The taxpayer died in January 20YY. Form 706 is due 9 months after the decedent's death. When will the 20YY version of Form 706, U.S. Estate and Generation Skipping Transfer Tax Return, be available?
You do not need to wait for the corresponding Form 706 - you can use the prior year version. IRS permits Form 706 to be filed for a decedent whose death occurs after the tax year. For example, in Drake 22, you can use Form 706 for a decedent who died in 2022 or 2023.
You cannot use Form 706 for a decedent death that precedes the tax year. Form 706 cannot be updated from one year to another. This is because they are closed out the same year that they are filed.
Keep in mind that the software will make calculations based on the instructions available for the year being prepared. For instance, if the instructions for the 20YY 706 form have not yet been finalized, year specific amounts and calculations, like the exclusion amount, will not populate in the software.
Form 4768, the Application for Extension of Time to File, for Form 706, is available in the software. Data entry for Form 4768 is located on the Supplemental Forms tab, on screen EXT.
Optionally provide private feedback to help us improve this article...
Thank you for your feedback!