Form 706 does not tax an "inheritance", it taxes the "Estate". In other words, it should be filed and the taxes paid before the beneficiary receives their "inheritance". The receiver doesn't pay any Federal taxes on their inheritance (any taxes were already paid by the Estate), but some States do charge an Inheritance tax.

As SweetieJean mentioned, you should consult a tax professional and/or estate attorney.

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SweetieJean

Employee

I wonder if this is a homework question.

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SweetieJeanAnswer

Employee

TT is an income tax software program, and does not support Form 706.

Please see a tax professional or estate attorney in your area.