Section 02 Data Form 706-NA, United States Estate (and Generation-Skipping Transfer)…

Section 02 field designators, line numbers, field lengths and titles are listed below. It is transcribed in dollars and cents. Field 0203 may be positive only.

This section is required unless Field 01CCC contains a CCC "G" .

The computer will not math verify this section if:

The Date of Death (Field 01DOD) is Prior to 01/01/1977.

The DOD is invalid.

On a "G" coded, amended return, Section 02, 03 and 04 cannot be present. If Section 03 is present, the screen will state that Section 02 is missing. To clear the screen, DLSEC 03.

Correct transcription errors if the field is not entirely numeric.

If the money amounts on a return exceeds the maximum field length allowable, reject with AC’s 610 or 611.

Enter the maximum amount allowable on the original return. Recompute the tax data and enter the corrected amount(s) on the screen display and the return. DO NOT SEND A TAXPAYER NOTICE CODE.

Write on the original return, "Dummy Return prepared due to overflow document" .

Prepare a "Dummy Return" by computing and entering the remaining overflow money amount(s) for the correct fields. Enter the following data on the "Dummy Return" :

On the top of the return write "Prepared from Overflow Return" .

Entity data from the original return.

The DLN from the original return.

CCC "G" in Field 01CCC.

In the signature area write "Signature on Original Return" .

Attach routing slip to the completed "Dummy Return" and send to Receipt and Control to have the "Dummy Return" numbered and processed.

The Error Record Format for Section 02 is listed as follows:

Field Designator

Maximum Characters

Field Name

Location

0201

12 (202412 and Prior) 15 (202501 and later)

Total Gross Estate

Page 1, Part II, Line 1

0202

12 (202412 and Prior) 15 (202501 and later)

Adjusted Taxable Gifts

Page 1, Part II, Line 2

0203

12 (202412 and Prior) 15 (202501 and later)

Taxable Estate

Page 1, Part II, Line 3

12 (202412 and Prior) 15 (202501 and later)

Taxable Estate Computer

0204

12 (202412 and Prior) 15 (202501 and later)

Tentative Tax

Page 1, Part II, Line 4

12 (202412 and Prior) 15 (202501 and later)

Tentative Tax Computer

0205

12 (202412 and Prior) 15 (202501 and later)

Tentative Tax Tangible

Page 1, Part II, Line 5

12 (202412 and Prior) 15 (202501 and later)

Tentative Tax Tangible Computer-Generated

0206

12 (202412 and Prior) 15 (202501 and later)

Gross Estate Tax

Page 1, Part II, Line 6

12 (202412 and Prior) 15 (202501 and later)

Gross Estate Tax Computer-Generated

0207

12 (202412 and Prior) 15 (202501 and later)

Unified Credit

Page 1, Part II, Line 7

12 (202412 and Prior) 15 (202501 and later)

Unified Credit Computer-Generated

0208

12 (202412 and Prior) 15 (202501 and later)

Balance after Unified Credit

Page 1, Part II, Line 8

12 (202412 and Prior) 15 (202501 and later)

Balance after Unified Credit Computer-Generated

02SDC

12

State Death Tax Credit

Page 1, Part II, Line 9 (Tax Years 2004 and Prior)

12

State Death Tax Credit Computer-Generated

02BSD

12

Balance after State Death Tax Credit

Page 1, Part II, Line 10 (Tax Years 2004 and Prior)

12

Balance after State Death Tax Credit Computer-Generated

0209

12 (202412 and Prior) 15 (202501 and later)

Other Credits (202412 and Prior) Credit for Pre 1977 Federal Gift Taxes (202501 and later)

Page 1, Part II, Line 9

0210

12 (202412 and Prior) 15 (202501 and later)

Prior Transfer Credit (2024 12 and Prior) Martial Credit, 1995 Canadian Protocol (202501 and later)

Page 1, Part II, Line 10

0211

12 (202412 and Prior) 15 (202501 and later)

Total Credits (202412 and Prior) Credit for Tax on Prior Transfers (202501 and later)

Page 1, Part II, Line 11

12 (202412 and Prior) 15 (202501 and later)

Total Credits Computer-Generated (202412 and Prior) No Computer Underprint (202501 and later)

0212

12 (2008 and Prior) 15 (202501 and later)

Credit for Tax on Prior Transfers (2008 and Prior) Total Credits (202501 and later)

Credit for Tax on Prior Transfers Part II, Line 12 (Tax Year 2008 and Prior) Total Credits Part II, Line 12 (202501 and later)

12 (2008 and Prior) 15 (202501 and later)

Credit for Tax on Prior Transfers Computer-Generated (2008 and Prior) Total Credits Computer Generated (202501 and later)

0213

12

Total Credits

Part II, Line 13 (Tax Year 2008 and Prior)

12

Total Credits Computer-Generated

(202412 and Prior) Field 0201 is transcribed from Part II, Line 1 of the return and is verified by Code and Edit tax examiners. It is transferred from Page 2, Part III, Schedule B, Line 9 of the return. The amount transcribed will be either the taxpayer's amount or the examiner's corrected amount. It must be entered in dollars and cents.

(202501 and later): This field is transcribed from, Part II, Line 1 of the return and is verified by Code and Edit tax examiners. It is transferred from Part IV, Line 10. The amount transcribed will be either the taxpayer's amount or the examiner's corrected amount. It must be entered in dollars and cents.

This line shows the U.S. sourced taxable estate of the decedent. After certain gifts given during life are added back, this amount provides the basis upon which the estate tax (before credits or other adjustments) is calculated.

Field 0201 is invalid if it is not all numeric or exceeds $9,999,999,999,999.99.

Check for coding and transcription errors and correct as needed.

This field is transcribed from Part II, Line 2 of the return. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Estate and gift taxes have a unified tax structure. Tax is calculated on assets given as gifts after December 31, 1976, as well as assets owned at death. Therefore, those gifts not excludable under the Code must be added to the taxable estate to decide the amount upon which estate tax can be imposed.

Field 0202 is invalid if it is not all numeric or exceeds $9,999,999,999,999.99.

Check for coding and transcription errors and correct as needed.

This field is transcribed from Part II, Line 3 of the return. It is computed by adding Page 1, Part II, Lines 1 and 2 (Fields 0201 and 0202). This field is positive.

This is the amount on which after certain gifts given during life are added back, the estate tax (before credits or other adjustments) is calculated.

Field 0203 is invalid if it is not all numeric or exceeds plus or minus $9,999,999,999,999.99.

Check for coding and transcription errors and correct as needed.

This field is transcribed from Part II, Line 4. The computer figures the tax in this field by using the amount in Taxable Estate Computer and two tax tables.

This is the basic estate tax, subject to adjustments.

Field 0204 is invalid if it is not all numeric or exceeds $9,999,999,999,999.99.

Check for coding and transcription errors and correct as needed.

This field is transcribed from Part II, Line 5. It is the total amount of gift tax paid on gifts made after December 31, 1976.

Gifts made after December 31, 1976, are included in an estate. The gift and estate taxes are not separate taxes. Rather, they are designed to impose a tax on transfer of assets, whether made during life or upon death. This line gives a credit against estate tax for gift taxes paid. Were this not so, an individual would have to pay tax on the gift twice, once when they made the gift and again at death.

Field 0205 is invalid if it is not all numeric or exceeds $9,999,999,999,999.99.

Check for coding and transcription errors and correct as needed.

This field is transcribed from Part II, Line 6 (Field 0206). It is computed by subtracting Page 1, Part II, Line 5 (Field 0205) from Part II, Line 4 (Field 0204).

See IRM 3.12.263.15.7.1, Field 0205 Tentative Tax Tangible Purpose, for the reasons this field allows gift taxes paid to be subtracted from estate tax.

Field 0206 is invalid if it is not all numeric or exceeds $9,999,999,999,999.99.

Check for coding and transcription errors and correct as needed.

This field is transcribed from Part II, Line 7. The computer will math verify this field by using the Date of Death (Field 01DOD) and the Unified Credit amounts.

Unified Credit is the lesser of Gross Estate Tax (Field 0206) or the generated Maximum Unified Credit.