Outline
The Wisconsin W706 form plays a critical role in the estate tax process for both resident and nonresident decedents. This form is essential for reporting the estate's value and calculating the applicable taxes owed to the state. If the date of death occurs on or after January 1, 1992, the W706 must be completed and submitted. Information required on the form includes the decedent's date of birth, social security number, and address at the time of death, as well as details about the surviving spouse and the probate case number. The form also prompts the filer to determine if a closing certificate for fiduciaries is necessary to finalize the estate with the circuit court. To accurately assess the estate tax, the gross value of property located in Wisconsin must be calculated, alongside the total estate value reported on the federal estate tax return, Form 706. The W706 then guides the taxpayer through the computation of the Wisconsin estate tax, including any interest or penalties that may apply. Finally, the form requires a declaration from the personal representative or other authorized individual, affirming that a thorough search for the decedent's property has been conducted and that the information provided is accurate and complete. Understanding the nuances of this form is crucial for ensuring compliance and facilitating a smoother estate settlement process.
Steps to Filling Out Wisconsin W706
Filling out the Wisconsin W706 form is an important step in the estate tax process. After completing the form, it will need to be submitted to the Wisconsin Department of Revenue along with any necessary documentation. Here’s how to fill it out step by step.
- Begin by entering the estate's name and the date of death of the decedent at the top of the form.
- Fill in the date of birth and the social security number of the decedent.
- Provide the address of the decedent at the time of death, including city, state, and ZIP code.
- Enter the first name of the surviving spouse, if applicable.
- Indicate the county where the estate is being probated.
- Specify the type of proceeding and the probate case number.
- Answer whether a closing certificate for fiduciaries will be needed to close the estate with the circuit court by checking "Yes" or "No."
- Attach a complete copy of the Federal Estate Tax Return (Form 706) to the W706 form.
- In the computation section, enter the total state death credit allowable from the Federal Form 706 on line 1.
- On line 2, report the gross value of property in Wisconsin.
- On line 3, enter the gross value of the total estate as reported on the Federal Form 706.
- Calculate the percent of property in Wisconsin by dividing line 2 by line 3 and enter it on line 4.
- On line 5, calculate the Wisconsin estate tax by multiplying line 1 by line 4.
- For line 6, enter the interest amount at 12% for the specified period.
- On line 7, include any applicable penalty as instructed.
- Add lines 5, 6, and 7 to find the total tax, interest, and penalty on line 8.
- On line 9, enter any previous payment made, including the date.
- Calculate the balance due on line 10 by subtracting line 9 from line 8, if line 9 is less than line 8.
- If line 9 is greater than line 8, calculate the refund on line 11 by subtracting line 8 from line 9.
- Complete the declaration section, signing and dating it appropriately.
- If someone else prepared the return, fill out the preparer's information, including their name, address, signature, date, and telephone number.
- Finally, provide the name and address of the individual or firm to which the certificate determining Wisconsin estate tax should be mailed.
Key takeaways
When dealing with the Wisconsin W706 form, understanding the key aspects can simplify the process significantly. Here are some important takeaways:
- Purpose of the Form: The W706 form is used for reporting estate taxes for both resident and nonresident decedents who passed away on or after January 1, 1992.
- Filing Requirement: It is essential to file this form if the decedent's estate exceeds the threshold for estate taxes in Wisconsin.
- Include Federal Return: Attach a complete copy of the Federal Estate Tax Return, Form 706, when submitting the W706.
- Deadline: Be mindful of the filing deadline, which is generally nine months after the date of death.
- Payment Instructions: Make checks payable to the Wisconsin Department of Revenue and mail them to the specified address in Madison, Wisconsin.
- Interest and Penalties: If taxes are not paid on time, interest at a rate of 12% may apply, along with potential penalties.
- Refunds: If there was a previous payment that exceeds the total tax due, you can claim a refund by completing the appropriate section on the form.
- Signature Requirement: A declaration must be signed by the personal representative or another authorized individual, affirming the accuracy of the information provided.
- Contact Information: For assistance, you can reach the Wisconsin Department of Revenue at their designated telephone numbers, including TDD services for the hearing impaired.
By keeping these points in mind, you can navigate the W706 form more effectively, ensuring compliance with Wisconsin estate tax regulations.
More PDF Templates
Wisconsin Mv2449 - Permits are valid for a period of 72 hours from the date of certification.
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Documents used along the form
When dealing with the Wisconsin W706 form, it's essential to understand that several other documents often accompany it. These forms help provide a complete picture of the estate's financial situation and ensure compliance with state regulations. Below is a list of some commonly used forms that you may encounter in this process.
- Wisconsin Form 706: This is the federal estate tax return that provides detailed information about the decedent's estate. It calculates the gross value of the estate and any deductions that may apply.
- Texas Vehicle Purchase Agreement: This document outlines the terms of sale for vehicles in Texas and ensures that both buyer and seller are protected during the transaction. For a comprehensive template, you can refer to the PDF Document Service.
- Wisconsin Form 1: This is the state income tax return for individuals. If the decedent had income prior to their passing, this form may need to be filed to settle any outstanding tax obligations.
- Wisconsin Form 6: This form is used to report and pay any Wisconsin inheritance tax owed by the heirs of the estate. It helps ensure that all taxes related to the inheritance are properly accounted for.
- Power of Attorney: If someone is managing the estate on behalf of the decedent, a power of attorney document may be necessary. This form grants legal authority to act on behalf of the decedent in financial matters.
- Will: The decedent’s will outlines their wishes regarding the distribution of their assets. It is a crucial document that guides the probate process and ensures that the decedent's intentions are honored.
- Inventory of Assets: This document lists all the assets owned by the decedent at the time of their death. It helps establish the value of the estate and is often required for probate proceedings.
- Affidavit of Heirship: In cases where there is no will, this document can help establish who the legal heirs are. It provides a sworn statement regarding the relationship of the heirs to the decedent.
Understanding these forms and their purposes can simplify the process of managing an estate. Each document plays a vital role in ensuring that all legal requirements are met and that the estate is settled according to the decedent's wishes. Having everything organized can make a challenging time a bit more manageable.