form 706-D, United States Additional Estate Tax Return - Under Code Section 2057.

A provision within the Internal Revenue Service Restructuring and Reform Act of 1998 requires a qualified heir to report and to pay additional estate tax, if:

Any "taxable event" occurs to the qualified family- owned business interest within 10 years of the decedent’s death, and

The decedent’s death was later than December 31, 1997.

The additional tax is computed on Form 706-D, United States Additional Estate Tax Return - Under Code Section 2057. The tax is due 6 months after the taxable disposition, disqualifying act, or cessation of qualified use of the Qualified Family- Owned Business Interest (QFOBI).

(IRC) Section 2057 is repealed for individuals dying after January 1, 2004.

A "taxable event" is defined as follows:

The qualified heir disposes of any portion of their interest in the family- owned business, other than by disposition to a member of the qualified heir's family or through a qualified condition contribution under (IRC) Section 170(h).

The qualified heir ceases to meet material participation requirements, i.e., if neither the qualified heir nor any member of their family has materially participated in the trade or business for at least 5 years or any 8- year period.

The principal place of business of the qualified family- owned business ceases to be located in the United States.

The qualified heir loses United States citizenship and neither a qualified trust was created nor a security arrangement made.

Form 4768, Application for Extension of Time to File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes may be filed to apply for an extension of time to file.

Form 706-D, United States Additional Estate Tax Return, Under Code Section 2057, returns are filed at KSCPC.

Examine all returns for timeliness, completeness, name and address, social security number of heir, decedent’s name, social security number and Date of Death. Document Code 84, MFT 53, and a blocking range of 650-699 have been assigned for use with Form 706-D, United States Additional Estate Tax Return, Under Code Section 2057’.

Any adjustment to the original return that is disclosed either by a corrected return or in letter form will be forwarded to the Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G for its review.

Form 706-D, Under Code Section 2057, should be filed within 6 months after the taxable disposition, disqualifying act, or cessation of qualified use of the Qualified Family- Owned Business Interest (QFOBI). This is the time when the payment is required to be made.

The tax period is determined by the date on which the qualified heir disposed of any interest in the real property.

Check the return and attached documents for date on which the qualified heir disposed of any interest in the real property or ceased to use (for the qualified use) the real property, or performed a disqualifying act of the real property. Usually, this date can be found on Page 2, Schedule A, Column (C).

Edit the date of disposition (from Page 2, Schedule A, Column C) in the top center of the form in YYYYMM format.

If the tax period cannot be determined, route the return to Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G.

The following information pertains to entity verification:

If

Then

Part I - Entity

Verify that the heir's name, address, and social security number and the decedent’s name, social security number and Date of Death was entered in Part II of Form 706-D, Under Code Section 2057.

If the heir's name, address or social security number or the decedent’s name, social security number or Date of Death is missing on the return and cannot be found on attachments

Research IDRS for missing information.

If information not found on IDRS, send return to Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G.

Form 706-D, Under Code Section 2057, should be reviewed to determine if the return and schedules were accurately completed. Manual math verification of the return is not required.

Cincinnati - Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G will correspond for supporting schedules, if missing, for estates.

If

Then

Schedule A-Disposition of Qualified Family-Owned Business Interest, Failure to Materially Participate, or Disqualifying Act (Taxable Under (IRC) Section 2057(f)(1)

Verify that the total amounts were entered correctly from Column (D) to Page 1, Part II, Line 12.

Schedule B, Involuntary Conversions or Exchanges

Verify that the total amount was entered from Column (C) to Page 1, Part II, Line 11.

If there are no entries on Lines 11, 12, 13 or 14, edit Line 10 on Line 15.

Remember you will compute lines that are blank and accept taxpayer’s figure if they have entered them.

The following information pertains to penalty and interest:

If

Then

There is a green-rocker amount stamped or printed on the form (indicating that a remittance was submitted with the form)

Compare it against the amount on Line 15. If that amount is greater than Line 15 (additional estate tax due), the amount should be interest at the underpayment rate established under (IRC) Section 6621 for the period beginning on the date the estate tax liability was due and ending on the date such additional estate tax is due.

Edit on the dotted line, to the left of Line 15, "TC-340" and the amount totaling the difference.

If the green-rocker amount is $455.00, and the amount on Line 15 is $405.00, then you would edit "TC-340 - $50.00" to indicate a restricted interest assessment of $50.00.

After editing, follow the procedures in IRM 3.11.106.21.5, Tax Period - Form 706-D.

If no interest is included in the payment

Route the return to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G

After all entries have been examined and verified, and if no correspondence is needed for the taxpayer to complete the return, route to Numbering.

(IRC) Section 2603 (a) (2) provides that the Generation-Skipping Transfer (GST) tax imposed on a direct skip from a trust is to be paid by the trustee. Schedule R-1 (Form 706) serves as a payment voucher for the trustee to remit the GST tax to the Internal Revenue Service.

Examine all returns for timeliness and completeness of all entity data. If information is missing, then perfect the document for missing information as appropriate prior to processing. Reach out to Estate and Gift Tax Policy for advice on how to process. Schedule R-1 will be processed as a non-master file account using Document Code 85, MFT 53 and blocking series 590 through 599.

The Schedule R-1 (Form 706) is due 9 months after the decedent’s Date of Death.

If the date of death is between January 1, 2010, and December 17, 2010 (inclusively); the return due date is September 19, 2011, as mandated in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (PL 111-312).

The following information pertains to math verification:

If

Then

Information is missing

Contact Executor of the estate.

Where possible, verify amounts on Lines 1 through 6 on the schedule(against the items listed in Part I. Computation of the GST Tax on the Direct Skip (Description of property interests subject to the direct skip).

The following information pertains to penalty and interest:

If

Then

Using the due date to determine timeliness

Decide whether penalties and interest need to be assessed.

It is determined that penalty and interest assessments (or any other adjustment actions) are required

Prepare Form 3465, Adjustment Request, as instructed. Route the return to Kansas City Accounting, Mail Stop 6263 P- 6.

Receipt and Control will send all Schedule R-1’s (Form 706) with remittance to Deposit Activity, who will stamp the schedule with a Non Master File (NMF) number and deposit the remittance. After numbering, the return will be sent to Code and Edit for math verification and then to Kansas City Accounting, Mail Stop 6263 P6 for further processing.

New transcription has been requested for processing year 2013 and subsequent. Staple a Post-It (sticky) to pages 1 through 5 in sequential order to facilitate transcription entry. New transcription has been requested for processing year 2014 and subsequent. Staple a Post-It (sticky) to pages 1 through 10 in sequential order to facilitate transcription entry. We are using this method so large returns with several pages (perhaps a will or trust) between page 1 through 5 can be identified quickly by Integrated Submission and Remittance Processing (ISRP). Stapling the Post-It (sticky) to the respective page will relieve the burden of having to disassemble the returns.

A tax is imposed on the lifetime transfer of property by an individual. It is imposed upon the donor, the person making the transfer. The chief purpose of the gift tax is to deter the making of gifts to avoid estate taxes. Before December 31, 1976, gift tax rates were only three-fourths of estate tax rates; however, there is now a unified rate for both taxes.

A gift is a voluntary transfer of property by one to another without consideration or compensation. The tax law applies when the donor has parted with possession and control and has no power to change the disposition.

Only individuals are required to file gift tax returns. If a trust, estate, partnership, or corporation makes gifts to the individual beneficiaries, partners, or stockholders, they are considered donors and may be liable for gift tax.

The due date for Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return, without an extension. See table below:

Tax Year Form 709

Due Date

2024

04-15-2025

2023

04-15-2024

2022

04-17-2023

2021

04-15-2022

2020

04-15-2021

The entity area of the Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, consists of the following:

Donor's name,

Donor's Address, and

Donor's Social Security Number (SSN).

On Form 709 underline the first 4 letters of the donors last name. Underline the address, if any of the following apply:

Line 11a box is checked, (Tax Year 2023 and prior), Tax Year 2024 Page 1, Part I, Line 18a "No" .

Line 11b box is checked, (Tax Year 2023 and prior), Tax Year 2024 Page 1, Part I, Line 18b) "Yes" .

If both boxes on Line 11a, or 11b for 2023, or Line 18a or 18b for 2024, are blank.

Both boxes or neither box is checked for Line 11b Tax Year 2023 or 18b for Tax Year 2024.

Deceased donor with CCC "F" .

If the "in care of" name begins with % or c/o if it is not followed by an in-care-of name(individual or business).

If

Then

There is any reference to Reg. 25.2511-2 (incomplete gifts) on Page 1 of Form 709

Edit the return.

Remove the return from the block and give to your manager to hold for Examination's review.

An amended ("G" coded) return

See IRM 3.11.106.23.2.2, Amended Returns - Form 709.

Both a PO Box and a street address are shown on the return

Perfect the address.

PO Box will always take precedence over a street address.

Underline the PO Box.

Pull the return for research/input of TC 014 by the Code and Edit Research Clerk.

A TC 014 must be input to retain the street address as a location address and the P.O. Box as the mailing address.

Joint return with 2 names on Line 1 and gift to any one donee is over $38,000 for 2025, $36,000 for 2024, $34,000 for 2023, $32,000 for 2022, $30,000 for 2018-2021, etc.,

Correspond to secure separate Forms 709.

Joint return with 2 names on Line 1 and gift to any one donee is $19,000 for 2025, $18,000 for 2024, $17,000 for 2023, $16,000 for 2022, $15,000 for 2018-2021, etc., or less

Circle out spouses name and continue processing.

Always circle out the "in care of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) and the percent symbol (%) when editing address information.

The donors residence (domicile) is found on Page 1, Part I, Box 5 for 2023 and prior and Box 12 for 2024 and subsequent.

The legal residence (domicile) of the donor (Box 5) determines whether the return is a domestic or foreign (international) address return.

KCSPC will process all domestic domicile address returns and all foreign (international) address returns (any address that is not in 1 of the 50 states or the District of Columbia).

KCSPC will edit the Citizenship Code.

All U.S. Possessions are considered foreign (international):

American Samoa (AS)

Federated States of Micronesia (FM)

Guam (GU)

Northern Mariana Islands (MP)

Marshall Islands (MH)

Palau (PW)

Puerto Rico (PR)

Virgin Islands (U.S.) - (VI)

APO/FPO addresses are not considered to be foreign (international) addresses.

The Postal Service established new address requirements for APO/DPO/FPO addresses.

If the old address appears (for example - APO New York, NY 091XX) it must be converted to the new state code abbreviation based on the ZIP Code (for example, the previous example would be converted to APO AE 091XX).

ZIP Code

Address

Abbreviation

340XX

APO/DPO/FPO

AA

090XX-098XX

APO/DPO/FPO

AE

962XX-966XX

APO/DPO/FPO

AP

The following information pertains to amended returns:

If

Then

Return is marked "Amended" , "Revised" , "Adjusted" , "Subsequent" , "Substitute" , "Supplemental" , or box 15, etc.

See IRM 3.11.106.10.5.1 Amended Returns.

Entity cannot be perfected on amended return after IDRS research, no data was found and document is numbered

Edit Action Code 320 to the return and route to Entity Control.

Attach Form 4227, Intra-SC Reject or Routing Slip and route to Entity Control.

Entity cannot be perfected on amended return after IDRS research, no data was found and document is unnumbered after IDRS research

Edit Action Code 320 to the return and route to Entity Control

Attach Form 4227, Intra-SC Reject or Routing Slip.

If Form 709-NA is attached to Form 709, then follow the steps below for each form.

Form 709:

Form 709-NA:

Detach the Form 709-NA from the Form 709.

Edit an Audit Trail on the Form 709, (e.g., Detach 709-NA).

Edit the Received Date from the Form 709 to the Form 709-NA.

Write Amended on top of Form 709-NA.

Route Form 709-NA to Cincinnati Centralized Specialty Tax, Mail Stop 824G.

Continue processing the Form 709.

Detach the Form 709 from the Form 709-NA.

Edit the Received Date from the Form 709-NA to the Form 709.

Edit an Audit Trail on the Form 709-NA, (e.g., Detached From 709).

Edit Form 709-NA as an Amended return. See IRM 3.11.106.10.5.1 Amended Returns.

Route Form 709 to Receipt and Control to be renumbered and rebatched.

See IRM 3.11.106.13, Received Date, for information regarding received date editing.

An IRS received date must be edited to all Form 709 returns whether timely or delinquent. See IRM 20.1, Penalty Handbook, for reasonable causes for delinquency.

The received date is edited MMDDYY format in Part II of the return to the left of Lines 6 and 7. See Figure 3.11.106-8, Received Date.

Figure 3.11.106-8

Please click here for the text description of the image.

The IRS received date must be stamped or edited on all returns. Caution should be taken to determine when a return was filed or became processable. Determine the received date from return, envelope, or attachments. (See Figure 3.11.106-8. Received Date)

Place penalty and interest code between Lines 2 and 3 of Page 1, Part II - Tax Computation. (See Figure 3.11.106-9.) See IRM 3.11.106.7, Penalty and Interest Code, for description of codes.

Figure 3.11.106-9

Please click here for the text description of the image.

An SSN is a 9- digit number which is assigned to an individual by the Social Security Administration.

An SSN is valid if it contains 9 numeric characters, all nines and/or all zeros will be considered invalid.

The Donor's SSN must be present on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

Exception: If a Trust files a return an EIN must be present.

If

Then

Other than 9 digits or multiple SSN's

Check attachments and schedules for current SSNs.

Missing a SSN and return is unnumbered

Research IDRS.

If SSN not found, prepare Form 4227, Intra-SC Reject or Routing Slip and route to Entity Control.

Missing a SSN and return is numbered

Edit Action Code 320 on the return.

Prepare Form 4227, Intra-SC Reject or Routing Slip and route to Entity Control.

The tax period for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return is determined by the date of the gift. Verify Schedule A, Column E for 2023 and prior, Schedule A Column f for 2024 and later), Date of Gift to determine tax period.

If

Then

Gift was made in current year

Do not edit tax period to Calendar Year at top of Form 709.

The current tax period is automatically generated.

Other than current tax period

It must be edited in YYMM format. (See Figure 3.11.106-10, Tax Period Form 709.

Form 709, "Calendar Year" is blank

Determine tax period ending from latest "Date of gift" listed on Schedule A.

No dates are listed on Schedule A or attachments

Process as the year indicated on the form/return.

Multiple years are filed on 1 return

Prepare dummy return if tax data can be determined for each year.

Continue processing.

If unable to determine tax data for multiple years, correspond using Form 3696, Correspondence Action Sheet or other approved Correspondence Action Sheet. See IRM 3.11.106.11.1, Issuing correspondence.

Do not correspond for multiple tax years if Box B on Schedule A is checked or if there is an indication on Schedule A (or on an attachment) that the gift is a contribution to a Section 529(c)(2)(B) - Qualified State Tuition Program.

More than one return for the same tax period and the same taxpayer

Staple all returns together.

Code top return completely.

Correspond using Form 3696, Correspondence Action Sheet or other approved Correspondence Action Sheet.

Unable to determine tax data for multiple years

Correspond. See IRM 3.11.106.11, Taxpayer Correspondence General.

Figure 3.11.106-10

Please click here for the text description of the image.

For early filed returns (for example a 2025 Form 709 filed in 2024 but not due until April 15, 2026) proceed as follows. :

Completely code the return using current IRM procedures. Initiate any needed correspondence before suspending the return. Use Action Code 2XX for correspondence, then attach Form 4227, Intra-SC Reject or Routing Slip, and annotate Action Code 480 as secondary action required.

Leave returns in batch for processing.

If

Then

Unnumbered return (no remittance)

Do not send the return back to taxpayer.

Post the return as the month actually received. For example, it the return is received in April 2020, post is as 2004.

Attach Form 4227, Intra-SC Reject or Routing Slip marked "Early Filed Hold" to the return and route to Rejects.

Unnumbered return (remittance only)

Do not send return back to taxpayer.

Remittance will be deposited to the taxpayer's account.

Edit CCC "Y" for remittance returns only.

Post the return as the month actually received. For example, it the return is received in April 2020, post is as 2004.

Numbered return (no remittance)

Do not send return back to taxpayer.

Edit Action Code 480 on the return.

Edit tax period.

Attach Form 4227, Intra-SC Reject or Routing Slip marked "Early Filed-Hold" to the return and route to Rejects.

Numbered return (remittance only)

Do not send return back to taxpayer.

Remittance will be deposited to the taxpayer's account.

Edit CCC "Y" for remittance returns only.

Post the return as the month actually received. For example, it the return is received in April 2020, post is as 2004.

Valid codes are A (2010 only), D, F, G, L, O, R, W, X, Y, 3, and 7. See IRM 3.11.106.10, Computer Condition Codes - CCC’s, for description of codes.

Edit CCC "A" to identify 2010 (ONLY) revisions (with a 2010 tax period) of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. If there are any dollar amount entries (other than zero) anywhere on Page 2, Schedule A, Parts II or III, or on Page 4, Schedule C (other than Exemption amounts (only) shown in Part II, Lines 1, 3, and/or 8). DO NOT edit CCC "A" if other than 2010. See Figure 3.11.106-11, Example of when to edit CCC "A" .

Figure 3.11.106-11

Please click here for the text description of the image.

For Citizenship Code, follow these procedures:

If

Then

On Page 1, Part I, Box 5, Tax Year 2023 and prior or Box 12 on 2024 and later, the taxpayer indicates that their legal residence is not in the U.S. and not a citizen of the U.S. on Page 1, Part I, Box 7 for 2023 and prior or Box 13 for 2024 and later, of the return

Edit a code "1" at the right end of Page 1, Part 1 Line 7 for 2023 and prior, Page 1, Part I, Line 13. for 2024 and later.(See Figure 3.11.106-12), Citizenship Code. for 2023

Edit CCC "Y" .

If blank or there is an indication the donor is an American, leave blank.

Figure 3.11.106-12

Please click here for the text description of the image.

Gift tax extension to file requests may be made on Form 2350, Application for Extension of Time to File U.S. Income Tax Return, and Form 4868, Application Extension of Time to File U.S. Individual Income Tax Return. or Form 8892, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, Processing instructions for the form are in, IRM 3.11.212, Applications for Extension of Time to File, Returns and Documents Analysis.

The following information pertains to extension of time to file and deferment of payment:

If

Then

Timely filed return with attachments (Balance due returns only)

Any timely filed return with attachments requesting extension of time to pay under (IRC) Section 6161 which has not been approved will be processed as a tentatively allowed deferment.

Annotate top of return, "Hardship Extension Tentatively Allowed" and requested extended date.

Forward extension request to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G.

Untimely filed return (Balance due returns only)

Any untimely filed hardship requests will also be routed to Cincinnati Centralized Specialty Tax, Estate and Gift, Mail Stop 824G.

Accept and note on return "Hardship Tentatively Disallowed, Withhold Issuance of Notice to Taxpayer" .

The following information pertains to the spouses SSN:

If

Then

Consent is given to split gifts

The spouses SSN must be present.

(The return will be coded with Consent Code "1" .)

Spouse's SSN is missing, incomplete or not valid

Check through attachments and schedules. If present, edit the correct SSN

if not found, research IDRS.

Primary and secondary SSNs are identical

Check through attachments and schedules. If present, edit the correct SSN.

No record of spouses SSN is found in any taxpayer directory (numbered return)

Edit Action Code 320 on the return.

Prepare Form 4227, Intra-SC Reject or Routing Slip and route to Entity Control.

The following pertains to consent of spouse:

(IRC) Section 2513 states that if husband and wife consent, all gifts made to third parties will, for purposes of gift tax, be considered as made one-half by each provided that the husband and wife are either U.S. citizens or U.S. residents.

The consent is effective only for those gifts made while the husband and wife are married.

If there is any indication of taxpayer intent to split gifts on the return, allow the consent.

Any of the following conditions constitute a valid consent:

The taxpayer/spouse checks "Yes" on consent of spouse field.

The spouse’s signature is present on Page 1, Part I, Line 18, (Tax Year 2023 and prior). Consent of Spouse Signature will not appear on a 2024 and subsequent tax return.

A timely signed jurat, a signed statement containing the same language found in Line 18 (Tax Year 2023 and prior), Consent of Spouse Signature will not appear on a 2024 and subsequent tax year return, from the spouse is received.

The consent of the husband is indicated (signified) on the wife's return and the wife's consent is signified on the husband's return.

The consent of each spouse is signified on their own return.

The consents of both spouses are signified on one of the returns.

If schedule A Part I, II, or III, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return) indicates Gifts by Spouse Information, consider this a valid consent by spouse.

If

Then

Consent Code is "1" and spouses SSN is missing, incomplete, or not a valid SSN

Search attachments for spouses SSN.

If not found, research IDRS.

No consent to split

Edit Consent Code "0" .

The taxpayer/spouse checked "No" on Line 12, but signed the consent

Allow the consent.

Edit Consent Code "1" .

If

Then

Once you have determined that a valid consent has been made

Edit Consent Code "1" in the left margin, on Page 1, Part I, Line 18,(Tax Year 2023 and prior), Page 2, Part III, Line 3 (Tax Year 2024 and subsequent), (See Figure 3.11.106-13, Consent Code).

Once you have determined that a valid consent has not been made

Edit "0" and "X" Line 14, (Tax Year 2023 and prior), Page 2, Part III, Line 3 (Tax Year 2024 and Subsequent), if present.

The spouse’s return could be in-house, therefore, do not correspond for spouse’s signature.

Figure 3.11.106-13

Please click here for the text description of the image.

Effective January 1, 2004, the Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, program was modified to accept dollars-only transcription for all lines on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, except for the following, which must be entered in dollars and cents:

Line 17 - Total Tax Amount

Line 18 - Prepaid Taxes

Line 19 -(202412 and prior), Balance Due, (202501 and later), Tax Due

Line 20 - (202412 and prior), Refunded Amount

Line 20a - (202501 and later), Overpayment

Line 20b. (202501 and later), Routing Transit Number

Line 20c. (202501 and later), Type of Depositor Account

Line 20d. (202501 and later), Depositor Account Number

Any lines in (1) above that have a vertical bold line, decimal, dash, or denominations clearly indicated will be treated as dollars and cents. No further editing is required.

If not clearly indicated, edit dollars and cents.

See Exhibit 3.11.106-17, Form 709, United States Gift (and generation skipping Transfer) Tax Return for a display of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and transcription lines (including Schedule A).

Line 1 - Taxable gifts Current Period Amount. This amount is carried forward from Schedule A, Part IV, Line 11. Accept taxpayer's figures.

Line 2 - Taxable gifts prior Period Amount. This amount is carried forward from Schedule B, Line 3. Accept taxpayer's figures.

Line 3 - Total taxable gifts. Accept taxpayer's figures.

Line 4 - Tax computed on amount on Line 3. Accept taxpayer's figures.

Line 5 - Tax computed on amount on Line 2. Accept taxpayer's figures.

Line 6 - Balance. Accept taxpayer's figures.

Line 7 - Applicable credit amount. If there is an amount on Line 7, accept taxpayers figures. If blank or zero and there is no amount on Schedule C, Line 5, (DSUE and/or Restored Exclusion), edit the appropriate amount from the table below in (13) a. If blank or zero and there is an amount on Schedule C, Line 5, edit that amount on Line 7(Applicable Credit Line).

An amount is considered greater than zero.

Line 8 - Applicable Credit against tax allowable for prior Periods from Schedule B Line 1 Column C. Accept taxpayer's figures.

Line 9 - Balance. Accept taxpayer's figures. If blank or zero subtract Line 8 from Line 7.

The following table contains information for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return for the unified/applicable credit and exemption equivalent for citizens and residents:

Form 709 Unified/Applicable Credit and Basic Exclusion Amounts

Year

Applicable Credit Amount

Basic Exclusion Amount

2025

$5,541,800

$13,990,000

2024

$5,389,800

$13,610,000

2023

$5,113,800

$12,920,000

2022

$4,769,800

$12,060,000

2021

$4,625,800

$11,700,000

2020

$4,577,800

$11,580,000

2019

$4,505,800

$11,400,000

2018

$4,417,800

$11,180,000

2017

$2,141,800

$5,490,000

2016

$2,125,800

$5,450,000

2015

$2,117,800

$5,430,000

2014

$2,081,800

$5,340,000

2013

$2,045,800

$5,250,000

2012

$1,772,800

$5,120,000

2011

$1,730,800

$5,000,000

2010

$330,800

$1,000,000

Line 10 - Adjustment to unified/applicable credit. Accept taxpayer's figures.

Line 11 - Balance. Accept taxpayer's figures. If blank or zero subtract Line 10 from Line 9.

Line 12 - Applicable credit. Accept taxpayer's figures.

Line 13 - Credit for foreign gift taxes. Accept taxpayer's figures.

Line 14 - Total credits. Accept taxpayer's figures.

Line 15 - Balance. Accept taxpayer's figures. If blank subtract Line 14 from Line 6.

Line 16 - Generation-Skipping Transfer Tax (GST). Accept taxpayer's figures.

Line 17 - Total tax. Accept taxpayer's figures.

Line 18 - prior payments. Accept taxpayer's figures.

Line 19 - (202412 and prior), Balance due. (202501 and later), Tax Due. Accept taxpayer's figures.

Check non-remit Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, for presence of a remittance (i.e., check attached) before releasing to Numbering.

Line 20 - (202412 and prior), Overpayment. Accept taxpayer's figures.

Line 20a - (202501 and later), Accept taxpayer figure’s

Line 20b - (202501 and later), Routing Transit Number. Accept Taxpayer entries.

Line 20c - (202501 and later), Type of Depositor Account. Accept taxpayer entries.

Line 20d. (202501 and later), Depositor Account Number. Accept taxpayer entries.

The purpose of green rocker Tax Due amounts is to show that money was received with the return. If the amount contains penalty and/or interest:

X-out the rocker amount.

Delete the penalty and/or interest.

Edit the Balance Due to the left of the original entry.

Edit a received date if one is not present.

See Figure 3.11.106-9, Penalty and Interest Code

If more than one Schedule A on return, staple all Schedules A together and continue processing.

Taxpayers are allowed a contribution to a qualified state tuition plan on behalf of a designated beneficiary. If the taxpayer's total contributions to a qualified state tuition program on behalf of any individual beneficiary exceeded $19,000 for 2025, $18,000 for 2024, $17,000 for 2023, $16,000 for 2022, $15,000 for 2021 through 2018, then for purposes of the annual exclusion the taxpayer could elect under (IRC) Section 529(c)(2)(B) to treat up to $95,000 of the total contributions as having been made ratably over a 5 year period beginning in 2021. These are considered gifts of a present interest.

The following information pertains to IRC Section 529(c)(2)(B) - Qualified State Tuition Programs:

If

Then

The taxpayer checked box B, Schedule A, and entered the amounts of gifts on Schedule A:

or if there is an indication on Schedule A (or an attachment) that the gift is a contribution to an IRC Section 529(c)(2)(B) - Qualified State Tuition Program,

or other similar statement such as state tuition plan or college tuition

Accept taxpayer's figures.

ERS/Rejects will compute the allowable tax computation.

The following information pertains to Donor's adjusted basis of gift:

If

Then

There is more than one entry anywhere on Schedule A Part I, Column d (Tax Year 2023 and prior), Schedule A Part I Column h (Tax Year 2024 and later), Schedule A, Part I Column e (202501 and later), (Donor's adjusted basis of gift)

Edit the amount of $1.00 to top middle portion of Schedule A See Figure 3.11.106-14, Number of Donees

Blank, zero, "see attached" , or "etc." is notated with no amounts on Schedule A Column d (Tax Year 2023 prior), Schedule A Column h (Tax Year 2024), Schedule A Column e (202501 and later).

Do not edit $1.00 to the top of Schedule A

Figure 3.11.106-14

Please click here for the text description of the image.

Verify that there is an entry. A donee can be an individual, a charitable organization, or the beneficiaries of a trust.

Each individual to whom a gift is directly given is a donee. It does not matter how many times a gift is given; the individual accounts for only one donee.

Trust - A trust can be set up for one or a number of beneficiaries. They can be individuals or charitable organizations.

The number of beneficiaries of the trust determines the number of donees, not the existence or number of the trusts.

Follow these procedures:

If

Then

Page 1, Part I, Line 10 (Tax Year 2023 and prior), Page 1, Part I, Line 17 (Tax Year 2024 and Subsequent, is blank or zero

Edit the correct number of donees from Schedule A, Column B, or from an attachment with Schedule A information or allow the number of donees necessary to offset the annual exclusion being claimed by dividing the amount on Schedule A, Line 2 by the appropriate annual exclusion amount.

The annual exclusion amount is $19,000 for 2025

$18,000 for 2024

$17,000 for 2023

$16,000 for 2022

$15,000 for 2018 through 2021

$14,000 for 2013 through 2017

$13,000 for 2009 through 2012

$12,000 for 2006 through 2008

$11,000 for 2002 through 2005

$10,000 for 2001 and prior returns.

Leave an action trail on Page 1 (left side between Lines 11-20) stating: "Schedule A" or "Line 2" .

The number of Donees from Schedule A Column B and/or attachments must not exceed the annual exclusion amounts per donee on Line 2 schedule A if used to edit a Blank Line 10 Page 1 Part I, or (Page 1, Part I, Line 17 (Tax Year 2024 and Subsequent). Check this by calculating the number of donees multiplied by the annual exclusion amount for the appropriate year. If the total exceeds the amount on Line 2 Schedule A page 3, divide the amount on Line 2 Schedule A page 3 by the annual exclusion amount to determine the number of donees to edit on a blank Line 10.

Page 1, Part I, Line 10 (Tax Year 2023 and prior), Page 1, Part I Line 17 (Tax Year 2024 and Subsequent) is shown as alpha and numeric

Edit by circling out the alpha; leaving the numeric.

Schedule A, Part IV, Line 2 is blank, zero, or missing

"X" out the number of donees. (See Figure 3.11.106-14.), Number of Donees.

The spouses return could be in-house, therefore, do not correspond.

Edit the Foreign Spouse Indicator on Schedule A Part I, left margin. Edit a "1" for foreign spouse and leave blank for domestic spouse. See Exhibit 3.11.106-17, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

If a foreign spouse is present, then verify the amount on Schedule A, Part IV, Line 2 includes the correct amount for the tax year as shown in the Foreign Spouse Annual Exclusion table below.

This information is only identifiable to the TE by a foreign exclusion amount included on Schedule A, Line 2.

Foreign Spouse Annual Exclusion

Tax Year

Amount

2025

$190,000

2024

$185,000

2023

$175,000

2022

$164,000

2021

$159,000

2020

$157,000

2019

$155,000

2018

$152,000

2017

$149,000

2016

$148,000

2015

$147,000

2014

$145,000

2013

$143,000

2012

$139,000

2011

$136,000

2010

$134,000

2009

$133,000

2008

$128,000

2007

$125,000

2006

$120,000

The annual exclusion for a foreign spouse can’t exceed the amount (for applicable tax year) as shown in IRM 3.11.106.23.12.4, Foreign Spouse Annual Exclusion table above.

If the foreign spouse indicator is not present but Line 2 includes the exclusion amount for applicable year as shown in IRM 3.11.106.23.12.4, Foreign Spouse Annual Exclusion table above, then edit a "1" for Foreign Spouse Indicator.

Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, with deceased donors will be processed as a regular return.

If

Then

The donor died in the year the gift was made, indicating that this is a final return

Edit CCC "F" .

Page 1, Part I, Line 8 block, (Tax Year 2023 and prior), Page 1, Part I, Line 14 (Tax Year 2024, and Subsequent) is checked and the donor died in the year the gift was made

Edit a 1 next to the DOD block. (See Figure 3.11.106-15, Deceased Donor.

Edit CCC F.

The donor died after the tax period (i.e., a gift was given in February 2016 and the donor died in January 2017)

Do not edit CCC "F" .

Do not edit deceased donor code "1" .

Page 1, Part I, Line 8, (Tax Year 2023 and prior), Page 1, Part I, Line 14 Tax Year 2024, and Subsequent block is checked

DOD must also be present.

If not present, research the return and attachments for the DOD.

DOD cannot be found on the return or attachments

Research IDRS for DOD.

If DOD is found through research

Edit the DOD next to the box, (Tax Year 2023 and prior), Page 1, Part I, Line 14 Tax Year 2024, and Subsequent).

If DOD cannot be found through research

Edit Action Code "320" on the return

Route to Entity Control on Form 4227, Intra-SC Reject or Routing Slip.

Figure 3.11.106-15

Please click here for the text description of the image.

An original signature is required on all Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

If Form 709, is mailed on or after August 28, accept a digital or electronic signature(you determined it does look like a digital signature).

Process unsigned returns as follows:

If

Then

Unnumbered, Numbered or Balance Due Returns

Edit Action Code 225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns), or AC 226 International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) to correspond for signature.

Correspond for signature. Attach a Letter 3463C Missing Information Request to Process Business Returns, requesting an original/ink signature.

Leave a correspondence action trail in the lower- left hand margin indicating a 3463C letter was sent.

Numbered returns should remain in block of work.

Replies to Correspondence

When signed Jurat (declaration) is received, attach it to the return.

The return is photocopied with a photocopied signature (not original/ink signature)

If Form 709 is mailed on or after August 28, 2020, accept a digital or electronic signature.

Edit Action Code 225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns), or AC 226 International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns)

Attach a Letter 3463C requesting an original/ink signature.

Leave a correspondence action trail in lower left hand margin indicating Letter 3463C, Missing Information Request to Process Business Returns letter sent.

Leave a correspondence action trail in the lower left hand margin indicating a 3463C letter was sent.

Leave in batch and continue processing.

Form 709-A, United States Short Form Gift Tax Return, was obsoleted effective October 2003.

If Form a 709-A United States Short Form Gift Tax Return, is received, send back to taxpayer using, Letter 180C, Gift Tax Return Incomplete for Processing Form 709 or 709-A, or other appropriate letter, and request that the taxpayer file on Form 709.

If a Form 709-A is received from another function (i.e., Compliance, 6020(b) etc.), send back to originator stating that Form 709-A were obsolete effective October 2003.

The following information pertains to Form 706-GS (D)Generation-Skipping Transfer Tax Return for Distribution.

As a result of the Tax Reform Act of 1986, Public Law 99-514, IRC Section 2601-2663, anyone who received a taxable distribution from a trust made after October 22, 1986, must file a Form 706-GS(D) Generation-Skipping Transfer Tax Return for Distribution. Under certain circumstances, the tax applies to distributions made after September 25, 1985. This tax is paid by the distributee.

Trustees are required to report generation-skipping distributions on Form 706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust, Copy B is sent to the distributee to use in preparing a Form 706-GS (D)Generation-Skipping Transfer Tax Return for Distribution.

A Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distribution and Form 706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust. Copy A must be filed and processed at KSCPC.

All taxable generation-skipping distributions received during the year will be reported in Part II of a Form 706-GS(D), Generation-Skipping Transfer Return for Distribution. The transferee will receive a Form 706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust, copy of each trust from which a taxable distribution is received. The Form D-1, Part II, Column f will provide the tentative transfer amount since this is calculated with trust information.

All RemittanceForm 706-GS(D), Generation-Skipping Transfer Tax Return for Distribution, will be assigned document locator numbers and blocked before sending to Document Perfection.

No RemittanceForm 706-GS(D), will be numbered after examination.

Perfected returns will be forwarded through normal BMF pipeline processing. These returns will be numbered as follows:

Tax Class - 5

Doc Code - 59

Blocking Series - 000-499

MFT 78

Abstract - 217

Program Code - 12403

Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distribution, returns are filed at KCSPC.

The generation-skipping transfer tax on distributions is computed and filed on a calendar year basis, regardless of the income tax accounting period.

Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distribution, must be filed on or after January 1 but not later than April 15 of the year following the year in which the distributions were made.

The following information pertains to early filed returns:

If

Then

Unnumbered returns

Do not send return back to taxpayer.

Hold the return in suspense until January 1 of the following year.

Send letter notifying taxpayer of action taken.

Numbered returns

Do not send return back to taxpayer.

Remittance will be deposited to the taxpayer's account and the return will be held in suspense until January of the following year.

Send letter notifying taxpayer of action taken.

A numbered return and information for preparation of dummy return(s) is available

Edit CCC "U" and route to Rejects function.

Information is not available

Edit CCC "U" and correspond for information.

See IRM 3.11.106.7, Penalty and Interest (P&I) Code.

An extension of time may be granted for filing Form 706-GS(D),Generation-Skipping Transfer Tax Return for Distribution and/or Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations.

The extension is requested using Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns.

In no event will an extension of more than 6 months be granted to an applicant living in the United States.

Form 706-GS(D),Generation-Skipping Transfer Tax Return for Distribution, must be signed by the distributee whose name appears on Part I, Line 1, or by an authorized representative.

Form 706-GS(D) mailed on or after August 28, 2020, a digital or electronic signature is acceptable.

Use Letter 3463C, Correspondex Letter to request missing signature.

Edit Action Code 225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns), or Action Code 226 International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) to correspond for signature.