Instructions for IRS Form 706-QDT U.S. Estate Tax Return for Qualified Domestic Trusts

IRS Form 706-QDT U.S. Estate Tax Return for Qualified Domestic Trusts

This document contains official instructions for IRS Form 706-QDT , U.S. Estate Tax Return for Qualified Domestic Trusts - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 706-QDT is available for download through this link.

FAQ

Q: What is IRS Form 706-QDT?
A: IRS Form 706-QDT is the U.S. Estate Tax Return specifically for Qualified Domestic Trusts (QDTs).

Q: Who needs to file IRS Form 706-QDT?
A: The trustees of a Qualified Domestic Trust must file IRS Form 706-QDT if the trust holds assets totaling $11.58 million or more at the time of the grantor's death.

Q: What is a Qualified Domestic Trust (QDT)?
A: A Qualified Domestic Trust (QDT) is a specific type of trust established by a non-U.S. citizen to ensure that U.S. estate taxes are paid on assets left to a surviving spouse who is not a U.S. citizen.

Q: What does IRS Form 706-QDT report?
A: IRS Form 706-QDT reports the fair market value of the trust assets, tax calculations, and any estate tax due.

Q: When is IRS Form 706-QDT due?
A: IRS Form 706-QDT is generally due nine months after the date of the grantor's death.

Q: Are there any penalties for not filing IRS Form 706-QDT?
A: Yes, failure to file IRS Form 706-QDT or filing it late can result in penalties, including interest charges and potential additional taxes.

Q: Can I file IRS Form 706-QDT electronically?
A: No, IRS Form 706-QDT cannot be filed electronically. It must be filed in paper format and mailed to the appropriate IRS address.

Q: Do I need to hire a professional to help me with IRS Form 706-QDT?
A: While it is not required, it is recommended to seek professional assistance from an estate tax attorney or tax accountant familiar with QDTs to ensure accurate and timely filing.

Q: What supporting documents should I include with IRS Form 706-QDT?
A: You should include a complete inventory of the trust assets, appraisals, and any other relevant documentation that supports the valuation and calculation of estate tax liability.