# IRS Form 706: Who Must File It and Related Forms

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*— Mindful Media / Getty Images*

## What Is IRS Form 706?

Form 706: United States Estate (and Generation-Skipping Transfer) Tax Return is an Internal Revenue Service (IRS) form that an executor of a decedent’s estate uses to calculate the [estate tax](https://www.investopedia.com/terms/e/estatetax.asp) and the generation-skipping transfer tax.

### Key Takeaways

*   Executors use Form 706 to calculate the estate tax and the generation-skipping transfer tax.
*   Form 706 must be filed on behalf of a deceased U.S. citizen or resident whose gross estate, adjusted taxable gifts, and specific exemptions exceed $13.99 million in 2025 (or $13.61 million in 2024).
*   Form 706-GS(D) is used to calculate taxes due on trust distributions subject to the generation-skipping transfer tax.

An executor uses Form 706 to calculate the [amount of tax owed on estates](https://www.investopedia.com/articles/personal-finance/120715/estate-taxes-who-pays-what-and-how-much.asp) valued at more than $13.99 million if the decedent died in 2025 (or $13.61 million in 2024).

Form 706 also helps executors determine the overall value of an estate prior to distributing any assets to [beneficiaries](https://www.investopedia.com/terms/b/beneficiary.asp) as outlined in the decedent’s [will](https://www.investopedia.com/terms/w/will.asp) or [trust](https://www.investopedia.com/terms/t/trust.asp). The IRS treats any inheritance with a [stepped-up valuation](https://www.investopedia.com/terms/s/stepupinbasis.asp)—or a step-up basis. That means the [cost basis](https://www.investopedia.com/terms/c/costbasis.asp) is adjusted to the fair market value of the inherited property as of the date of death.

Using the stepped-up valuation methodology allows [heirs](https://www.investopedia.com/terms/h/heir.asp) to minimize [capital gains taxes](https://www.investopedia.com/terms/c/capital_gains_tax.asp). The method also allows for a cleaner valuation process in terms of limiting the number of administrative tasks associated with the estate. 

A [generation-skipping transfer tax](https://www.investopedia.com/terms/g/generation-skipping-transfer-tax.asp) is a transfer of money or property, either as an inheritance or a gift, to someone who is two or more generations after the grantor. The person who receives the inheritance or gift is called the skip person. While a skip person is often a grandchild, it could be anyone who’s at least 37½ years younger than the grantor.

The generation-skipping transfer tax is imposed on gifts and inheritances that a skip person receives. This ensures that taxes are paid at each generational level. The generation-skipping transfer tax has the same lifetime exemption as the federal estate and gift taxes: $13.99 million for 2025 ($13.61 million for 2024).

## Who Can File Form 706?

Form 706 must be filed by the executor of the estate of every U.S. citizen or resident:

*   Whose gross estate, adjusted [taxable gifts](https://www.investopedia.com/terms/a/annual-exclusion.asp), and specific exemptions total more than the exclusion amount: $13.99 million for decedents who died in 2025 ($13.61 million in 2024), or
*   Whose executor elects to transfer the “deceased spousal unused exclusion” amount to the surviving spouse, regardless of the size of the decedent’s gross estate.

To determine if the estate exceeds the exclusion amount, add together amounts 1, 2, and 3 below.

1.  The adjusted taxable gifts made by the decedent after December 31, 1976
2.  The total specific exemption allowed under Section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) for gifts made by the decedent after September 8, 1976
3.  The decedent’s gross estate valued as of the date of death

The gross estate includes:

*   All property in which the decedent had an interest (including real property outside the U.S.)
*   Certain transfers made during the decedent’s life without adequate consideration
*    [Annuities](https://www.investopedia.com/terms/a/annuity.asp)
*   The includable part of [joint estates with rights of survivorship](https://www.investopedia.com/terms/j/jtwros.asp)
*   The includable part of [tenancies by the entirety](https://www.investopedia.com/terms/t/tenancy-by-the-entirety.asp)
*   Certain life insurance proceeds
*   Property over which the decedent had a [general power of appointment](https://www.investopedia.com/articles/managing-wealth/042216/medical-vs-financial-power-attorney-reasons-separate-them.asp)
*   [Dower](https://www.investopedia.com/terms/d/dower.asp) or [curtesy](https://www.investopedia.com/terms/c/curtesy.asp) (or statutory estate) of the surviving spouse
*   [Community property](https://www.investopedia.com/terms/c/communityproperty.asp) in which the decedent had an interest

> **Important**
>
> The IRS uses a stepped-up valuation methodology in determining the value of an estate.

![IRS Form 706](https://www.investopedia.com/thmb/E72z3l7_pjZuGfPG00_tYP5W_Js=/801x0/filters:no_upscale():max_bytes(150000):strip_icc()/ScreenShot2025-02-10at5.33.49PM-2703714d1b354b29a1fc4052ee37e0f5.png)

*Internal Revenue Service (IRS).*

Form 706 is available [on the IRS website](https://www.irs.gov/pub/irs-pdf/f706.pdf).

## Related Forms

[Form 706-NA](https://www.investopedia.com/terms/f/form-706-na.asp), United States Estate (and Generation-Skipping Transfer) Tax Return is used to calculate estate tax and generation-skipping transfer tax liability for nonresident alien decedents.

[Form 706-GS(D)](https://www.investopedia.com/terms/f/form-706-gs-d.asp), Generation-Skipping Transfer Tax Return for Distributions is used to calculate taxes due on trust distributions subject to the generation-skipping transfer tax. Any skip person who receives a taxable distribution coming from a trust must use Form 706-GS(D) to calculate and report the tax due.

Trustees must report taxable distributions to skip persons using Form 706-GS(D-1), Notification of Distribution from a Generation-Skipping Trust. Note that [trustees](https://www.investopedia.com/terms/t/trustee.asp) must also provide the skip person with the information needed to figure the tax due on the distribution.

## Where to Mail Form 706

You must file a paper Form 706 to report and pay estate tax or generation-skipping transfer tax within nine months of the date of the decedent’s death. If you can’t file Form 706 by the due date, you can apply for an automatic six-month extension using Form 4768, Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes.

File Form 706 at the following address:

*   Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999

If you’re using a private delivery service (including DHL Express, FedEx, and UPS), send Form 706 to:

*   Internal Revenue Submission Processing Center, 333 W. Pershing Road, Kansas City, MO 64108

If you’re filing an amended Form 706, use the following address (even if you’re using a private delivery service):

*   Internal Revenue Service Center, Attn: E&G, Stop 824G, 7940 Kentucky Drive, Florence, KY 41042-2915

Make checks payable to “United States Treasury” and note the decedent’s name, Social Security number, and “Form 706” on the check. Alternatively, you can pay online through the [Electronic Federal Tax Payments System](https://www.investopedia.com/terms/e/eftps.asp).

## Does Every Estate Have to File a Form 706?

Not all estates must file a Form 706. A form has to be filed on behalf of someone who has died when the gross estate, adjusted taxable gifts and tax exemption surpasses the filing limit for the year of the person's death.

## What's the Difference Between IRS Form 706 and IRS Form 709?

IRS Form 706 is filed by the executor of an estate on behalf of someone who has died to determine what taxes are owed, while IRS Form 709 is filed by an individual to report to the government any gifts that have surpassed the annual limit.  

## What Triggers an Estate Tax Return?

An estate that pulls in more than $600 in annual gross income must file Form 1041, U.S. Income Tax Return for Estates and Trusts. The estate may also have to pay quarterly estimated taxes.  

## The Bottom Line

IRS Form 706, also known as the United States Estate and Generation-Skipping Transfer Tax Return, is used to report the value of a deceased individual's estate for federal estate tax purposes. It includes information about the decedent's assets, deductions, and beneficiaries. It's used by the IRS to calculate any estate taxes which may be subject to an estate tax exclusion.

> **Article Sources**
>
> 1.  Internal Revenue Service. "[About Form 706-GS (D-1), Notification of Distribution From a Generation-Skipping Trust](https://www.irs.gov/forms-pubs/about-form-706-gs-d-1)."
>     
> 2.  Internal Revenue Service. "[About Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return](https://www.irs.gov/forms-pubs/about-form-706)."
>     
> 3.  Internal Revenue Service. "[IRS Provides Tax Inflation Adjustments for Tax Year 2024.](https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024)"
>     
> 4.  Internal Revenue Service. "[About Form 706-GS (D), Generation-Skipping Transfer Tax Return for Distributions](https://www.irs.gov/forms-pubs/about-form-706-gs-d)."
>     
> 5.  Internal Revenue Service. "[Frequently Asked Questions: Gifts & Inheritances](https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances)."
>     
> 6.  Internal Revenue Service. "[Instructions for Form 706-GS (D-1)](https://www.irs.gov/pub/irs-pdf/i706gsd1.pdf)," Pages 1-3.
>     
> 7.  Internal Revenue Service. "[Instructions for Form 706 (09/2023)](https://www.irs.gov/instructions/i706)."
>     
> 8.  Internal Revenue Service. "[What's New - Estate and Gift Tax](https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax)."
>     
> 9.  Internal Revenue Service. "[About Form 706-NA](https://www.irs.gov/forms-pubs/about-form-706-na)."
>     
> 10.  Internal Revenue Service. "[About Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes](https://www.irs.gov/forms-pubs/about-form-4768)."
>      
> 11.  Internal Revenue Service. "[Where to File - Forms Beginning With The Number 7](https://www.irs.gov/filing/where-to-file-forms-beginning-with-the-number-7)."
>      
> 12.  Internal Revenue Service. "[Submission Processing Center Street Addresses for Private Delivery Service (PDS)](https://www.irs.gov/filing/submission-processing-center-street-addresses-for-private-delivery-service-pds)."
>      
> 13.  Electronic Federal Tax Payment System. "[Welcome to EFTPS](https://www.eftps.gov/eftps/)."
>      
> 14.  Internal Revenue Service. "[Frequently Asked Questions on Estate Taxes](https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-estate-taxes)."
>      
> 15.  Internal Revenue Service. "[Deceased Person](https://www.irs.gov/individuals/deceased-person)."
>      
> 16.  Internal Revenue Service. "[About Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return](https://www.irs.gov/forms-pubs/about-form-709)."
>      
> 17.  Internal Revenue Service. "[File an Estate Tax Income Tax Return](https://www.irs.gov/individuals/file-an-estate-tax-income-tax-return)."