IRS Form 706-CE – IRS Forms, Instructions, Pubs 2026 – If you’re handling the estate of a deceased individual with assets in foreign countries, navigating U.S. estate taxes can be complex. One key component is claiming a credit for foreign death taxes paid, which requires IRS Form 706-CE. This form certifies that foreign inheritance or estate taxes have been paid, allowing you to offset your U.S. estate tax liability on Form 706. In this comprehensive guide, we’ll cover everything you need to know about Form 706-CE, including its purpose, filing requirements, step-by-step instructions, and recent updates as of 2026. Whether you’re an executor, tax professional, or beneficiary, understanding this form can help ensure compliance and maximize tax credits.
What Is IRS Form 706-CE?
IRS Form 706-CE, officially titled “Certification of Payment of Foreign Death Tax,” is a document used by executors to verify that death taxes imposed by a foreign country have been paid. This certification is essential for claiming a foreign death tax credit on Form 706, the United States Estate (and Generation-Skipping Transfer) Tax Return. The credit helps prevent double taxation on the same assets—once by the foreign government and again by the U.S.
The form applies when the decedent was a U.S. citizen or resident with property subject to foreign death taxes. It’s authorized under Internal Revenue Code Section 2014 and related regulations, and it may also involve death tax treaties between the U.S. and foreign countries. Without proper certification via Form 706-CE, the IRS will not allow the credit, potentially increasing the estate’s tax burden.
Key benefits of filing include:
- Reducing U.S. estate tax liability through credits.
- Ensuring compliance with international tax agreements.
- Providing proof of payment to avoid penalties or audits.
For more details on the foreign death tax credit, refer to Schedule P on Form 706 instructions.
Who Needs to File Form 706-CE?
The executor, administrator, or personal representative of the decedent’s estate is responsible for filing Form 706-CE. This applies if the estate is claiming a credit for foreign death taxes on Form 706. You must file a separate Form 706-CE for each foreign country that imposed a death tax.
Common scenarios include:
- Decedents with real estate, investments, or other assets in countries like Canada, the UK, or France.
- Estates where foreign taxes were paid under a treaty or statute.
- Situations involving multiple inheritances or properties taxed at different rates.
If the foreign government refuses to certify the form, the executor can file directly with the IRS, attaching a statement under penalties of perjury, a copy of the foreign death tax return, and proof of payment (e.g., receipts or canceled checks).
When and Where to File Form 706-CE?
Form 706-CE must be filed before the IRS can approve the foreign death tax credit on Form 706. There is no strict deadline beyond this requirement, but timely filing aligns with the due date for Form 706 (nine months after the date of death, with possible extensions).
Prepare three copies of the form for each foreign country:
- Send the original and one copy to the foreign tax authority for certification. They will forward the certified copy to the IRS.
- Retain the third copy for your records.
Mail the form (if filing directly) to:
Internal Revenue Service Center
Attn: E&G, Stop 824G
7940 Kentucky Drive
Florence, KY 41042-2915
Use a designated private delivery service if preferred. If you receive a refund of any foreign death taxes after filing, notify the IRS within 30 days, as this may require paying additional U.S. estate tax.
How to Complete Form 706-CE: Step-by-Step?
Form 706-CE is divided into three parts. Here’s a breakdown based on the latest revision (August 2025):
Part I: General Information
- Lines 1–5: Enter the decedent’s name, Social Security number, citizenship, domicile, date of death, and last address.
- Lines 6–7: Provide the executor’s name and address.
- Line 8: Check if this is an amended form.
Part II: Foreign Death Tax Paid
- Line 9: Name the foreign government imposing the tax.
- Line 10: Amount of death tax finally determined (in foreign currency, excluding interest/penalties).
- Line 11: Indicate if figured under a death tax convention.
- Line 12: List payment dates and amounts.
- Line 13: Describe property subjected to tax, including values.
- Lines 14–16: Report any refunds claimed, pending credits, or multiple tax rates. Attach additional sheets if needed.
Sign under penalties of perjury, declaring the information true and complete.
Part III: Certification
This section is for the foreign tax official to certify the details. They sign and forward to the IRS.
For the full form, download the PDF from the IRS website: https://www.irs.gov/pub/irs-pdf/f706ce.pdf.
Required Documents and Attachments
To support your filing:
- Copies of the foreign death tax return.
- Receipts or canceled checks for payments.
- Additional sheets for detailed property descriptions or explanations.
- If applicable, a perjury statement if the foreign government doesn’t certify.
Attach these to Form 706 when claiming the credit on Schedule P.
Claiming the Foreign Death Tax Credit on Form 706
To claim the credit:
- Complete Schedule P on Form 706.
- Attach certified Form 706-CE(s).
- Calculate the credit based on the lesser of the foreign tax paid or the U.S. tax attributable to the foreign property.
Treaties may provide more favorable terms—elect them if beneficial. For non-resident aliens, use Form 706-NA instead.
Common Mistakes to Avoid When Filing Form 706-CE
- Failing to prepare three copies or send them correctly.
- Omitting proof of payment or property details.
- Not notifying the IRS of refunds, which could lead to penalties.
- Ignoring treaty provisions that might increase the credit.
- Filing without checking for updates, as forms are revised periodically.
Tip: Consult a tax advisor experienced in international estates to avoid errors.
Recent Updates to Form 706-CE (As of February 2026)
The form was last revised in August 2025, with instructions updated in September 2025. Key changes include minor clarifications on filing addresses and paperwork reduction notices. No significant updates for 2026 have been announced, but check the IRS website for developments. Related Form 706 updates include a reduced estate tax closing letter fee to $56 effective May 21, 2025.
Modernized e-File (MeF) schemas for related forms like Form 709 are available for 2025 processing.
Frequently Asked Questions About IRS Form 706-CE
1. What if the foreign country doesn’t have a death tax treaty with the U.S.?
You can still claim the credit under IRC Section 2014, but treaty benefits may not apply.
2. Can I file Form 706-CE electronically?
Currently, it’s paper-based, but check for e-filing expansions in related estate forms.
3. What happens if I receive a foreign tax refund after filing?
Notify the IRS within 30 days and pay any additional U.S. tax due.
4. Is Form 706-CE required for all foreign assets?
Only if claiming a credit for foreign death taxes paid on those assets.
For more FAQs, visit the IRS resources on estate taxes.
Conclusion
IRS Form 706-CE plays a crucial role in claiming credits for foreign death taxes, helping estates avoid double taxation. By following the filing guidelines and using official IRS resources, you can ensure a smooth process. Always verify the latest information on IRS.gov, as tax laws evolve. If your situation involves complex international elements, seek professional advice to optimize your estate’s tax position.