@RobertB4444 The plan to report it, but the thing is they haven't got the money yet. Here's the timeline:
Year X: Decedent dies.
Year X+1: Two heirs pay inheritance tax.
Year X+2: One of the heirs files estate tax (although they haven't yet received any money because the inheritance matters is still going on in the foreign country via power of attorney).
From reading the answers on this thread, the inheritance tax needs to go on the estate tax return (form 706) but the heirs, like I said, didn't include it there because, as you said, they couldn't offset the money they hadn't yet got, so they wrote a 0 to everything (since the decedent no longer owned anything in the US. Should they file an amended estate return once they receive the money? Would it be OK to add there the inheritance money that they paid (year X+1) even if it was years before? If they are lucky, the inheritance transfer will complete during year X+3.
Thank you!
