Determining Responsibility Under Section 2801

It is your responsibility to determine your obligations to report and pay tax, if any, under section 2801. This includes (among other things) determining:

• Your citizenship or resident status, if applicable. See U.S. citizen or resident , earlier, for more details.

• Your status as a domestic or foreign trust, if applicable. See Domestic trust and Foreign trust , earlier, for more details.

• The covered expatriate status of an individual from whom you receive, directly or indirectly, any gifts or bequests

Instructions for Form 708 (12-2025) 5

during the applicable calendar year, including any distributions from foreign trusts. An individual is a covered expatriate only if they relinquished U.S. citizenship or ended their long-term residency after June 16, 2008. See Covered expatriate , earlier, for more details. See also section 2801(f).

• The value of covered gifts or covered bequests, including the amount of distributions from non-electing foreign trusts that are attributable to covered gifts or covered bequests, on the date of receipt. See Value of covered gift or covered bequest, Covered gift or covered bequest received from non-electing foreign trust , and Date of receipt , later, for more details.

The section 2801 tax on the value of covered gifts and covered bequests is to be paid by you as the recipient of the covered gift or covered bequest. See Liability for and Payment of Section 2801 Tax and Computing Section 2801 Tax , later, for more details.

In certain situations, you may request the return or return information of the individual or individual’s estate from whom you have received a gift or bequest to assist you in determining whether the individual was a covered expatriate and whether the transfer was a covered gift or covered bequest. The IRS may be permitted, upon receipt of the request, to disclose to you the return or return information of the individual or individual’s estate. See section 6103. You may not rely upon this information, however, if you know, or have reason to know, that the information received from the IRS is incorrect or incomplete. See Regulations section 28.2801-7(b)(1).

Special rule when living individual making a gift does not authorize disclosure of return information under section 6103. If you receive a gift during the applicable calendar year from an individual who has or may have relinquished U.S. citizenship or terminated U.S. residency, and the individual who is still living does not authorize the IRS to disclose relevant return or return information to you, the individual is treated as a covered expatriate for section 2801 purposes unless you are able to provide other documentation to support the individual’s status as other than a covered expatriate. For more on this rebuttable presumption, see Regulations section 28.2801-7(b)(2). For information regarding tax information authorizations, see Form 8821, Tax Information Authorization, and its instructions.

Protective Form 708. If you receive a gift or bequest from an expatriate and reasonably conclude that the gift or bequest is not a covered gift or a covered bequest from a covered expatriate, you may file a protective Form 708 to start the running of the period of limitations for assessment of tax. See Regulations section 28.2801-7(c). A protective Form 708 will start the running of the period of limitations for assessment of tax if you include all of the information otherwise required on Form 708, along with an affidavit, signed under penalties of perjury, setting forth the information on which you are relying in concluding that the individual or individuals from whom you received, directly or indirectly, any gifts or bequests during the applicable calendar year was not a covered expatriate, and that the gift or bequest was not a covered gift or a covered bequest, as well as your efforts to obtain other information that might be relevant to these determinations. In addition, if you have information from the IRS, you must attach a copy of such information to the protective Form 708. See Regulations section 28.2801-7(b) (1). You also must attach a copy of a completed Part III of Form 3520, for all trust distributions, or Part IV of Form 3520

for all gifts and bequests, if applicable, to the protective Form 708. See Regulations section 28.6011-1(b).