How do I secure a transfer certificate for an estate of a nonresident not a citizen of the United States

To secure a transfer certificate for an estate of a nonresident not a citizen of the United States, follow these steps:

1. Determine the Filing Requirement: Ensure that the estate meets the filing requirement for Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States. This form is required if the value of the decedent’s U.S.-situated assets exceeds $60,000.
2. Prepare Form 706-NA: Complete Form 706-NA to report the U.S.-situated assets of the decedent. The form must include:
   • An inventory of the decedent’s U.S.-situated assets.
   • A schedule of liabilities, claims against the estate, and expenses of administration.
   • A certified copy of the decedent’s will, if applicable.
   • A certified copy of the death certificate.
3. Submit Supporting Documents: Along with Form 706-NA, submit the following documents:
   • Certified copies of any foreign death tax returns filed.
   • Proof of payment of any foreign death taxes.
   • Any other documents required by the IRS to substantiate the values reported on Form 706-NA.
4. Request the Transfer Certificate: After filing Form 706-NA, request a transfer certificate by submitting a written request to the IRS. The request should include:
   • A copy of the filed Form 706-NA.
   • A statement explaining the need for the transfer certificate.
   • Any additional documentation that supports the request.
5. Pay the Estate Tax: Ensure that any U.S. estate tax due is paid. The IRS will not issue a transfer certificate until the estate tax liability is satisfied.
6. Wait for Processing: The IRS will process the request and issue a transfer certificate if all requirements are met. The transfer certificate releases the federal estate tax lien on the decedent’s U.S.-situated property, allowing the transfer of assets to the beneficiaries.

For more detailed instructions and to ensure compliance with all requirements, refer to the IRS instructions for Form 706-NA and the relevant sections of the Internal Revenue Code and Treasury Regulations.

Sources:
Instructions for Form 706-NA (10/2022)
Publication 559 (2023)
IRM Part 4. Examining Process. Chapter 25. Estate and Gift Tax. Section 4. International Estate and Gift Tax Examinations