When is an estate tax return (Form 706) required to be filed for a U.S. citizen?

The requirement to file an estate tax return (Form 706) for a U.S. citizen is triggered when the value of the estate exceeds the IRS established exemption amount. This exemption amount is set by the IRS and can change annually based on inflation adjustments and tax law changes. If the estate's total value surpasses this threshold, the executor or responsible party must file the return, as it determines any estate tax owed.

Filing the Form 706 is essential because it provides the IRS with the information needed to assess the tax liability based on the estate's value at the time of the decedent's death. This requirement ensures proper taxation and reporting for large estates, helping to manage the federal government's revenues effectively.

While situations such as dying intestate, having an estate with gross value over $600,000, or assets that are not subject to probate may be relevant in some contexts, they do not independently dictate the necessity to file the estate tax return. The critical factor is whether the estate exceeds the established exemption amount.