New Final Form to Report Distributions to Estate Beneficiaries:

Posted by Kim Chen on February 15th, 2016

The IRS released final IRS Form #8971 (Information Regarding Beneficiaries Acquiring Property from a Decedent) and instructions, which is intended to satisfy the new basis consistency reporting requirement for estates. The basis consistency rule of IRC Secs. 6035(a) and 1014(f) applies when (1) the estate is required to file an estate tax return (IRS Form #706) after 7/31/15, and (2) the property increases the estate tax liability. The due date for the basis consistency requirement was delayed until 2/29/16 (Notice 2015-57). The new form cannot be filed with IRS Form #706; it is a separate filing requirement and should not be attached to the respective estate tax return. The final form is available at www.irs.gov/pub/irs-pdf/f8971.pdf .