The federal estate tax is reduced for taxable estates of individuals who died as a result of the Oklahoma City attack, the September 11 attacks, and the anthrax attacks. The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. These credits may reduce or eliminate the estate tax due.
A special rule extends until January 22, 2003, the period of time allowed to file a claim for a refund of estate taxes that have been paid.
The value of claims for a decedent's pain and suffering is normally included in the gross estate. However, if the estate chooses to seek recovery from this fund, the IRS has determined that, in view of the unique circumstances of this situation and the high likelihood that such claims will be valued at a nominal or zero amount, the claims will be valued at zero for estate tax purposes. Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund.taxmap/pubs/p3920-004.htm#TXMP6dc02504
For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U.S. citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. Use Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension.taxmap/pubs/p3920-004.htm#TXMP2487b8e4
Returns on which the new rate schedule is used should be sent to the following address, which was not available when Form 706 went to print. taxmap/pubs/p3920-004.htm#TXMP74dec475
Internal Revenue Service
E & G Department/Stop 824T
201 W. Rivercenter Blvd.
Covington, KY 41011
For more information on the federal estate tax, see the instructions for Form 706.