Preparing Form 706: The Federal Estate Tax Return

Description

In this revised course, review the basics of preparing a federal estate tax return (Form 706) and making the portability election for the estate of the deceased spouse. Learn about the portability of the deceased spousal unused exclusion amount, which is a fast-growing compliance opportunity for your clients; how the portability election can provide significant estate tax insurance for the surviving spouse and income tax insurance for beneficiaries; and how to complete each of the schedules, make available elections, discuss the changes arising from the 2012 Tax Act and review the most recent edition of Form 706. Also, review the new income tax basis consistency reporting rules with the preparation of Form 706.

Note: A companion course, Advanced Issues: The Art of the Estate Tax Return, presents in-depth discussion of issues, tax-saving strategies and planning alternatives with Form 706 using the instructor's book, Art of the Estate Tax Return (2nd ed.), Bloomberg BNA Books.

Highlights

• Filing requirements, new forms and IRS return review procedures.
• Estate tax return terminology.
• Action steps upon receipt of the engagement to prepare Form 706.
• When to use or eschew simplified reporting while making DSUEA elections.
• Basis consistency rules and integration with the Form 706.
• QTIP elections with otherwise bypass/credit-shelter trusts.
• Practice forms to attach to the estate tax return.
• Marital deduction elections.
• Practice tips for penalty avoidance.
• Reporting elections: Sec. 6166, QTIP, reverse QTIP, QDOT, alternate value and Sec. 2032A.

Objectives

• Determine how to prepare each schedule to the estate tax return (Form 706).
• Identify how to present returns to minimize audit risks.
• Recognize protective and perfected refund claims with estate tax.
• Determine portability elections to benefit from the deceased spousal unused exclusion amount (DSUEA).
• Identify and discuss rules to deduct expenses and liabilities, including protective refund claims (and Schedule PC) and extra demands, as well as calendaring needed for your office.

Designed For

Attorneys, CPAs and tax practitioners who wish to understand Form 706 return preparation basics.