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Part 3. Submission Processing

Chapter 12. Error Resolution

Section 263. Estate and Gift Tax Returns - Error Resolution System (ERS) Corrections (Cont. 16)

3.12.263  Estate and Gift Tax Returns - Error Resolution System (ERS) Corrections (Cont. 16)

3.12.263.15 
Math Consistency - Priority IV Errors (Form 709)

3.12.263.15.32 
Error Code 448

3.12.263.15.32.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 11—"We found an error in the computation of your total taxable gifts Page 1, Part 2, Line 3."

    2. TPNC 12—"We found an error in the computation of tax on Page 1, Part 2, Line 4, Tax computed on the amount on Line 3."

    3. TPNC 41 - "We found an error in the computation of the Unified Credit amount."

    4. TPNC 69—"We found an error in total gift tax computation on Page 1, Part 2, Line 6, Balance."

    5. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    6. Any previously-assigned TPNCs.

3.12.263.15.33  (01-01-2009)
Error Code 452

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    01TXP Tax Period
    0302 Prior Taxable Gifts
    0305 Total Tax Taxpayer (Prior)
    >>>> Total Tax Taxpayer (Prior) (Computer)

3.12.263.15.33.1  (01-01-2009)
Invalid Conditions

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.33.2  (01-01-2009)
Correction Procedures

  1. Correct all coding and transcription errors.

  2. Field 0305 is transcribed from Line 5, Page 1, Part 2. It is computed by multiplying the tax rates in effect for the amount on Line 2 (Field 0302).

    1. Compare the entries on the return against the screen. If either of the taxpayer's entries was incorrect, issue the appropriate TPNC.

      Caution:

      Do not issue any TPNCs without first checking the Tax Period.

    2. If Field 0305 underprinted, verify the tax on Line 2 (Field 0302). See Exhibit 3.12.263-5.

    3. Issue TPNC 13 and 41 if the taxpayer's entry on Line 5 was incorrect.

3.12.263.15.33.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 13—"We found an error in the computation of tax on Page 1, Part 2, Line 5, Tax computed on the amount on Line 2."

    2. TPNC 41—"We found an error in the computation of the Unified Credit amount."

    3. TPNC 69—"We found an error in the computation on Page 1, Part 2, Line 6, Balance."

    4. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    5. Any previously-assigned TPNCs.

3.12.263.15.34  (01-01-2009)
Error Code 456

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    01TXP Tax Period
    0304 Total Tax Taxpayer (Current)
    >>>> Total Tax Taxpayer (Current) (Computer)
    0305 Total Tax Taxpayer (Prior)
    >>>> Total Tax Taxpayer (Prior) (Computer)
    0306 Balance of Gift Tax
    >>>> Balance of Gift Tax (Computer)
    03BTV Balance of Tax Verified

3.12.263.15.34.1  (01-01-2009)
Invalid Condition

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.34.2  (01-01-2009)
Correction Procedures

  1. Correct all coding and transcription errors.

  2. Field 0306 is transcribed from Line 6, Page 1, Part 2. It is computed by subtracting Field 0305 (Line 5) from Field 0304 (Line 4).

  3. Compare the return against Fields 0304, 0305, and 0306 on the screen. If either of these fields underprinted, manually verify the computation of Fields 0304, 0305, and 0306 and enter the result in Field 03BTV (Balance of Tax Verified). Issue the appropriate TPNC if any of the taxpayer's entries were incorrect).

    Caution:

    Be certain the correct tax period is entered in Field 01TXP before making any corrections.

    1. If an error in Field 0306 caused an underprint, send TPNC 69 if the taxpayer's entry on Line 6 was incorrect.

    2. If tax is zero, enter $1 (one dollar) in Field 03BTV.

3.12.263.15.34.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 10—"We found an error in the computation of your taxable gifts for the current period."

    2. TPNC 12—"We found an error in the computation of tax on Page 1, Part 2, Line 4, Tax computed on the amount on Line 3."

    3. TPNC 13—"We found an error in the computation of tax on Page 1, Part 2, Line 5, Tax computed on the amount on Line 2."

    4. TPNC 69—"We found an error in the computation on Page 1, Part 2, Line 6, Balance."

    5. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    6. Any previously-assigned TPNCs.

3.12.263.15.35  (01-01-2009)
Error Code 460

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    01TXP Tax Period
    0307> Unified Credit Amount
    0308 Unified Credit Prior
    0309 Balance After Unified Credit
    >>>> Balance After Unified Credit (Computer)

3.12.263.15.35.1  (01-01-2009)
Invalid Condition

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.35.2  (01-01-2009)
Correction Procedures

  1. Correct all coding and transcription errors.

  2. Field 0309 is transcribed from Line 9, Page 1, Part 2, and is computed by subtracting Field 0308 from one of the following amounts (which the program will generate (for the appropriate tax period) in Field 0307>.):

    1. $345,800 (for decedents dying in 2002 through 2010).

      Note:

      The Unified Credit for Gift Tax returns will remain at $345,800 from 2002 through 2010. See IRM 3.12.263.14.4.10, Field 0309-Balance After Unified Credit Amount . The Unified Credit charts will display higher Unified Credit amounts for Forms 706, United States Estate (and Generation-Skipping Transfer) Tax Return, after 2003. Beginning with Tax Year 2004, the Unified Credit amount for Estates will diverge from that of the Gift Tax Returns.

    2. $220,550 (for decedents dying in 2000 and 2001).

    3. $211,300 (for decedents dying in 1999).

    4. $202,050 (for decedents dying in 1998 (per Taxpayer Relief Act of 1997)).

    5. $192,800 (for decedents dying between 1987 and December 1997).

    6. Pre–1987 Unified Credit (see table below).

      Exception:

      There was NO unified credit amount prior to 197712.

  3. Issue the appropriate TPNC if there were any taxpayer errors in Fields 0308 and 0309.

  4. If 0308 is blank, enter the amount from Schedule B, Line 1, Column C. (Refer to the Table below for Unified Credit amounts for prior years.)

    Year in Which the Decedent Died or in Which A Gift Was Made   Unified Credit
    1977 30,000
    1978 34,000
    1979 38,000
    1980 42,500
    1981 47,000
    1982 62,800
    1983 73,300
    1984 96,300
    1985 121,800
    1986 155,800
    1987 through 1997 192,800
    1998 202,050
    1999 211,300
    2000 through 2001 220,550
    2002 through 2010 (Gift Tax Only) 345,800

    Note:

    The Unified Credit for Gift Tax returns will remain at $345,800 from 2002 through 2010. The Unified Credit charts will display higher Unified Credit amounts for Estate Tax Returns (Forms 706). Beginning with Tax Year 2004, the Unified Credit amount for Estates will diverge from that of the Gift Tax Returns. See IRM 3.12.263.14.4.10, Field 0309-Balance After Unified Credit Amount. There was no Unified Credit prior to 197712.

    1. If a taxpayer error in Field 0309 caused an underprint, send the appropriate TPNC.

    2. If the taxpayer has figured this field to be a negative amount, which will generate as a positive amount, delete the entry.

    3. If the taxpayer used the negative amount to help reduce the amount of generation-skipping tax shown in Field 0316, issue TPNC 90. TPNC 90 should include the following language: "The Unified Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax."

3.12.263.15.35.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 41—"We found an error in the computation of the Unified Credit amount. The Unified Credit amount you reported was $n,nnn,nnn,nnn,nnn.nn. The amount we recomputed is $n,nnn,nnn,nnn,nnn.nn."

    2. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    3. Any previously-assigned TPNCs.

3.12.263.15.36  (01-01-2009)
Error Code 464

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    0309 Balance After Unified Credit
    >>>> Balance After Unified Credit (Computer)
    0310 Adjustment to Unified Credit (20%)
    0311 Balance After Unified Adjustment
    >>>> Balance After Unified Adjustment (Computer)

3.12.263.15.36.1  (01-01-2009)
Invalid Condition

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.36.2  (01-01-2009)
Correction Procedures

  1. Correct all coding and transcription errors.

  2. Field 0311 is transcribed from Line 11, Page 1, Part 2. It is computed by subtracting Field 0310 from Field 0309. If 0310 is blank, enter the amount from 0309 in 0311.

    1. If the taxpayer has figured this field to a negative amount, which will generate as a positive amount, delete the entry.

    2. If the taxpayer used the negative amount to help reduce the amount of generation-skipping tax shown in Field 0316, the TPNC 90 should include the following language: "The Unified Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax."

  3. If a taxpayer error in Field 0311 caused an underprint, send TPNC 90. Suggested language: "We found an error in the computation of the Balance After Unified Adjustment amount (Line 11)."

3.12.263.15.36.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 41—"We found an error in the computation of the Unified Credit amount. The Unified Credit amount you reported was $n,nnn,nnn,nnn,nnn.nn. The amount we recomputed is $n,nnn,nnn,nnn,nnn.nn."

    2. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    3. Any previously-assigned TPNCs.

3.12.263.15.37  (01-01-2009)
Error Code 468

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    01TXP Tax Period
    0306 Balance of Gift Tax
    >>>> Balance of Gift Tax (Computer)
    0310 Adjustment to Unified Credit (20%)
    0311 Balance After Unified Adjustment
    >>>> Balance After Unified Adjustment (Computer)
    0312 Unified Credit
    >>>> Unified Credit (Computer)

3.12.263.15.37.1  (01-01-2009)
Invalid Condition

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.37.2  (01-01-2009)
Correction Procedure

  1. Correct all coding and transcription errors.

  2. Field 0312 is transcribed from Line 12, Page 1, Part 2. It is computed by using the smaller of Field 0306 or Field 0311.

  3. If Field 0312 underprints with a larger amount than the taxpayer's entry:

    1. Check, Schedule B, Column D for amounts present for gifts made after September 8, 1976, that the taxpayer used to compute an adjustment to Unified Credit.

    2. If the amount from Schedule B, Column D has not been entered in Field 0310, bring the amount forward and enter on Line 10 and in Field 0310.

    3. If entered correctly and the error causes an underprint, send the appropriate TPNC.

    4. If the taxpayer computed Field 0312 correctly, but is using a larger amount of Unified Credit than needed to offset the tax, bring up the underprint in Field 0312. Do not send Letter 3024, Math Error Explained (IMF/BMF).

    5. If the taxpayer has figured this field to a negative amount, which will generate as a positive amount, delete the entry. If the taxpayer used the negative amount to help reduce the amount of generation-skipping tax (on Line 16 of the form), send TPNC 90. Include the following language: "The Unified Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax."

3.12.263.15.37.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 41—"We found an error in the computation of the Unified Credit amount. The Unified Credit amount you reported was $n,nnn,nnn,nnn,nnn.nn. The amount we recomputed is $n,nnn,nnn,nnn,nnn.nn."

    2. TPNC 69—"We found an error in the computation on Page 1, Part 2, Line 6, Balance."

    3. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    4. Any previously-assigned TPNCs.

3.12.263.15.38  (01-01-2009)
Error Code 472

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    0312 Unified Credit
    >>>> Unified Credit (Computer)
    0313 Foreign Gift Tax
    0314 Total Credits
    >>>> Total Credits (Computer)

3.12.263.15.38.1  (01-01-2009)
Invalid Condition

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.38.2  (01-01-2009)
Correction Procedure

  1. Correct all coding and transcription errors.

  2. Field 0314 is transcribed from Line 14, Page 1, Part 2. It is computed by adding Field 0312 and Field 0313.

  3. If entered correctly and the error does not affect Total Taxes (Field 0317), bring up the underprint.

  4. If a taxpayer error in Field 0314 caused an underprint, send the appropriate TPNC (see below).

3.12.263.15.38.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 41 - "We found an error in the computation of the Unified Credit amount. The Unified Credit amount you reported was $n,nnn,nnn,nnn,nnn.nn. The amount we recomputed is $n,nnn,nnn,nnn,nnn.nn."

    2. TPNC 75 - "We found an error in the computation of Page 1, Part 2, Line 14, Total Credits ."

    3. TPNC 90 - More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    4. Any previously-assigned TPNCs.

3.12.263.15.39  (01-01-2009)
Error Code 476

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    0306 Balance of Gift Tax
    >>>> Balance of Gift Tax (Computer)
    0314 Total Credits
    >>>> Total Credits (Computer)
    0315 Total Gift Tax
    >>>> Total Gift Tax (Computer)

3.12.263.15.39.1  (01-01-2009)
Invalid Condition

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.39.2  (01-01-2009)
Correction Procedures

  1. Correct all coding and transcription errors.

  2. Field 0315 is transcribed from Line 15, Page 1, Part 2, and is computed by subtracting Field 0314 from Field 0306.

  3. If a taxpayer error in Field 0315 caused an underprint, send TPNC 90, stating: "We found an error in the computation of your total gift tax for Line 15, Page 1, Part 2 ( Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return)."

    1. If the taxpayer has figured this field to a negative amount, which will generate as a positive amount, delete the entry.

    2. If the taxpayer used the negative amount to help reduce the amount of generation-skipping tax on Line 16 of the return, the TPNC 90 should include the following language: "The Unified Credit cannot be used to offset generation-skipping tax. Therefore, we have adjusted your total tax."

  4. If the underprint in Field 0315 is due to the deletion of Field 0313 (Line 13 amount on return), TPNC 90 should include the following language: "Since a foreign tax credit is not allowed on taxes paid to the country for which you claimed a credit, we have disallowed the credit."

3.12.263.15.39.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 10—"We found an error in the computation of your taxable gifts for the current period."

    2. TPNC 69—"We found an error in the computation on Page 1, Part 2, Line 6, Balance."

    3. TPNC 75—"We found an error in the computation of Page 1, Part 2, Line 14, Total Credits ."

    4. TPNC 83—"We found an error in the computation of your total tax amount."

    5. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    6. Any previously-assigned TPNCs.

3.12.263.15.40  (01-01-2009)
Error Code 480

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    01TXP Tax Period
    01CCC Computer Condition Code
    0315 Total Gift Tax
    >>>> Total Gift Tax (Computer)
    0316 Generation-Skipping Transfer Tax
    0317 Total Taxes
    >>>> Total Taxes (Computer)
    03MCT Manually Corrected Tax (ERS Input Only)

3.12.263.15.40.1  (01-01-2009)
Invalid Condition

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.40.2  (01-01-2009)
Correction Procedures

  1. Correct all coding and transcription errors.

  2. This field is transcribed from Line 17, Page 1, Part 2. It is computed by adding Field 0315 and Field 0316.

  3. If either of these lines underprinted, manually verify Line 17 (Field 0317) and enter the correct amount in Field 03MCT.

  4. If the taxpayer's entry(s) on either of these lines caused an underprint, send the appropriate TPNC.

    Caution:

    Be certain the correct Tax Period is entered in Field 01TXP before sending any TPNC.

    1. If a taxpayer error in Field 0317 caused an underprint, send TPNC 83.

      Note:

      If taxpayer has entered an amount for tax and there are no entries in Fields 0308 through 0312 (Lines 8 through 12 on the return), correspond, if necessary, for more information. SSPND with Action Code 211.

    2. If no reply, contact Compliance Services, Estate and Gift Tax Campus Operation for further instructions (SSPND with AC 370).

  5. If the taxpayer's figure in Field 0317 is incorrect, manually compute Lines 15, 16, and 17 enter the result in Field 03MCT (Manually Corrected Tax). This field is entered by Error Correction on the dotted portion of Line 17, Page 1, Part 2. (It is present when the tax period is 197612 and prior, or whenever a manual computation is required by the examiner.)

  6. If tax is zero, enter $.01 in Field 03MCT.

  7. If the taxpayer brought forward the incorrect amount and Field 0317 (Total Taxes) underprints, send TPNC 48.

  8. Special to Tax Year 1977 - The Unified Credit amount against Gift Tax after December 31, 1976, and prior to July 1, 1977, was $6,000. The Unified Credit amount against Gift Tax after June 30, 1977, and before January 1, 1978, was $30,000. Returns for this tax year may require a manually-verified tax computation, using the following lines only:

    1. Line 1, Page 1 (Enter the amount from Schedule A).

    2. Line 2, Page 1 (Enter the amount from Schedule B).

    3. Line 3, Page 1 (Total (Item (Line) 1 plus Item (Line) 2).

    4. Line 4, Page 1 (Tax computed on Line 3).

    5. Line 5, Page 1 (Tax computed on Line 2).

    6. Line 6, Page 1 (Balance (Subtract Line 5 from Line 4)).

    7. Line 7, Page 1 (Credit for foreign gift taxes).

    8. Line 8 (or Line 17), "Total Tax" or "Tax Due" .

    9. Enter the result of the manually-corrected tax in Field 03MCT.

  9. Special to Tax Years prior to 1981 (Annual Exclusion Amount) - The annual exclusion amount for a gift prior was $3,000 prior to 198112. Returns for this tax year may require a manually-verified tax computation, using the following lines only:

    1. Lines 1 through 6, Page 1 (as shown in (9), above).

    2. Line 7, Page 1 (Enter the amount of Unified Credit from Table B).

    3. Line 8, Page 1 (Enter the amount of Unified Credit against gift tax allowable for all prior quarters (periods)).

    4. Line 9, Page 1 (Balance (subtract amount on Line 8 from amount on Line 7)).

    5. Line 10, Page 1 (Enter 20% of the amount allowed as specific exemption after September 8, 1976).

    6. Line 11, Page 1 (Balance (Subtract Line 10 from Line 9)).

    7. Line 12, Page 1 (Unified Credit (enter the smaller of amount on Line 6 or amount on Line 11)).

    8. Line 13, Page 1 (Credit for foreign gift taxes).

    9. Line 14, Total (add amounts on Line 12 and Line 13).

    10. Line 15, "Total Tax" or "Tax Due" .

    11. Enter the result of the manually-corrected tax in Field 03MCT.

  10. Special to Tax Year 1988 (Annual Exclusion (and Foreign Spouse Exclusion) Amounts) - The annual exclusion amount was raised to $10,000 for gifts given subsequent to 198112. This exclusion amount continued at $10,000 for the period up through July 13, 1988. Beginning with gifts made after July 13, 1988, to spouses who are NOT U.S. citizens, the Annual Exclusion Amount for non-citizen spouses was increased (from $10,000) to $100,000. Returns for either of these tax years (particularly for 1988) will require a manually-verified tax computation. Enter the result of the manually-corrected tax in Field 03MCT.

3.12.263.15.40.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 10—"We found an error in the computation of your taxable gifts for the current period."

    2. TPNC 48—"We found an error in the generation-skipping transfer tax computation."

    3. TPNC 83—"We found an error in the computation of your total tax amount."

    4. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    5. Any previously-assigned TPNCs.

3.12.263.15.41  (01-01-2009)
Error Code 484

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    0317 Total Taxes
    >>>> Total Taxes (Computer)
    0318 Prior Payments Amount
    03B/R Balance Due/Overpayment
    >>>> Balance Due/Overpayment (Computer)

3.12.263.15.41.1  (01-01-2009)
Invalid Condition

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.263.15.41.2  (01-01-2009)
Correction Procedures

  1. Correct all coding and transcription errors.

  2. This field is transcribed from Line 19 or 20, Page 1, Part 2. It is computed by subtracting Field 0318 from Field 0317. The computer will underprint with a positive amount for a balance due and a negative amount for an overpayment.

  3. Any penalty or interest included by the taxpayer in Field 03B/R should be subtracted from the amount on Line 19 or 20 and the difference entered in Field 03B/R. Also, "X" Line 19 or 20 and edit the difference to the left of the "X" .

  4. If any of the taxpayer's entry(s) has caused a math error, send TPNC 54.

3.12.263.15.41.3  (01-01-2009)
Applicable Taxpayer Notice Codes (TPNCs)

  1. The following Taxpayer Notice Codes (TPNCs) are valid for this error code.

    1. TPNC 10—"We found an error in the computation of your taxable gifts for the current period."

    2. TPNC 48—"We found an error in the generation-skipping transfer tax computation."

    3. TPNC 54—"We found an error in the computation of the balance due or overpayment amount."

    4. TPNC 76—"The amount claimed as prepaid tax with the extension of time to file on Page 1, Part 2, Line 18 was incorrect."

    5. TPNC 83—"We found an error in the computation of your total tax amount."

    6. TPNC 90—More than three math errors were made on the return or there is no math error code that meets the error condition on the return. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    7. Any previously-assigned TPNCs.

3.12.263.15.42  (01-01-2009)
Error Code 488

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    01CCC Computer Condition Code
    01RFC Refund Code
    03B/R Balance Due/Overpayment
    >>>> Balance Due/Overpayment (Computer)

3.12.263.15.42.1  (01-01-2009)
Invalid Condition

  1. The refund is $1,000,000 or more, and the Refund Code of "1" is not present in Field 01RFC.

  2. The Refund Code is "1" , and the Computer Condition Code (Field 01CCC) does not contain an "O" .

  3. CCC "O" is present, but the Refund Code is not "1" .

3.12.263.15.42.2  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

  2. Verify that the refund is for $1,000,000 or more and that a manual refund has been prepared. (The Refund Code is entered by ERS whenever Error Code 488 appears.) If the refund has been issued, then enter a "1" in Field 01RFC and enter CCC "O" in Field 01CCC. If the refund has not been issued, SSPND using Action Code 341.

    Note:

    See IRM 3.12.263.3.2.2 to ensure the refund is issued timely and for TAS Manual Refund procedures.

    If Then
    The condition is not met Delete invalid entries.
    A manual refund has been issued and CCC "O" is present Enter a "1" in Field 01RFC even if the refund is less than $1,000,000.
    The refund has not been issued 1. SSPND using Action Code 341.
    2. Attach routing slip, and note "Manual Refund" .

  3. Error Code 488 will occur if the Field 03B/R (Balance Due/Overpayment) underprint is a refund of $1 million or more and the Refund Code (Field 01RFC) does not equal "1" . To correct:

    1. Check for coding and transcription errors.

    2. Enter a "1" in Field 01RFC.

    3. Enter CCC "O" (Module Freeze) in Field 01CCC (Computer Condition Code).

      Note:

      CCC "O" must be present in Field 01CCC when a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (IGR), is attached to the return.

3.12.263.15.43  (01-01-2009)
Error Code 492

  1. Fields Displayed:

    Field Designator on Form 709, U.S. Gift (and Generation-Skipping Transfer) Tax Return Field Name
    NC Notice Code
    RMIT> Remittance Amount
    0317 Total Tax
    >>>> Total Tax (Computer)

3.12.263.15.43.1  (01-01-2009)
Invalid Condition

  1. The Total Tax (Computer) is zero, but a remittance amount is present.

3.12.263.15.43.2  (01-01-2009)
Correction Procedures

  1. Correct any coding and transcription errors.

  2. This error will occur on a non-G coded return when the Total Tax Computer is zero or blank, or if the Total Tax (Field 0317) is zero or blank. Total Tax (Computer) is the computer-generated underprint for Line 17, Page 1, Part 2. It is computed by adding Field 0315 (Total Gift Tax) and Field 0316 (Generation-Skipping Transfer Tax) (EXCEPT FOR 197612 and prior).

  3. The RMIT> field cannot be changed. It is blank for non-remittance returns and remittance returns processed through the RPS system. It is a non-correctable field.

  4. If the remittance was transcribed incorrectly, or if the Total Tax (Computer) is zero, take the following actions in the table below.

    If
    And     		Then
    Return is a true nontaxable (i.e., taxpayer shows none, not liable, or tax is zero due to a math error) and no other non-math errors are involved Taxpayer indicates on return or attachments that excess remittance with return or overpayment be applied to another account 1. Enter CCC "X" in Field 01CCC and continue processing the return.
    There is a math error   Issue TPNC 90.
    The is no math error.   1. Suspend the record with Action Code 342 for transfer of payment off the record.
    2. Indicate excess remittance on routing slip. If non-tax status is due to a math error, note on routing slip, "Zero tax due to math error. Refund if no other tax due."
    3. Route to Accounts Management.

  5. If the RMIT was transcribed correctly, CCC "G" is not present, and the Total Tax (Field 0317) was zero ("0" ) or blank, enter $.01 (one cent) in the Total Tax (Field 0317) to clear Error Code 492.

3.12.263.15.43.3  (01-01-2009)
Applicable Taxpayer Notice Code (TPNC)

  1. Only Taxpayer Notice Code (TPNC) 90 is valid for this error code. TPNC 90 is a blank notice which contains up to ten (10) blank lines which are available on the notice for whatever statement is needed. Use TPNC 90 when more than three math errors were made on the return or there is no math error code that meets the error condition on the return.

3.12.263.15.44  (01-01-2009)
Error Code 999 (EOY)

  1. Fields Displayed:

    Field Designator on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return Field Name
    01TXP Tax Period

3.12.263.15.44.1  (01-01-2009)
Invalid Condition

  1. Error Code 999 will generate for all returns that are in error status at the end of the processing year.

3.12.263.15.44.2  (01-01-2009)
Correction Procedures

  1. Since the system will re-validate the record and will set validity and error codes based on the current program, the only correction procedure for Error Code 999 is for the tax examiner to transmit.

    Reminder:

    FYI (For Your Information) ONLY -Fields such as the following would be impacted by a tax period check: (1) Gifts Attributable to Spouse (Field 02A); (2) Balance After Spouse Amount (Field 02B); (3) Gifts Included From Spouse (Field 02C); and (4) Total Gifts Amounts (Field 02D), all of which will be invalid if the Tax Periods for these fields are greater than 200212.

3.12.263.15.45  (01-01-2009)
Section 529(c)(2)(B) Returns (Qualified State Tuition Programs) - Forms 709

  1. Taxpayers are allowed a contribution to a qualified state tuition plan on behalf of a designated beneficiary. If the taxpayer’s total contributions to a qualified state tuition program on behalf of any individual beneficiary exceed $12,000, then for purposes of the annual exclusion the taxpayer may elect under Section 529(c)(2)(B) to treat up to $60,000 of his/her total contributions as having been made ratably over a 5-year period beginning in 2007. (These are considered gifts of a present interest.)

    1. The taxpayer is required to report in 2007 the entire amount of the contribution in excess of $60,000.

    2. The taxpayer makes the election by checking the box on Line B at the top of Schedule A. The election must be made for the calendar year in which the contribution is made.

    3. The taxpayer must also attach an explanation that includes the following: (1) the total amount contributed per individual beneficiary; (2) the amount for which the election is being made; and, (3) the name of the individual for whom the contribution was made.

    4. If the taxpayer makes this election, he/she is to report only 1/5 (20%) of his/her total contribution(s) (up to $60,000) on the Tax Year 2007 Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. He/she must then report an additional 20% of the total in each of the succeeding 4 years, unless they are NOT required to file Form 709 other than to report that year’s portion of the election.

      Note:

      IMPORTANT : If the total gift is over $60,000, then, in the first year, the taxpayer must report everything over $60,000.

  2. If the taxpayer(s) prepared the return(s) correctly, Schedule A should list the gift amount per year (should be 20% of the total 5-year contribution) and should not exceed the annual exclusion amount per donee ($12,000 per year). The total value of the gift (over the 5 year period) for each donee should appear on the attachments.

    Note:

    If the taxpayers elected gift-splitting for the contributions, apply the gift-splitting rules before applying these rules. In this case, both spouses must make the Section 529(c)(2)(B) election on their respective returns.)

3.12.263.15.45.1  (01-01-2009)
Correction Procedures

  1. If the taxpayer checked Box B (Schedule A) electing to file under Section 529(c)(2)(B) and the amounts of the gifts on Schedule A exceed $12,000 per donee (per year), perform the following steps:

    1. Step 1 : Search the return or attachments to determine whether the taxpayer reported the entire amount of the contribution in excess of $60,000 for that tax year (i.e., in this case, tax year 2007).

    2. Step 2 : If the taxpayer provided the 5-year total of the gift(s) on an attached statement, compare the amount of the gift(s) against the information provided under Part 1 (Schedule A) to ensure the taxpayer properly listed 20% of the gift (per donee per year), not to exceed the $12,000 annual exclusion amount for each donee.

    3. Step 3 : If the taxpayer completed Schedule A with 20% of the 5-year total of the gift per donee, continue processing the return.

  2. If no attachment was provided, but Box B was checked, and the taxpayer attempted to provide the entire amount of the gift under Part 1 (Schedule A), perform the following steps:

    1. Step 1 : Determine the number of donees (i.e., individual beneficiaries) for the gift in question.

    2. Step 2 : Divide the total value of the gift by the number of donees.

    3. Step 3 : Enter 20% of the total of the individual gift in column E (to the right of the individual donee's names (column B), if present.

    4. Step 4 : Continue processing the return.

  3. Example: The taxpayer's total 2007 contributions to a qualified state tuition program on behalf of six individual beneficiary gifts equaled $240,000 for a five-year period. Using the information provided in this example, perform the following steps:

    1. Compare the amounts under Part 1 (Schedule A) , if present, against the information on the attachment(s).

      1. If the taxpayer listed 20% of the gift per donee, continue processing return.

      2. If the taxpayer did not list 20% of the individual gift per donee:

      1. Divide the $240,000 by 6 (donees), at $40,000 per gift. To be eligible for a non-taxable return, the annual exclusion amount per gift (i.e., the individual beneficiary's exclusion) cannot exceed $12,000 per donee per year.

      2. Enter 20% of the gift, or $8,000 per donee, in column E (Schedule A) to the right of the donee's name (column B), if present. If there was an amount greater than $12,000 in that column, place an "X" to the left of that amount, and enter the 20% figure to the left of the "X" . Do this for each of the donees to whom this gift is being given.

      3. Continue processing the return.

        Reminder:

        If, in any of the four years following the election, the taxpayer is not required to file a Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, other than to report that year's portion of the election, he/she does not need to file or otherwise report that year's portion. In cases involving this example of Section 529(c)(2)(B) returns, the taxpayer filing in tax year 2007 need only file a return for the 5-year gift only during the first year (2007). He/she does not have to file a Form 709 the following years (2007 through 2010) unless there are other gifts given for those years.

3.12.263.15.45.2  (01-01-2009)
ETIP (Estate Tax Inclusion Period) Returns

  1. If property that is transferred by gift in a GST direct-skip would have been includible in the donor’s estate if the donor had died immediately after the transfer (other than by reason of the donor having died within 3 years of making the gift), the direct skip will be treated as having been made at the end of the "estate tax inclusion period" (ETIP), rather than at the time it was actually made. (Section 2642(f) contains details for taxpayers electing to file in this manner.)

    1. The taxpayer is instructed to report the gift portion of such a transfer in Schedule A, Part 1, at the time of the actual transfer.

    2. The taxpayer is instructed to report the GST portion in Schedule A, Part 2, but only at the close of the ETIP.

  2. The taxpayer is to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, only to report those transfers where the ETIP closed due to something other than the donor’s death. If the ETIP closed as the result of the donor’s death, the taxpayer is instructed to report the transfer on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

  3. If the taxpayer is filing this Form 709 solely to report transfer subject to an ETIP, he/she is instructed to complete the form as he/she normally would with the following exceptions:

    1. Write "ETIP" at the top of Page 1.

    2. Complete only lines 1 through 4, 6, 8, and 9 of Part I, General Information.

    3. Complete Schedule A, Part 2, as explained in the instructions for that schedule on Page 8 (Form 709 instructions).

    4. Complete Column B of Schedule C, Part 1, as explained in the instructions for that schedule on Page 10 (Form 709 instructions).

    5. If the taxpayer is computing the Generation-Skipping Tax (Schedule C), he/she is instructed to complete only Lines 14 and 15 of Schedule A, Part 3. (Taxpayer is also instructed to list here direct skips that are subject only to the GST tax as the result of the termination of any "estate tax inclusion period" .)

  4. If absolutely necessary, correspond for any missing information needed to process the return. Otherwise, continue to process the return with the information provided.

3.12.263.15.45.3  (01-01-2009)
GST Exemption Allocation

  1. Every donor is allowed a lifetime GST exemption. The donor can apply this exemption to transfers made during the donor's life on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. The taxpayer is required to attach a statement of explanation or to notate on the return "Allocation of Generation Skipping Exemption" .

  2. On the Form 709, the taxpayer first reports all their gifts during the year. In a separate part of the return, the taxpayer reports the amount of GST exemption that the they want to allocate to the their taxable gifts during the period. The allocation of GST exemption only affects the GST tax and not the gift tax. The amount allocated does not affect the amount of taxable gifts. The allocation will affect the amount of GST tax due with respect to a gift that is subject to GST tax.

3.12.263.16  (01-01-2009)
Processing Form 709-A

  1. This section contains procedures for converting Form 709-A, United States Short Form Gift Tax Return, to Form 709. Form 709-A was obsoleted effective October 2003.

3.12.263.16.1  (01-01-2009)
Section 01—Form 709–A

  1. Section 01 field designators, line numbers, field lengths, titles, and location are listed below:

    Field Designator on Form 709-A, United States Short Form Gift Tax Return Field
    Length

    Title

    Location
    RMIT> 11 N/A  
    01NC 4 Name Control Line 2
    NC>>>> 4 Name Control
    Underprint     		(generated)
    01SSN 9 (Donor's) Social Security Number Line 3
    01SSS 9 Spouses Social Security Number Line 10
    01TXP 6 Tax Period Top of Return
    01CCC 10 Computer Condition Codes Upper Left Margin
    01RCD 8 Received Date Center of Return
    01PIC 1 N/A  
    01CAF 1 CAF Indicator Bottom Left of Preparer's Line
    01PFC 1 Prior Filing Code Right of Yes/No box (Line 8)
    01CSI 1 Gift Consent Indicator Code Line 9
    01CZC 1 Citizenship Code Line 7
    01CRD 8 Correspondence Received Date Left Margin of 709–A by Consenting Spouse's Signature Line
    01DTH 1 N/A  
    01DOD 6 N/A  
    01TND 2 N/A  
    01FSI 1 N/A  
    01RFC 6 N/A  
    TPNC 2 N/A  

  2. Due Date— See IRM 3.12.263.14.1, Due Dates (Form 709).

3.12.263.16.1.1  (01-01-2009)
Conversion of Form 709–A to Form 709

  1. All Forms 709-A, United States Short Form Gift Tax Returns, received will be converted according to the instructions below:

    1. Obtain a blank Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

    2. Verify and transfer all entity information.

    3. Verify and transfer all editing.

    4. Verify and transfer all dollar amounts. Transfer the amount from Form 709–A, Column D to Form 709, Schedule A, Part 3, Line 1. Calculate the applicable number of donees and exclusion amount. If the calculation on Schedule A shows taxable gifts (Form 709, Schedule A, Line 15), transfer to Page 1, Part 2, Line 1. Edit as necessary.

    5. Follow local submission processing center procedures for processing of the converted return.

Exhibit 3.12.263-1  (01-01-2009)
Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return

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Exhibit 3.12.263-1 - Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return

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Exhibit 3.12.263-1 (Cont. 1) - Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Page 2

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Exhibit 3.12.263-1 (Cont. 2) - Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Page 3

Exhibit 3.12.263-2  (01-01-2009)
Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (Prior Year Return)

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Exhibit 3.12.263-2 - Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (Prior Year Return)

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Exhibit 3.12.263-2 (Cont. 1) - Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (Prior Year Return), Page 2

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Exhibit 3.12.263-2 (Cont. 2) - Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (Prior Year Return), Page 3

Exhibit 3.12.263-3  (01-01-2009)
Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Estate of nonresident not a citizen of the United States)

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Exhibit 3.12.263-3 - Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Estate of nonresident not a citizen of the United States)

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Exhibit 3.12.263-3 (Cont. 1) - Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Estate of nonresident not a citizen of the United States), Page 2

Exhibit 3.12.263-4  (01-01-2009)
Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Estate of nonresident not a citizen of the United States) (Prior Year Return)

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Exhibit 3.12.263-4 - Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Estate of nonresident not a citizen of the United States) (Prior Year Return)

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Exhibit 3.12.263-4 (Cont. 1) - Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Estate of nonresident not a citizen of the United States) (Prior Year Return), Page 2

Exhibit 3.12.263-5  (01-01-2009)
Table A - Unified Rate Schedule (Forms 706 and 709)

Use the following tables for the year in which the decedent died (Estate tax) or for the year in which the gift was made (Gift tax).

Table A - Unified Rate Schedule (2006) - Forms 706 and 709

Column (A)
Taxable amount equal to or more than 		Column (B)
Taxable amount less than 		Column (C)
Tax on amount in Column (A) 		Column (D)
Rate of tax on excess over amount in Column (A)
Percent
$ 0 $10,000 $0 18
10,000 20,000 1,800 20
20,000 40,000 3,800 22
40,000 60,000 8,200 24
60,000 80,000 13,000 26
80,000 100,000 18,200 28
100,000 150,000 23,800 30
150,000 250,000 38,800 32
250,000 500,000 70,800 34
500,000 750,000 155,800 37
750,000 1,000,000 248,300 39
1,000,000 1,250,000 345,800 41
1,250,000 1,500,000 448,300 43
1,500,000 2,000,000 555,800 45
2,000,000 -------------- 780,800 46
2005
2,000,000 -------------- 780,800 47%
2004
2,000,000 -------------- 780,800 48%
2003
2,000,000 -------------- 780,800 49%
2002
2,000,000 2,500,000 780,800 49%
2,500,000 -------------- 1,025,800 50%
1998-2001
2,000,000 2,500,000 780,800 49%
2,500,000 3,000,000 1,025,800 53%
3,000,000 10,000,000 1,290,800 55%
10,000,000 17,184,000 5,140,800 60%
17,184,000 --------------- 9,451,200 55%
1990-1997
2,000,000 2,500,000 780,800 49%
2,500,000 3,000,000 1,025,800 53%
3,000,000 10,000,000 1,290,800 55%
10,000,000 21,040,000 5,140,800 60%
21,040,000 --------------- 11,764,800 55%
1984-1989
2,000,000 2,500,000 780,800 49%
2,500,000 3,000,000 1,025,800 53%
3,000,000 --------------- 1,290,800 55%
1983
2,000,000 2,500,000 780,800 49%
2,500,000 3,000,000 1,025,800 53%
3,000,000 3,500,000 1,290,800 57%
3,500,000 -------------- 1,575,800 60%
1982
2,000,000 2,500,000 780,800 49%
2,500,000 3,000,000 1,025,800 53%
3,000,000 3,500,000 1,290,800 57%
3,500,000 4,000,000 1,575,800 61%
4,000,000 -------------- 1,880,800 65%
1977-1981
2,000,000 2,500,000 780,800 49%
2,500,000 3,000,000 1,025,800 53%
3,000,000 3,500,000 1,290,800 57%
3,500,000 4,000,000 1,575,800 61%
4,000,000 4,500,000 1,880,800 65%
4,500,000 5,000,000 2,205,800 69%
5,000,000 -------------- 2,550,800 70%

Table A - Unified Rate Schedule (1976 and Prior) - Form 706 (Estate Tax Only)

Column (A)
Taxable amount equal to or more than 		Column (B)
Taxable amount less than 		Column (C)
Tax on amount in Column (A) 		Column (D)
Rate of tax on excess over amount in Column (A)
Percent
$0 $5,000 $0 3
5,000 10,000 150 7
10,000 20,000 500 11
20,000 30,000 1,600 14
30,000 40,000 3,000 18
40,000 50,000 4,800 22
50,000 60,000 7,000 25
60,000 100,000 9,500 28
100,000 250,000 20,700 30
250,000 500,000 65,700 32
500,000 750,000 145,700 35
750,000 1,000,000 233,200 37
1,000,000 1,250,000 325,700 39
1,250,000 1,500,000 423,200 42
1,500,000 2,000,000 528,200 45
2,000,000 2,500,000 753,200 49
2,500,000 3,000,000 998,200 53
3,000,000 3,500,000 1,263,200 56
3,500,000 4,000,000 1,543,200 59
4,000,000 5,000,000 1,838,200 63
5,000,000 6,000,000 2,468,200 67
6,000,000 7,000,000 3,138,200 70
7,000,000 8,000,000 3,838,200 73
8,000,000 10,000,000 4,568,200 76
10,000,000 ---------------- 6,088,200 77

Table A - Unified Rate Schedule (1976 and Prior) - Form 709 (Gift Tax Only)

Column A
Amount of Taxable Gifts Equaling 		Column B
Amount of Taxable Gifts Not Exceeding 		Tax on Amount in Column (A) Rate of Tax on Excess Over Amount in Column (A)
Percent
--------------- $5,000 ---------------- 2 1/4
$5,000 10,000 $112.50 5 1/4
10,000 20,000 375 8 1/4
20,000 30,000 1,200 10 1/2
30,000 40,000 2,250 13 1/2
40,000 50,000 3,600 16 1/2
50,000 60,000 5,250 18 3/4
60,000 100,000 7,125 21
100,000 250,000 15,525 22 1/2
250,000 500,000 49,275 24
500,000 750,000 109,275 26 1/4
750,000 1,000,000 174,900 27 3/4
1,000,000 1,250,000 244,275 29 1/4
1,250,000 1,500,000 317,400 31 1/2
1,500,000 2,000,000 396,150 33 3/4
2,000,000 2,500,000 564,900 36 3/4
2,500,000 3,000,000 748,650 39 3/4
3,000,000 3,500,000 947,400 42
3,500,000 4,000,000 1,157,400 44 1/4
4,000,000 5,000,000 1,378,650 47 1/4
5,000,000 6,000,000 1,851,150 50 1/4
6,000,000 7,000,000 2,353,650 52 1/2
7,000,000 8,000,000 2,878,650 54 3/4
8,000,000 10,000,000 3,426,150 57
10,000,000 ---------------- 4,566,150 57 3/4

Exhibit 3.12.263-6  (01-01-2009)
Table B for Computing State Death Tax Credit (1977-2004)

Column 1 - Adjusted taxable estate equal to or more than Column 2 - Adjusted taxable estate less than Column 3 - Credit on amount in Column 1 Column 4 - Rates of credit on excess over amount in Column 1 Percent
$0 40,000 0 None
40,000 90,000 0 0.8
90,000 140,000 400 1.6
140,000 240,000 1,200 2.4
240,000 440,000 3,600 3.2
440,000 640,000 10,000 4.0
640,000 840,000 18,000 4.8
840,000 1,040,000 27,600 5.6
1,040,000 1,540,000 38,800 6.4
1,540,000 2,040,000 70,800 7.2
2,040,000 2,540,000 106,800 8.0
2,540,000 3,040,000 146,800 8.8
3,040,000 3,540,000 190,800 9.6
3,540,000 4,040,000 238,800 10.4
4,040,000 5,040,000 290,800 11.2
5,040,000 6,040,000 402,800 12.0
6,040,000 7,040,000 522,800 12.8
7,040,000 8,040,000 650,800 13.6
8,040,000 9,040,000 786,800 14.4
9,040,000 10,040,000 930,800 15.2
10,040,000 ---------------- 1,082,800 16.0

Note: For Tax Year 2002, 75% of the amount on Table B; for Tax Year 2003, 50% of the amount on Table B; and for Tax Year 2004, 25% of the amount on Table B. The State Death Tax Credit was repealed for estates of decedents dying after December 31, 2004. In place of the State Death Tax Credit, estates will be allowed a deduction for any state death taxes.

Exhibit 3.12.263-7  (01-01-2009)
Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return

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Exhibit 3.12.263-7 - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return

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Exhibit 3.12.263-7 (Cont. 1) - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, Page 2

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Exhibit 3.12.263-7 (Cont. 2) - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, Page 3

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Exhibit 3.12.263-7 (Cont. 3) - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, Page 4

Exhibit 3.12.263-8  (01-01-2009)
Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return- Prior Year Return

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Exhibit 3.12.263-8 - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (Prior Year Return)

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Exhibit 3.12.263-8 (Cont. 1) - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (Prior Year Return), Page 2

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Exhibit 3.12.263-8 (Cont. 2) - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (Prior Year Return), Page 3

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Exhibit 3.12.263-8 (Cont. 3) - Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (Prior Year Return), Page 4

Exhibit 3.12.263-9  (01-01-2009)
U.S. Possessions ZIP Codes

City ZIP Code City ZIP Code
American Samoa (AS) Federated States of Micronesia (FM)
Faga'itua 96799 Chuuk 96942
Leone 96799 Kosrae 96944
Olosega Manua' 96799 Pohnpei 96941
Pago Pago 96799 Yap 96943
Marshall Islands (MH) Palau (PW)
Ebeye 96970 Koror 96940
Majuro 96960 Palau 96940
Northern Mariana Islands (MP) Virgin Islands (VI)
Capitol Hill 96950 Charlotte Amalie 00802
Rota 96951 Christiansted 00820
Saipan 96950 Cruz Bay 00830
Tinian 96952 Downtown 00840
Guam (GU) Frederiksted 00840
Agana 96910 Kingshill 00850
Inarajan 96917 Saint Croix 00820
Merizo 96916 Saint John 00830
Tamuning 96931 Saint Thomas 00805
Umatac 96915 Sunny Isle 00850
Yona 96915 Veterans Annex 00820
Puerto Rico (PR)
Adjuntas 00601 Laplata 00786
Aquada 00602 Lares 00669
Aquadilla 00603 Las Marias 00670
Agnes Buenas 00703 Las Piedras 00771
Aguirre 00704 Levittown 00949
Aibonito 00705 Loiza 00772
Anasco 00610 Loiza Street Station 00936
Angeles 00611 Loquillo 00773
Arecibo 00612 Manati 00674
Arroyo 00714 Maricao 00606
Bajadero 00616 Maunabo 00707
Barceloneta 00617 Mayaquez 00680
Barraquitas 00794 Mercedita 00715
Barrio Obrero Station 00935 Minillas Center 00936
Bayamon 00956 Moca 00676
Boqueron 00622 Morovis 00687
Cabo Rojo 00623 Naguabo 00718
Caguas 00725 Narajito 00719
Camuy 00627 Orocovis 00720
Canovanas 00729 Palmer 00721
Caparra Heights 00920 Patillas 00723
Carolina 00982 Penuelas 00624
Catano 00962 Ponce 00731
Cayey 00736 Puerta de Tierra 00936
Ceiba 00735 Puerta Real 00740
Cerro Gordon 00754 Punta Santiago 00741
Ciales 00638 Quebradillas 00678
Cidra 00739 Ramey 00603
Coamo 00769 Rincon 00677
Comerio 00782 Rio Blanco 00744
Condado 00907 Rio Grande 00721
Corozal 00783 Rio Piedras 00927
Coto Laurel 00780 Rosario 00636
Culebra 00775 Sabana Grande 00637
Dorado 00646 Sabana Hoyos 00688
Ensenada 00647 Sabana Seca 00952
Esperanza 00765 Saint Just 00978
Fajardo 00738 Salinas 00751
Fernandez Juncos 00936 San Antonio 00690
Florida 00650 San Francisco 00927
Fort Buchanan 00934 San German 00683
Garrachales 00652 San Juan 00936
Guanica 00653 San Lorenzo 00754
Guayama 00784 San Sebastian 00685
Guayanilla 00656 Santa Isabel 00757
Guaynabo 00965 Sanrurce 00936
Gurabo 00778 Toa Alta 00953
Hatillo 00659 Toa Boa 00949
Hato Rey 00936 Trujillo Alto 00976
Harmingueros 00660 University 00936
Humacao 00791 Utuado 00641
Isabela 00662 Vega Alta 00692
Jayuya 00664 Vega Baja (box 1-9049) 00694
Juana Diaz 00795 Vieques 00765
Juncos 00777 Villalba 00766
La Cumbre 00926 Yabucoa 00767
Lajas 00667 Yauco 00698

Exhibit 3.12.263-10  (01-01-2009)
Foreign Country Codes

Foreign Country Country Code
Abu Dubai AE
Afghanistan AF
Akrotiri AX
Aland Island XI
Albania AL
Algeria AG
Andorra AN
Angola AO
Anguilla AV
Antarctic Lands FS
Antarctica AY
Antigua AC
Antigua & Barbuda AC
Argentina AR
Armenia AM
Aruba AA
Ascension Island XA
Ashmore & Cartier Islands AT
Australia AS
Austria AU
Azerbaijan AJ
Azores XZ
Bahamas BF
Bahrain BA
Baker Island FQ
Balearic Islands SP
Bangladesh BG
Barbados BB
Barbuda AC
Bassas da India BS
Belarus BO
Belgium BE
Belize BH
Benin (Dahomey) BN
Bermuda BD
Bhutan BT
Bolivia BL
Bonaire NT
Bosnia & Herzegovina BK
Botswana BC
Bouvet Island BV
Brazil BR
Brazzaville (Capital of Republic of Congo) CF
British Indian Ocean Territory IO
British Virgin Islands VI
Brunei BX
Bulgaria BU
Burkina Faso UV
Burma BM
Burundi BY
Caicos Islands TK
Cambodia CB
Cameroon CM
Canada CA
Canary Islands XY
Cape Verde CV
Cartier Island AT
Cayman Islands CJ
Central African Republic CT
Chad CD
Channel Islands XC
Chile CI
China, People's Republic of (Including Inner Mongolia, Tibet & Manchuria CH
Christmas Island KT
Clipperton Islands IP
Cocos (Keeling) Islands CK
Columbia CO
Comoros CN
Congo (Brazzaville) CF
Congo (Kinshasa), Dem Rep of the CG
Cook Islands CW
Coral Sea Islands Territory CR
Corsica FR
Costa Rica CS
Cote d'Ivoire (Ivory Coast) IV
Croatia HR
Cuba CU
Curacao NT
Cyprus CY
Czech Republic EZ
Dem. People's Rep. of Korea (North) KN
Dem. Rep. of Congo (Kinshasa) CG
Dem. Rep. of Timor-Leste TT
Denmark DA
Dhekelia DX
Djibouti DJ
Dominica DO
Dominican Republic DR
Dubai AE
East Timor TT
Ecuador EC
Egypt EG
El Salvador ES
Eleuthera Island BF
England XE
Equatorial Guinea EK
Eritrea ER
Estonia EN
Ethiopia ET
Europa Island EU
Falkland Islands (Islas Malvinas) FK
Faroe Islands FO
Fiji FJ
Finland FI
France FR
French Guiana FG
French Polynesia FP
French Southern & Antarctic Lands FS
Futuna WF
Gabon GB
Gambia GA
Gaza Strip GZ
Georgia GG
Germany GM
Ghana GH
Gibraltar GI
Glorioso Islands GO
Great Britain (United Kingdom) UK
Greece GR
Greenland GL
Grenada GJ
Grenadines VC
Guadeloupe GP
Guatemala GT
Guernsey GK
Guinea GV
Guinea-Bissau PU
Guyana GY
Haiti HA
Heard Island & McDonald Island HM
Holy See VT
Honduras HO
Hong Kong HK
Howland Island HQ
Hungary HU
Iceland IC
India IN
Indonesia (Including Bali, Belitung, Flores, Java, Moluccas & Sumatra) ID
Iran IR
Iraq IZ
Ireland EI
Isle of Man IM
Israel IS
Italy IT
Jamaica JM
Jan Mayen JN
Japan JA
Jarvis Island DQ
Jersey JE
Johnston Atoll JQ
Jordan JO
Juan de Nova Island JU
Kazakhstan KZ
Kenya KE
Kingman Reef KQ
Kiribati KR
Korea (North) KN
Korea (South) KS
Kosovo KV
Kurile Islands RS
Kuwait KU
Kyrgyzstan KG
Laos LA
Latvia LG
Lebanon LE
Lesotho LT
Liberia LI
Libya LY
Liechtenstein LS
Lithuania LH
Luxembourg LU
Macau MC
Macedonia MK
Madagascar MA
Malawi MI
Malaysia MY
Maldives MV
Mali ML
Malta MT
Martinique MB
Mauritania MR
Mauritus MP
Mayotte MF
McDonald Island HM
Mexico MX
Midway Islands MQ
Miquelon SB
Moldova MD
Monaco MN
Mongolia MG
Montenegro MJ
Montserrat MH
Morocco MO
Mozambique MZ
Myanmar XM
Namibia WA
Nauru NR
Navassa Island BQ
Nepal NP
Netherlands NL
Netherlands Antilles NT
Nevis SC
New Caledonia NC
New Zealand NZ
Nicaragua NU
Niger NG
Nigeria NI
Niue NE
Norfolk Island NF
North Korea KN
Northern Grenadines VC
Northern Ireland UK
Norway NO
Oman MU
Pakistan PK
Palau PS
Palmyra Atoll LQ
Panama PM
Papua New Guinea PP
Paracel Islands PF
Paraguay PA
Peru PE
Philippines RP
Pitcairn Islands PC
Poland PL
Portugal PO
Principe TP
Qatar QA
Redonda VI
Republic of Korea (South) KS
Republic of Kosovo KV
Republic of Singapore SN
Reunion RE
Romania RO
Russia RS
Rwanda RW
Ryukyu Islands JA
S Georgia and S Sandwich Islands SX
Samoa WS
San Marino SM
Sao Tome and Principe TP
Sarawak MY
Saudi Arabia SA
Scotland XS
Senegal SG
Serbia RB
Seychelles SE
Sierra Leone SL
Singapore SN
Slovak Republic XR
Slovakia LO
Slovenia SI
Solomon Islands BP
Somalia SO
South Africa SF
South Georgia Island & South Sandwich Island SX
South Korea KS
South Sandwich Island SX
Spain SP
Spratly Islands PG
Sri Lanka CE
St. Barthelemy TB
St. Christopher SC
St. Helena SH
St. Kitts & Nevis SC
St. Lucia ST
St. Martin RN
St. Miquelon SB
St. Pierre SB
St. Pierre & Miquelon SB
St. Vincent & Grenadines VC
Sudan SU
Suriname NS
Svalbard SV
Swaziland WZ
Sweden SW
Switzerland SZ
Syria SY
Tahiti (French Polynesia) FP
Taiwan TW
Tajikistan TI
Tanzania TZ
Thailand TH
The Bahamas BF
The Gambia GA
The Netherlands NL
Timor, East TT
Timor-Leste TT
Togo TO
Tokelau TL
Tonga TN
Tortola VI
Trinidad and Tobago TD
Tristan Da Cunha XT
Tromelin Island TE
Tunisia TS
Turkey TU
Turkmenistan TX
Turks & Caicos Islands TK
Tuvalu TV
Uganda UG
Ukraine UP
United Arab Emirates AE
United Kingdom UK
Uruguay UY
Uzbekistan UZ
Vanuatu NH
Vatican City VT
Venezuela VE
Vietnam VM
Virgin Islands, British VI
Wake Island WQ
Wales XW
Wallis and Futuna WF
West Bank WE
Western Sahara WI
Western Samoa WS
Windward Island VC
Yemen YM
Yugoslavia YI
Zaire CG
Zambia ZA
Zimbabwe ZI

Exhibit 3.12.263-11  (01-01-2009)
Province, State and Territory Abbreviations

Australia State Abbreviation
Australian Capital Territory ACT
New South Wales NSW
Northern Territory NT
Queensland QLD
South Australia SA
Tasmania TAS
Victoria VIC
Western Australia WA
Brazil State Abbreviation
Acre AC
Alagoas AL
Amapa AP
Amazonas AM
Bahia BA
Ceara CE
Distrito Federal DF
Esperito Santo ES
Goias GO
Maranhao MA
Mato Grosso MT
Mato Grosso do Sul MS
Minas Gerais MG
Parana PR
Paraiba PB
Para PA
Pernambuco PE
Piaui PI
Rio Grande do Norte RN
Rio Grande do Sul RS
Rio de Janeiro RJ
Rondonia RO
Roraima RR
Santa Catarina SC
Sergipe SE
Sao Paulo SP
Tocantins TO
Canada Province/Territory Abbreviation
Alberta AB
British Columbia BC
Manitoba MB
New Brunswick NB
Newfoundland and Labrador NL
Northwest Territories NT
Nova Scotia NS
Nunavut NU
Ontario ON
Prince Edward Island PE
Quebec QC
Saskatchewan SK
Yukon YT
Cuba Provincias Abbreviation
Camaguey CG
Ciego de Avila CA
Cienfuegos CF
Ciudad di La Habana CH
Gramma (Bayamo) GR
Guantanamo GT
Holguin HO
La Habana HA
Matazas MT
Municipio Especial Isla de la Juventud IJ
Pinar del Rio PR
Sancti Spiritus SS
Santiago de Cuba SC
(Victoria de) Las Tunas LT
Villa Clara VC
Italy Provincia Abbreviation
Agrigento AG
Alessandria AL
Ancona AN
Aosta/Aoste AO
Arezzo AR
Ascoli Piceno AP
Asti AT
Bari BA
Belluna BL
Beneveto BN
Bergamo BG
Biella BI
Bologna BO
BolozanoBolzen BZ
Brescia BS
Brindisi BR
Cagliari CA
Caltanisetta CL
Campobasso CB
Caserta CE
Catania CT
Catanzaro CZ
Chieti CH
Como CO
Cosenza CS
Cremona CZ
Crotone KR
Cuneo CN
Enna EN
Ferrara FE
Firenze FI
Foggia FG
Forli FO
Frosinone FR
Genova GE
Gorizia GO
Grosseto GR
Imperia IM
Isernia IS
L'Aquila AQ
La Spezia SP
Latina LT
Lecce LE
Livorno LI
Lodi LO
Lucca LU
Macerata MC
Mantova MN
Massa-Carrara MS
Matera MT
Messina ME
Milano MI
Modena MO
Napoli NA
Novara NO
Nuoro NU
Oristano OR
Padova PD
Palermo PA
Parma PR
Pavia PV
Perugia PG
Pesaro-Urbino PS
Pescara PE
Piacenza PC
Pisa PI
Pistoia PT
Pordenone PN
Potenza PZ
Prato PO
Ragusa RG
Pavenna RA
Peggio de Calabria RC
Reggio nell'Emilia RE
Rieti RI
Rimini RN
Roma RM
Rovigo RO
Salerno SA
Sassari SS
Savona SV
Siena SI
Siracusa SR
Sondrio SO
Taranto TA
Teramo TE
Terni TR
Torino TO
Trapani TO
Trento TN
Treviso TV
Trieste TS
Udine UD
Varese VA
Venezia VE
Verbania VB
Vercelli VC
Verona VR
Vibo Valentia VV
Vincenza VI
Viterbo VT
Mexico State Abbreviation
Aguascalientes AGS
Baja California Norte BCN
Baja California Sur BCS
Campeche CAM
Chiapas CHIS
Chihuahua CHIH
Coahuila COAH
Colima COL
Distrito Federal DF
Durango DGO
Guanajuato GTO
Guerrero GRO
Hidalgo HGO
Jalisco JAL
Mexico MEX
Michoacan MICH
Morelos MOR
Nayarit NAY
Nuevo Leon NL
Oaxaca OAX
Puebla PUE
Queretaro QRO
Quintana ROO QROO
San Luis Potosi SLP
Sinaloa SIN
Sonora SON
Tabasco TAB
Tamaulipas TAMPS
Tlaxcala TLAX
Veracruz VER
Yucatan YUC
Zacatecas ZAC
The Netherlands Province Abbreviation
Drenthe DR
Flevoland FLD
Friesland FR
Gelderland GLD
Groningen GN
Lemburg LB
North Brabant NB
North Holland NH
Overijssel OV
South Holland ZH
Utrecht UT
Zeeland SLD

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