Table of Contents
Things You Should Know About This Form
What is the IA 706 Iowa Inheritance Tax Return?
The IA 706 form is used to report and calculate the inheritance tax owed on the estate of a deceased person in Iowa. This form gathers information about the decedent, their assets, and the beneficiaries. It is essential for ensuring compliance with Iowa tax laws regarding inheritance.
Who is required to file the IA 706 form?
The executor or personal representative of the estate must file the IA 706 form. If the decedent had a will, the executor named in the will is responsible. If there is no will, the court will appoint someone to handle the estate, and that person will need to file the form.
What information is needed to complete the IA 706 form?
To complete the IA 706 form, you will need the following information:
- Decedent's full name and Social Security Number.
- Decedent's last address and age at death.
- Executor's name, Social Security Number, and mailing address.
- Details about the decedent's estate, including the total value of real estate and other property.
- Information about the beneficiaries, their relationship to the decedent, and their share of the inheritance.
What are the penalties for not filing the IA 706 form on time?
Failing to file the IA 706 form by the deadline can result in penalties. The Iowa Department of Revenue may impose fines or interest on any unpaid taxes. It is crucial to file the form promptly to avoid these additional costs.
How can I pay the inheritance tax due?
You can pay the inheritance tax due by check made payable to the Iowa Department of Revenue. When you pay by check, you authorize the Department to convert it into a one-time electronic banking transaction. Ensure that the payment is included with the IA 706 form when you submit it.
What should I do if I have questions while filling out the IA 706 form?
If you have questions while completing the IA 706 form, it is advisable to consult with a tax professional or an attorney who specializes in estate planning. They can provide guidance specific to your situation and help ensure that the form is completed accurately.
Form Features
| Fact Name | Details |
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| Form Purpose | The IA 706 form is used to report and pay Iowa inheritance tax on the estate of a deceased individual. |
| Governing Law | This form is governed by Iowa Code section 450, which outlines the inheritance tax laws in the state. |
| Executor Information | The form requires the executor's name, Social Security Number, and mailing address, ensuring proper communication with the Iowa Department of Revenue. |
| Computation of Shares | It includes sections for calculating the total value of the estate, allowable deductions, and the inheritance tax due based on the net estate. |
| Beneficiary Details | Beneficiary information, including their age, relationship to the decedent, and share of the inheritance, must be detailed on the form. |
| Filing Requirements | The completed form must be mailed to the Iowa Department of Revenue, along with any required documentation, such as copies of the will or trust agreements. |
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Key takeaways
- Understand the Purpose: The IA 706 form is used to report the inheritance tax due on the estate of a deceased person in Iowa.
- Gather Required Information: Collect all necessary details about the decedent, including their full name, Social Security Number, and last address.
- Identify the Executor: Clearly state the name and contact information of the executor responsible for managing the estate.
- Complete Property Valuation: Accurately report the total value of real estate and other property to determine the gross estate.
- Calculate Deductions: Include all allowable deductions to arrive at the net estate value.
- List Beneficiaries: Provide names, ages, and relationships of beneficiaries, along with their shares of the estate.
- Check for Prior Payments: Note any inheritance tax that has already been paid to ensure accurate calculation of the tax due.
- Include Necessary Documents: Attach required documents, such as a copy of the will or trust agreement, if applicable.
- File Timely: Submit the completed form and any payments to the Iowa Department of Revenue by the deadline to avoid penalties.
Sample - Ia 706 Iowa Form
IA 706 Iowa Inheritance Tax Return
tax.iowa.gov
Decedent’s first name and middle initial: ___________________________ Decedent’s last name: ____________________________
Decedent’s last address (domicile at time of death): __________________________________________________________________
City:____________________ State:______ ZIP: ____________ Decedent’s Social Security Number (SSN): ___________________
Estate Federal Employer Identification Number: _______________ Age at Death:______ Date of Death (MM/DD/YYYY): __________
Name of Executor: ____________________________________________ Executor’s SSN: _________________________________
Executor’s mailing address: _____________________________________ City:_____________ State: ________ ZIP: __________
Iowa county where will was probated or estate administered: _______________________ Probate number: _____________________
Taxpayer information is confidential. Ordinarily, the Iowa Department of Revenue will only discuss confidential tax information with the taxpayer, or the taxpayer’s power of attorney. However, the Department can discuss confidential state tax information with an individual authorized under a tax information disclosure designation, but only to the extent permitted by such designation. This form may be used to authorize one individual to act as power of attorney, or to designate an individual to receive tax information about this estate. Complete the appropriate section(s) below.
To authorize multiple individuals to act as POAs or disclosure designees, you must utilize forms IA2848, IA2848A, IA8821, and IA8821A.
POWER OF ATTORNEY AUTHORIZATION (POA)
Authorization is granted to the person listed below act as the estate’s representative before the Iowa Department of Revenue, to make written or oral presentation on behalf of the estate, and to receive confidential state tax information under Iowa Code section 450.68, including an inheritance tax clearance. This authorization is limited to those acts and information relevant to this return, and does not authorize the representative to receive federal tax information.
Name: ______________________________________________________ |
Phone:_________________________________________ |
SSN ☐/ ITIN ☐/ PTIN ☐/ IAN ☐: ________________________________ |
Email: _________________________________________ |
Mailing address: ______________________________________________ |
City:__________________ State: _______ ZIP:________ |
DESIGNATION FOR TAX DISCLOSURE (for individuals not authorized to act on behalf of the taxpayer)
This designation allows for the designee to receive the estate’s confidential state tax information in regard to this return. This designation does not authorize a designee to represent the estate or receive federal tax information.
Name: ______________________________________________________ |
Phone:_________________________________________ |
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SSN ☐/ ITIN ☐/ PTIN ☐/ IAN ☐: ________________________________ |
Email: _________________________________________ |
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Mailing address: ______________________________________________ |
City:__________________ State: _______ ZIP:________ |
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COMPUTATION OF SHARES AND TAX ON NET ESTATE |
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1. |
Total Value of Real Estate from Schedules A, E, and G |
1.___________________ |
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2. |
Total Value of All Other Property reported on Schedules B, C, D, E, F, G, H, and I |
2.___________________ |
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3. |
Total Gross Estate. Add lines 1 and 2. Must equal line 35, page 2 |
3.___________________ |
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4. |
Total Allowable Deductions from line 39, page 2 |
4.___________________ |
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5. |
Net Estate. Subtract line 4 from line 3 |
5.___________________ |
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6.Computation of Shares and Tax (if there is more than one beneficiary, please fill out a Continuation schedule)
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Name and Address of Beneficiary |
Age |
SSN |
Relationship |
Share |
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Inheritance Tax |
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7. |
Total shares must equal net estate. Include any additional computation sheets |
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7. |
___________________ |
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8. |
Total Inheritance Tax |
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8. |
___________________ |
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9. |
Tax Previously Paid |
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9. |
___________________ |
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10. |
Tax due. If line 8 is greater than line 9, enter the difference |
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10. |
___________________ |
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11. |
Penalty. See instructions |
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11. |
___________________ |
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12. |
Interest |
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12. |
___________________ |
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13. |
Refund. If line 9 is greater than line 8, enter the difference |
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13. |
___________________ |
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14. |
Total due. Add lines 10, 11, and 12 |
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14. |
___________________ |
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IA 706, page 2
15. |
Marital status of decedent at death: Married ☐ |
Widow(er) ☐ |
Single ☐ |
Divorced ☐ |
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The relationship of decedent’s children to surviving spouse must be included if decedent died intestate. |
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16. |
Were any children born to or adopted by the decedent after execution of the last will? |
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Yes ☐ |
No ☐ |
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In all cases of adoption, include a copy of the decree. |
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17. |
Decedent’s occupation before death: __________________________________________________________________________ |
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18. |
Decedent died: Intestate (include heirship chart) |
☐ |
Estate has trust (include trust agreement) |
☐ |
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Testate (include copy of will) |
☐ |
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19. |
Election of spouse. Submit copy of election: Under will ☐ |
Distributive share ☐ |
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20. |
Was a disclaimer filed? If yes, submit copy of disclaimer |
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Yes ☐ |
No ☐ |
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21. |
Do you elect the special use valuation? |
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Yes ☐ |
No ☐ |
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22. |
Was a federal estate tax return filed? If yes, submit copy |
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Yes ☐ |
No ☐ |
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23. |
Do you elect to claim qualified terminal interest property (QTIP) under Iowa Code 450.3(7) and Internal Revenue |
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Code (IRC) section 2056(b)(7)(B)? If yes, include copy of Schedule M of federal estate tax return |
....................... |
Yes ☐ |
No ☐ |
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24. |
Do you elect to pay the federal estate tax in installments as described in IRC section 6166? |
Yes ☐ |
No ☐ |
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25. |
Do you elect the alternate valuations under Iowa Code section 450.37 (IRC section 2032)? |
Yes ☐ |
No ☐ |
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Summary of Gross Estate |
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Alternate |
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Value at Date |
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Include applicable schedules only. Federal schedules may be used in place of Iowa schedules. |
Value |
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of Death |
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26. |
Real Estate, from Schedule A |
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26. |
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27. |
Stocks and Bonds, from Schedule B |
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27. |
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28. |
Mortgages, Notes, and Cash, from Schedule C |
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28. |
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29. |
....................Insurance on Decedent’s Life, from Schedule D. Include federal form(s) 712 |
29. |
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30. |
Jointly Owned Property, from Schedule E |
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30. |
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31. |
Other Miscellaneous Property, from Schedule F |
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31. |
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32. |
.........................................................Transfers During Decedent’s Life, from Schedule G. |
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32. |
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33. |
Powers of Appointment, from Schedule H |
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33. |
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34. |
.........................................Annuities, Section 529 plans, and ABLE plans from Schedule I |
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34. |
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35. |
. ................Total Gross Estate. Add lines 26 through 34. Enter here and on page 1, line 3 |
35. |
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Summary of Deductions – Include Schedules J and K. |
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36. |
Funeral and Administrative expenses, from Schedule J |
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36.___________________ |
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37. |
Debts of Decedent, from Schedule K, part I |
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37.___________________ |
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38. |
Iowa Mortgages and Liens, from Schedule K, part II |
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38.___________________ |
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39. |
Total Deductions. Add lines 36 through 38. Enter here and on page 1, line 4 |
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39.___________________ |
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For the Summary of Real and Personal Property Located Outside of Iowa not included in Lines
Summary of Real and Personal Property Located Outside of Iowa Schedule |
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40. Add all real and personal property items located outside of Iowa as listed on the Summary Statement |
$___________________ |
I, the undersigned, declare under penalties of perjury or false certificate, that I have examined this return, and, to the best of my knowledge and belief, it is true, correct, and complete.
Signature: _________________________________ Capacity or Title: ____________________________________ Date:__________
Preparer’s signature: ________________________ PTIN: ______________________ Phone: ________________ Date:__________
Make checks payable to Iowa Department of Revenue. When you pay by check, you authorize the Department of Revenue to convert your check to a
Mail to: Fiduciary/Inheritance Section
Iowa Department of Revenue
PO Box 10467
Des Moines IA
Similar forms
The IA 706 Iowa Inheritance Tax Return shares similarities with the IRS Form 706, which is the United States Estate (and Generation-Skipping Transfer) Tax Return. Both forms serve the purpose of reporting the value of an estate and calculating the taxes owed. The IRS Form 706 requires information about the decedent, the value of the estate, and deductions, similar to the IA 706. However, while the IA 706 focuses specifically on Iowa inheritance tax, the IRS Form 706 addresses federal estate taxes, making it essential for estates exceeding a certain value threshold at the federal level.
Another document comparable to the IA 706 is the Illinois Form 700, the Illinois Estate Tax Return. Like the IA 706, the Illinois Form 700 is used to report the estate's value and calculate the corresponding taxes. Both forms require details about the decedent, beneficiaries, and the overall estate value. However, the Illinois Form 700 is tailored to Illinois state tax laws, while the IA 706 aligns with Iowa's regulations, which can lead to different tax rates and exemptions.
The New York State Form ET-706 also resembles the IA 706. This form is utilized for reporting estate taxes in New York and requires similar information regarding the decedent, the estate's value, and the calculation of taxes owed. Both forms involve the computation of shares and inheritance taxes, but the ET-706 is specific to New York state laws, which may differ in terms of exemptions and tax rates compared to Iowa.
When navigating rental agreements in California, it is crucial to utilize the appropriate documentation to ensure a smooth leasing process. For instance, a useful resource for drafting a lease is the californiapdf.com/editable-residential-lease-agreement, which provides an editable template that can be tailored to meet the specific needs of both landlords and tenants, promoting clarity in their rental arrangement.
The California Form 706 is another document that parallels the IA 706. California's estate tax return requires detailed information about the decedent's estate, similar to the IA 706. Both forms seek to determine the tax liability based on the estate's value and applicable deductions. However, California currently does not impose an estate tax, making the context of the Form 706 different from that of the IA 706, which is focused on inheritance tax.
The Pennsylvania Inheritance Tax Return (Form REV-1500) is also akin to the IA 706. Both forms require the reporting of the estate's value and the calculation of taxes owed to the state. They both include sections for detailing beneficiaries and their respective shares. However, Pennsylvania's form is centered on inheritance tax, while the IA 706 specifically addresses Iowa's inheritance tax requirements, which may include different rates and exemptions.
The Florida Estate Tax Return is another document that bears similarities to the IA 706. While Florida does not currently impose an estate tax, the return is still relevant for estates that may have previously been subject to tax. Both forms require information about the decedent and the estate's value. The IA 706, however, is focused on inheritance tax, making it essential for Iowa residents, whereas Florida's form is largely historical in nature.
Finally, the Texas Estate Tax Return is a relevant comparison. Although Texas has no estate tax, the return is used for reporting purposes when applicable. Both the IA 706 and the Texas form require detailed information about the decedent and the estate. However, the IA 706 is specifically designed for Iowa's inheritance tax, while the Texas form serves a different purpose due to the absence of an estate tax in the state.