Q:

What is IRS Form 706-GS(D)?

A:

Quick Answer

IRS Form 706-GS(D) is the Generation-Skipping Transfer Tax Return for Distributions form, explains the IRS. The skip distributee uses this form to calculate and report any tax due on trust distributions that are subject to the generation-skipping transfer tax.

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Full Answer

Generally, all taxable distributions are subject to the generation-skipping tax. A distribution is considered taxable if it is made from a trust to a skip person, notes the IRS. If any generation-skipping tax imposed on a distribution is paid out of the trust from which the distribution was made, the amount of tax paid by the trust is also considered a taxable distribution.

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