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ID Form 706-NA: What You Should Know
This form may be found on either the IRS website or on an individual's United States tax return or other paper document filed with the IRS. This form may also be obtained by calling the IRS toll-free at and speaking to the “Individuals With U.S.-Based Assets With Respect to Which a Tax Filing Is Not Needed” option (see link below for more details). Form 706-NA Requirements In order to use the Form 706 to report the death of a nonresident alien, a nonresident alien decedent must have been a citizen of the United States at the time of death: If the decedent was not a U.S. citizen, but was not a resident of the U.S., the estate need only complete and issue a Form 706-1 N if the decedent was a U.S. citizen and not a resident of the U.S. Individuals that hold capital gain interests in the estates of a United States resident decedents (as indicated on the decedent's United States Federal income tax return) or a foreign person and a nonresident alien decedent (a U.S. or foreign nonresident alien) must file a copy of Form 706-1 N in conjunction with the estate tax return of the foreign person or individual so that the nonresident alien decedent can be included. A non-resident alien may also choose to file Form 706-1 N if the decedent: (i) was a United States citizen at the time of death The U.S. estate tax is assessed on the death of an individual who is a citizen of the United States or who was a resident of the United States throughout the nonrecurring portion of the decedent's tax year. If the U.S. estate tax is not assessed or the nonresident alien decedent's tax liability is reduced based on death, survivors, estate, etc., as described in the instructions for Form 706-1 N, the estate is not required to file the tax return. US Estate Tax, the IRS & Form 706-NA — Lester Aldridge If Form 706-1 N is filed and the executor does not use the IRS' instructions to claim that the decedent was not a citizen, the IRS will require the executor to file, and collect and pay a penalty.
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