According to the instructions, the following items are new:
- Use of the revision is only for the estates of decedents dying in calendar year 2007.
- The maximum tax rate for the estates of decedents dying in 2007 has decreased to 45%.
- The Small Business and Work Opportunity Tax Act of 2007, P.L.110-28, extends the application of income tax return preparer penalties to all tax return preparers, including estate tax return preparers.
- The decedent’s authority over certain financial accounts in a foreign country must be reported on Part 4 – General Information.
- Various dollar amounts and limitations are indexed for inflation, and the following amounts have increased:
- The ceiling on special-use valuation is $940,000, and
- The amount used in computing the 2% portion of estate tax payable in installments is $1,250,000.
Visit the IRS website at www.irs.gov and look under Forms and Publications.
Source: Internal Revenue Service, Form 706 (United States Estate / and Generation-Skipping Transfer Tax Return) and Instructions for Form 706, Forms and Publications – September 28, 2007.