The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right corner of Form 709 (Page 1).

No action is required on amended returns.

If a complete Paid Preparer's Phone Number is located elsewhere on the return or attachments, edit to the "Phone no." line.

If a complete Paid Preparer's Phone Number is not located or the number is illegible, circle out the incomplete or illegible phone number.

This field is transcribed from the bottom right margin of Page 1, Part 2, Line 20 of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. (This information was transcribed from Line 25 on returns for Tax Years 2002 through 2004, Line 27 on returns for Tax Years 1998 through 2001 and from Line 28 on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, for 1997 and prior years.)

This indicator shows when installments and/or deferments are granted, and/or when U.S. Treasury bonds are submitted in payment of the estate tax.

When needed the correspondence received date is edited in YYYYMMDD format.

The 45–day interest free period for processing refund returns does not begin until we receive the return in a processable format. If we correspond for missing information, the correspondence received date must be input to the Master File for the purpose of computing credit interest.

The Preparer's SSN or PTIN is located to the right of the Preparer's Signature at the bottom right corner of Form 706 (Page 1).

The Preparer's SSN must be a nine digit numeric character. The SSN cannot be all zeros or nines.

A Preparer Tax Identification Number (PTIN) is a valid entry in the Preparer's Social Security Number area at the bottom of Form 706. The PTIN is an eight digit number preceded by the alpha "P" (e.g., PXXXXXXXX).

Circle out the Preparer's SSN or PTIN if it is invalid.

The Preparer's EIN is located below the Preparer's SSN/PTIN at the bottom right corner of Form 706 (Page 1).

The Preparer's EIN must be a nine digit numeric character. The EIN cannot be all zeros or nines.

Circle out the Preparer's EIN if it is invalid.

The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right corner of Form 706 (Page 1).

No action is required on amended returns.

If a complete Paid Preparer's Phone Number is located elsewhere on the return or attachments, edit to the "Phone no." line.

If a complete Paid Preparer's Phone Number is not located or the number is illegible, circle out the incomplete or illegible phone number.

This is a computer-generated field that calculates the return due date as nine months after the Date of Death in YYYYMMDD format.

This field is used to determine if a return is filed timely. If the return is filed late, it is used to calculate any applicable penalties and interest.

Correct transcription errors if the field is not entirely numeric.

If the money amounts on a return exceed the maximum field length allowable, take the following action:

The Error Record Format for Section 02 is as follows:

This field is transcribed from Page 1, Part 2, Line 1, of the return and is verified by Code and Edit tax examiners. It is transferred from Page 3, Part 5, Item number 12, 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 or dollars only, whichever is applicable.

This line shows the total amount of assets owned by the decedent at death. After deductions are taken and 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.

This field is transcribed from Page 1, Part 2, Line 2 of the return and is verified by Code and Edit examiners. It is transferred from Page 3, Part 5, Item number 22 of the return. The amount transcribed will be either the taxpayer's amount or the examiner's corrected amounts.

After allowable deductions are taken and 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.

This field is transcribed from Page 1, Part 2, Line 3a of the return. It is computed by subtracting Page 1, Part 2, Line 2 from Line 1 (Fields 0202 and 0201). This field can be positive or zero.

This field is transcribed from Page 1, Part 2, Line 3b of the return. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

The state death tax credit has been repealed for estates of decedents dying after December 31, 2004. Beginning in 2005, the credit was replaced with a state death tax deduction against the value of the gross federal estate.

This field is transcribed from Page 1, Part 2, Line 3c of the return. It is computed by subtracting Page 1, Part 2, Line 3b from Line 3a (Fields 0203B and 0203A). This field can be positive or zero.

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.

This field is transcribed from Page 1, Part 2, Line 4 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 Internal Revenue Code must be added to the taxable estate to determine the amount upon which estate tax can be imposed.

This field is transcribed from Page 1, Part 2, Line 5 of the return. It is computed by adding Page 1, Part 2, Lines 3C and 4 (Fields 0203C and 0204).

This is the amount on which the tentative tax is calculated.

This field is transcribed from Page 1, Part 2, Line 6. The computer figures the tax in this field by using the amount in Net Taxable Estate Computer and Tax Table A on Page 4 of the instructions.

This is the basic estate tax, subject to adjustments.

This field is transcribed from Page 1, Part 2, Line 7. It is the total amount of gift tax payable on gifts made after December 31, 1976.

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

This field is transcribed from Page 1, Part 2, Line 8 (Field 0208). It is computed by subtracting Page 1, Part 2, Line 7 from Line 6 (Fields 0207 and 0206).

See IRM 3.12.263.5.11, Field 0207-Aggregate Gift Tax, for the reasons this field allows gift taxes paid to be subtracted from estate tax.

This field is transcribed from Page 1, Part 2, Line 9 (Field 0209). Most returns (1997 and prior) will show the amount of the Unified Credit preprinted. The computer will math verify this field by using the Date of Death (Field 01DOD) and the Unified Credit amounts.

The Unified Credit is similar to the standard deduction or personal exemptions allowed on an individual income tax return. Individuals do not pay income tax on income that is less than the total amount of the standard deduction or personal exemptions. Nor do they pay estate or gift taxes on gifts or bequests whose total tax is less than the Unified Credit. There are two differences between the Unified Credit and the standard deduction/personal exemption. First the Unified Credit is a credit against tax, not a deduction from income or assets. The credit is subtracted against the estate tax, not the total amount of the estate. Second, the Unified Credit is much larger than the standard deduction/personal exemption.

The current Unified Credit of $1,455,800 exempts from estate tax the first $3,500,000 for 2009 of transfers at death; Unified Credit of $780,800 (2006-2008) and $2,000,000; Unified Credit of $555,800 (2004-2005) and $1,500,000; Unified Credit of $345,800 (2002-2003) and $1 million; Unified Credit of $220,550 (2000-2001) and $675,000; Unified Credit of $211,300 (1999) and $650,000; Unified Credit of $202,050 (1998) and $625,000 of transfers at death.

The Unified Credit for the following years is:

This field is transcribed from Page 1, Part 2, Line 10. The maximum allowable credit is $6,000 for this field.

At the time the current Unified Credit system was created, Congress provided that the taxpayer's use of the former gift tax exemption for gifts made between September 8 and December 31, 1976, would result in an adjustment to the Unified Credit applicable to the taxpayer's transfers after 1976 (reduction in Unified Credit is 20% of exemption claimed).

This field is transcribed from Page 1, Part 2, Line 11. It is computed by subtracting Page 1, Part 2, Line 10 from Line 9 (Fields 0210 and 0209).

At the time the Unified Credit was created, Congress provided that the taxpayer's use of the former gift tax exemption for gifts made between September 8, and December 31, 1976, would result in an adjustment to the Unified Credit applicable to the taxpayer's transfers after 1976.

This field is transcribed from Page 1, Part 2, Line 12. It is computed by subtracting Page 1, Part 2, Line 11 from Line 8 (Fields 0211 and 0208).

This field allows the Unified Credit, as adjusted, to be subtracted from the estate tax.