A form the
IRS publishes giving the instructions for
Form 706-D, which one files to declare certain
taxable events related to the business interests of the
heir of an
estate. When one files a
Form 706 to declare an
estate tax liability, one may be able to
deduct for the portions of one's business owned by heirs. If the heir
sells this interest, or some other taxable event occurs, one must file Form 706-D to declare any additional tax liability brought about by the loss of this deduction.