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Discussion Forum Index --> Basic Tax Questions --> Delinquent Form 706
Discussion Forum Index --> Tax Questions --> Delinquent Form 706
Rawcpa (talk|edits) said:
| 10 June 2008
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| I received an estate from a death in 2006. The family wishes to file a 706 even though it is a nontaxable estate. Single widower gross estate approx $1.1 million. I agree with the benefits of filing for basis etc. Does anyone have an opinion on whether there will be a penalty? I know information returns typically get assessed $750.
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Dennis (talk|edits) said:
| 10 June 2008
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| 706 is not an information return. There would be no penalty, however filing does not establish basis.
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Rawcpa (talk|edits) said:
| 10 June 2008
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| Dennis: Thanks for the rapid reply. I know a 706 is not an information return but I am sure you have seen the IRS assess the $750 penalty on say a deliquent 990 or 1065. My basis comment was merely that it is a declaration of basis (if unchallenged) say for stocks, real estate etc that is inherited. Thanks again. I have never used this forum and I shall in the future.
Robert
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Dennis (talk|edits) said:
| 10 June 2008
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| Wouldn't know a 990 if one sat on me. Only estates and trusts. No filing requirement, no penalty. You have to do all the valuations whether you file or not. Declaration of basis is a meaningless concept.
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Adunncpa (talk|edits) said:
| 11 June 2008
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| Did the estate go through probate? Typically the assets are listed during probate and include the basis at time of death.
Anthony
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Lancermc (talk|edits) said:
| 11 June 2008
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| You get the step up (or down as the case may be) to basis at date of death, even if no 706 is required.
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