The draft Form 706 was posted to the IRS website. For your convenience, here is a direct link to the form http://www.irs.gov/pub/irs-dft/f706–dft.pdf.  It will only be used for decedents dying in 2010.  If electing the modified carryover basis and zero estate tax, the instructions to the form still don’t explain how to make the election. 

Remember thought that earlier this year, they issued a draft Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent.  However, there has been no further guidance regarding this Form 8939 since then.

Reminders applicable to the new Form 706:

• For decedents dying between Jan. 1, 2010 and Dec. 16, 2010, the due date for Form 706 is Sept. 19, 2011.
• The applicable exclusion amount is $5 million.
• The maximum estate tax rate is 35%.
• The applicable rate for generation-skipping transfers (GSTs) is zero.
• Prior gifts must be calculated at the rate in effect at the decedent’s date of death.