Purpose of Form

Individual U.S. citizens and residents (based on domi- cile). Use Form 708 to report covered gifts and covered bequests received during the applicable calendar year for which Form 708 is being filed and to figure the tax due, if any, on those covered gifts and covered bequests. Covered gifts and covered bequests are gifts and bequests received from a covered expatriate and include distributions from certain foreign trusts that received covered gifts or covered bequests from a covered expatriate. See Covered gift , Covered bequest , and Covered expatriate , later, for more details.

Domestic trusts. Use Form 708 to report covered gifts and covered bequests received during the applicable calendar year and to figure the tax due, if any, on those covered gifts and covered bequests. If you were a foreign trust that became a domestic trust during the applicable calendar year (a migrated foreign trust, see Migrated foreign trust , later), use Form 708 to report covered gifts and covered bequests, received during the applicable calendar year and any previous year, and to figure the tax due, if any, on the trust. See instructions for Part IV, Section 3, later and Regulations section 28.2801-4.

Foreign trusts. Use Form 708 to make an election to be treated as a domestic trust for section 2801 purposes (an electing foreign trust, see Electing foreign trust , later). If in the applicable calendar year you are making an election to be treated as an electing foreign trust, use Form 708 also to report covered gifts and covered bequests, if any, received during the applicable calendar year and any previous year, and to figure the tax due, if any, on the trust. If you are an electing foreign trust (having an election already in place to be treated as a domestic trust for section 2801 purposes), use Form 708 to report covered gifts and covered bequests received during the applicable calendar year and to figure the tax due, if any, on those covered gifts and covered bequests.