Instructions for Form 8971

Instructions for Form 8971

and Schedule A

(Rev. August 2025)

Information Regarding Beneficiaries Acquiring Property From a Decedent

(For use with Form 8971 (Rev. August 2025))

Section references are to the Internal Revenue Code unless

otherwise noted.

Future Developments

For the latest information about developments related to Form

8971 and its instructions, such as legislation enacted after they

were published, go to IRS.gov/Form8971.

General Instructions

Purpose of Form

Form 8971 and copies of Schedules A provide information to the

IRS about beneficiaries who acquired property from a decedent.

Schedule A provides basis information to beneficiaries who

acquire certain property from the decedent.

Furnish a Schedule A that reports property acquired by a

beneficiary to only that beneficiary. Do not furnish a copy

CAUTION of the Form 8971 to any beneficiary.

!

Basis information is needed by persons who acquire certain

property from a decedent in order to comply with the consistent

basis requirement of section 1014(f). If a beneficiary acquires

property subject to the consistent basis requirement, the

beneficiary cannot use a value higher than the value reported on

the Schedule A as the beneficiary's initial basis in the property.

(See section 1014(f) and section 1.1014-10 of the Regulations

for rules applicable to the consistent basis requirement.)

Who Must File

An executor of an estate or other person(s) required to file Form

706 or Form 706-NA (estate tax return) under IRC section

6018(a) or 6018(b) is required to file Form 8971 and furnish

Schedules A to certain beneficiaries. More than one person may

be required to file a Form 8971 for the same decedent's estate.

(See Executor defined for purposes of Form 8971, later.) Only an

executor of an estate for which a Form 706 or Form 706-NA is

filed after July 2015, whether or not that form is filed timely, is

required to file Form 8971. (See the Instructions for Form 706 or

Form 706-NA, for more information on the filing requirement for

those forms.)

Form 8971 isn’t required when:

• The gross estate plus adjusted taxable gifts and specific

exemption is less than the basic exclusion amount applicable in

the year of decedent's death;

• Estate tax-related forms other than Form 706 or Form 706-NA

(for example, Forms 706-QDT, 706-CE, and 706-GS(D)), are

filed; or

• The estate tax return is filed solely to make an allocation or

election respecting the generation-skipping transfer tax, solely to

elect portability of the deceased spousal exclusion amount

(DSUE), or solely as a protective filing to avoid a penalty or

satisfy a state law requirement.

Note. A complete Form 8971 includes a copy of each

Schedule A (if any) furnished or required to be furnished to a

beneficiary. Form 8971 and copies of Schedules A (if any) must

Jun 25, 2025

be filed with the IRS separate from any and all other tax returns

filed by the estate. The executor is required to timely file a Form

8971 even if no Schedules A are furnished or required to be

furnished when the Form 8971 is filed.

When To File

Due date. Form 8971 must be filed with the IRS and each

required Schedule A (see Required Schedules A, later) must be

furnished to only the beneficiary listed on that Schedule A, no

later than the earlier of:

• The date that is 30 days after the date on which Form 706 or

Form 706-NA is required to be filed (including extensions) with

the IRS; or

• The date that is 30 days after the date Form 706 or Form

706-NA is filed with the IRS.

(See Supplementing Forms 8971 and Schedules A, later, for

when an executor is required to file a supplement to Form 8971

and Schedules A and due dates for supplementing.)

Note. If the due date falls on a Saturday, Sunday, or legal

holiday, the executor may file on the next business day.

Where To File

File Form 8971 (including all Schedule(s) A) at the following

address.

Internal Revenue Service

Mail Stop 824G

7940 Kentucky Drive

Florence, KY 41042

Furnish a Schedule A to each individual beneficiary, each

trustee of a beneficiary trust, and each executor of a beneficiary

estate, required to receive a Schedule A:

• In person;

• By email;

• By U.S. mail to the beneficiary’s last known address; or

• By private delivery service to the beneficiary’s last known

address (see Private delivery services, later).

The executor must certify on Form 8971, Part II, column (d),

the date on which Schedule A was provided to each beneficiary

and should keep proof of mailing, proof of delivery,

acknowledgment of receipt, or other information relevant for the

estate's records. In cases where a trust or another estate is a

beneficiary and has multiple trustees or executors, providing

Schedule A to one trustee or executor is sufficient.

Private delivery services. Certain private delivery services

designated by the IRS may be used to meet the “timely mailing

as timely filing” rule for tax returns. These private delivery

services include only the following.

• UPS Next Day Air Early A.M., UPS Next Day Air, UPS Next

Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS

Worldwide Express Plus, and UPS Worldwide Express.

• DHL Express 9:00, DHL Express 10:30, DHL Express 12:00,

DHL Express Worldwide, DHL Express Envelope, DHL Import

Instructions for Form 8971 (Rev. 8-2025) Catalog Number 68440S

Department of the Treasury Internal Revenue Service www.irs.gov

Express 10:30, DHL Import Express 12:00, and DHL Import

Express Worldwide.

• FedEx First Overnight, FedEx Priority Overnight, FedEx

Standard Overnight, FedEx 2 Day, FedEx International Next

Flight Out, FedEx International Priority, FedEx International First,

and FedEx International Economy.

To check for any updates to the list of designated private

delivery services, go to IRS.gov/PDS.

If you are mailing Form 8971 through a private delivery

service, you may use the address shown above. The private

delivery service can tell you how to get written proof of the

mailing date.

Supplementing Forms 8971 and

Schedules A

An executor is required to file with the IRS a supplement to any

previously filed Form(s) 8971 and to furnish to each affected

beneficiary a Schedule A (or supplement) if:

• A beneficiary acquires property that is not excepted property

(see Excepted property defined, later) and that property is not

reported on a Schedule A previously furnished to the beneficiary

and attached to a Form 8971 previously filed with the IRS; or

• There is a change to the information required to be reported

on a Form 8971, including Schedules A (or supplements), that

causes the information as previously reported to be incorrect or

incomplete.

How to report a supplemental filing. On both the

supplemental Form 8971 and each supplemental Schedule A,

the “Supplemental Filing” box should be checked. Only

information that has changed should be reported.

Due date of supplement to report property acquired after

the due date of the Form 706 or Form 706-NA. If, after the

due date of the Form 706 or Form 706-NA (or the earlier filing of

Form 8971), a beneficiary acquires property subject to reporting

that is not excepted property (see Excepted property defined,

later) and the executor has not previously furnished the

beneficiary with a Schedule A correctly reporting that property,

the executor must furnish a Schedule A to that beneficiary with

regard to that acquired property on or before January 31 of the

year following the beneficiary's acquisition of that property. By

that same January 31, the executor must file with the IRS a

supplement to the Form 8971 and attach copies of all Schedules

A or supplements to Schedules A furnished or required to be

furnished on or before that January 31.

Due date to supplement to report a change to information.

If there is a change to the information required to be reported on

a Form 8971, including Schedules A (or supplements), that

causes the information as previously reported to be incorrect or

incomplete, the executor must file with the IRS a supplement to a

previously filed Form 8971 (or supplement thereto) and furnish

affected beneficiaries a Schedule A (or supplement thereto) to

report the change on or before 30 days after the date on which

information becomes available to the executor from which the

executor can conclude that a change to the information provided

on the Form 8971 or Schedule A (or any supplement thereto)

requires the Form 8971 or Schedule A to be supplemented.

For changes occurring as a result of supplementing the estate

tax return, the date on which the information becomes available

to the executor is deemed to be the filing date of the

supplemental information. Therefore, for changes occurring as a

result of supplementing the estate tax return, the due date of the

supplemental reporting is 30 days after the filing date of the

supplemental information. For changes occurring as a result of a

determination of final value (see Final value defined, later), the

date on which the information becomes available to the executor

is deemed to be the date a value becomes the final value.

2

Therefore, for changes occurring as a result of a determination of

final value, the due date of the supplemental reporting is 30 days

after the date a value becomes the final value. However, for

property that has not been acquired by a beneficiary on or before

the due date and for which the executor has not furnished a

Schedule A reporting the property, the due date to file a

supplement to the Form 8971 and furnish a Schedule A to report

a change to information may be delayed until January 31 of the

year following the beneficiary's acquisition of that property.

Examples of changes to information that require supplement. A non-exhaustive list of changes that require

supplemental reporting includes the following.

• Change in beneficiary information. The receipt, discovery,

or acquisition by the executor of information that changes the

beneficiary to whom property is to be distributed (pursuant to a

death, disclaimer, bankruptcy, or otherwise), or corrects or

completes other beneficiary information that was previously

reported.

• Change or addition of property subject to reporting. The

supplementing of an estate tax return to report the estate tax

value of property not previously reported on a Form 706 or Form

706-NA or supplement thereto. The inclusion of previously

unreported property in the decedent's gross estate pursuant to

an examination by the IRS or otherwise.

• Change in property to be acquired by beneficiary. When

an executor furnishes a Schedule A to a beneficiary prior to the

beneficiary's acquisition of property and the beneficiary

ultimately acquires property different from the property identified

on that Schedule A (for example, as the result of a like-kind

exchange under section 1031 or an involuntary conversion).

• Change in the identified value of property. The

supplementing of an estate tax return to report a corrected

estate tax value (see Estate tax value, later) of property that was

previously reported. A determination of the final value (see Final

value defined, later) of property for federal estate tax purposes

that differs from the value that was previously reported.

Duration of duty to supplement. An executor's duty to

supplement continues to apply until final value (see Final value

defined, later) is determined for all property subject to reporting

or, if later, until all property subject to reporting has been

acquired by a beneficiary.

Rounding Off to Whole Dollars

The value of property should be reported in U.S. dollars and

rounded to whole-dollar amounts. To round, drop amounts under

50 cents and increase amounts from 50 to 99 cents to the next

dollar. For example, $1.39 becomes $1 and $2.55 becomes $3.

If you add two or more amounts to figure an item's value, include

the cents when adding the amounts and round off only the total.

Penalties

Note. An executor may be subject to penalties for failure to file

and/or furnish correct Forms 8971 and Schedules A even if there

was no tax due on the estate tax return.

Failure to file correct Forms 8971 by the due date (section

6721). If an executor required to file Form 8971 fails to file with

the IRS a correct and complete Form 8971 (or supplement) by

the due date and doesn't show reasonable cause, a penalty may

be imposed. The penalty applies if there is a failure to file timely,

a failure to include all information required to be shown on the

form or schedules required to be attached, a failure to include

correct information on the form or schedules required to be

attached, or a failure to supplement Form 8971 timely. A

complete Form 8971 (or supplement) includes copies of all

Schedules A furnished or required to be furnished to

beneficiaries by the due date of the Form 8971.

Instructions for Form 8971 and Schedule A

Only one penalty will apply to each Form 8971 required to be

filed. The initial Form 8971 and each supplement to that Form

8971 is a separate filing.

The amount of the penalty depends on when the correct Form

8971 is filed and is subject to adjustment for inflation. For the

amount of the penalty (including a minimum penalty for

intentional disregard of the filing requirement), see IRS.gov/

Payments/Information-Return-Penalties.

Inconsequential error or omission on Form 8971. An

inconsequential error or omission isn't considered a failure to

include correct information. An inconsequential error or omission

doesn't prevent or hinder the IRS from processing the Form 8971

and the Schedules A required to be filed along with it. Errors and

omissions that are never inconsequential are those related to a

TIN, a beneficiary's surname, and the value of the asset the

beneficiary is receiving from the estate.

Note. A TIN is a Social Security Number (SSN), an Employer

Identification Number (EIN), an Individual Taxpayer Identification

Number (ITIN), or any other number used by the IRS in the

administration of tax laws. See Part II Beneficiary Information,

later, for information on obtaining the TIN of a beneficiary of the

estate.

Safe harbor exception for certain de minimis errors of

Form 8971. Generally, if the failure to include correct

information is an inadvertent failure to include the correct dollar

amount, the error is de minimis, and the Form 8971 (including all

Schedules A) is otherwise correct and was timely filed, the Form

8971 is treated as having been filed with the correct information.

An error in dollar amount on Form 8971 is de minimis if the

difference between any single incorrect amount and the correct

amount is not more than $100. This exception does not apply if

the incorrect dollar amount relates to an amount included on a

Schedule A and the beneficiary to whom the Schedule A was

furnished elects to have the exception for certain de minimis

errors on a Schedule A not apply to the Schedule A (see Safe

harbor exception for certain de minimis errors on Schedule A,

later).

Failure to furnish correct Schedules A to beneficiaries by

the due date (section 6722). If an executor required to file

Form 8971 fails to furnish to a beneficiary a correct and complete

Schedule A (or supplement) by the due date and doesn't show

reasonable cause, a penalty may be imposed. The penalty

applies if there is a failure to furnish the Schedule A timely, a

failure to include all information required to be shown on the

schedule, a failure to include correct information on the

schedule, or a failure to supplement Schedule A timely. The

penalty applies to each Schedule A and each supplement to that

Schedule A required to be furnished.

The amount of the penalty depends on when a correct

Schedule A is furnished and is subject to adjustment for inflation.

For the amount of the penalty (including the minimum penalty for

intentional disregard of the requirement to furnish a statement),

see IRS.gov/Payments/Information-Return-Penalties.

Inconsequential error or omission on Schedule A. An

inconsequential error or omission isn't considered a failure to

include correct information. An inconsequential error or omission

can't reasonably be expected to prevent or hinder the beneficiary

from timely receiving correct information and using the

information to report basis on the beneficiary's own return. Errors

and omissions that are never inconsequential are those related

to the value of the asset the beneficiary is receiving from the

estate and those related to a significant item in a beneficiary's

address.

Safe harbor exception for certain de minimis errors on

Schedule A. Generally, if the failure to include correct

information is an inadvertent failure to include the correct dollar

Instructions for Form 8971 and Schedule A

amount, the error is de minimis, and the Schedule A is otherwise

correct and was timely furnished, the Schedule A is treated as

having been furnished with the correct information. An error in

dollar amount on Schedule A is de minimis if the difference

between any single incorrect amount and the correct amount is

not more than $100. This exception does not apply if the

beneficiary to whom the Schedule A was furnished elects to

have the exception not apply to the Schedule A. For information

on making an election to have the safe harbor exception not

apply, see section 301.6722-1(d)(3) of the Procedure and

Administration Regulations (TD 9984, De Minimis Error Safe

Harbor Exceptions to Penalties for Failure To File Correct

Information Returns or Furnish Correct Payee Statements

published in the Federal Register (88 FR 88696) on December

19, 2023).

Reasonable cause exception to the penalties. The penalties

for failing to file correct Form 8971 (or supplement) and

Schedules A with the IRS and for failing to furnish correct

Schedules A (or supplements) to beneficiaries won't apply to any

failure that is shown to be due to reasonable cause and not to

willful neglect. In general, it must be shown that the failure was

due to an event beyond the executor's control or due to

significant mitigating factors. It must also be shown that the

executor acted in a responsible manner, both before and after

the failure occurred, and took steps to avoid the failure.

Penalties for Inconsistent Filing

Beneficiaries who report basis in property that is inconsistent

with the amount on the Schedule A may be liable for a 20%

accuracy-related penalty under section 6662. Beneficiaries who

report a basis in property acquired from a decedent that is 200%

or more of the correct amount may be liable for a 40% penalty for

a gross valuation misstatement under section 6662(h), instead of

the 20% penalty.

Obtaining Forms and Publications To

File or Use

You can access the IRS website 24 hours a day, 7 days a week,

at IRS.gov to:

• Download forms, instructions, and publications;

• Order IRS products;

• Research tax questions;

• Search publications by topic or keyword; and

• Sign up to receive local and national tax news by email.

Defined Terms and Specific

Instructions

Executor defined for purposes of Form 8971. For purposes

of this Form 8971, the term “executor” includes the executor,

personal representative, or administrator of the decedent's

estate. If none of these is appointed, qualified, and acting in the

United States, every person in actual or constructive possession

of any property of the decedent is considered an executor. Thus,

more than one person may be required to file a Form 8971 for

the same decedent's estate. If no executor is appointed by a

court or if one executor is unable to file a complete estate tax

return (for example, if the executor has insufficient information

about property in the decedent's gross estate that is not in the

possession of that executor), each person required to file a Form

706 or Form 706-NA is required to file Form 8971 and Schedules

A, but only with regard to the property reported or required to be

reported by that person.

Beneficiaries required to be identified on Form 8971. Form

8971 must identify each beneficiary (including an executor who

is a beneficiary) to whom the executor is required to furnish a

Schedule A and must identify each beneficiary to whom the

3

executor has furnished an optional Schedule A on or before the

date on which the Form 8971 is filed. (See Required Schedules

A and Optional Schedules A, later.) If the executor is required to

furnish a Schedule A to a beneficiary and the executor is unable

to locate the beneficiary by the date required for filing the Form

8971 with the IRS, then the executor must identify the

beneficiary on the Form 8971 and attach a statement to the

Form 8971 detailing the executor's efforts to locate the

beneficiary. The executor is not required to identify any

beneficiary on Form 8971 if no Schedules A are furnished or

required to be furnished when the Form 8971 is filed.

Required Schedules A. An executor is required to furnish a

Schedule A to a beneficiary (including an executor who is a

beneficiary) that acquired property subject to reporting if:

• The beneficiary acquired the property on or before the due

date of the estate tax return (or, if earlier, the date on which the

estate tax return is filed with the IRS), (see When property is

acquired, later) and

• Any property acquired by the beneficiary is not excepted

property (see Excepted property defined, later).

The Schedule A must report each property subject to

reporting (that is not excepted property) acquired by the

beneficiary on or before the due date of the estate tax return (or,

if earlier, the date on which the estate tax return is filed with the

IRS) (see Property subject to reporting and Excepted property

defined, later).

(See Supplementing Forms 8971 and Schedules A, earlier,

for when a Schedule A (or a supplement to Schedule A) is

required to be furnished to a beneficiary and attached to a

supplement to Form 8971 filed with the IRS.)

Optional Schedules A. If an executor is not required to report a

property on a required Schedule A because a beneficiary has

not yet acquired the property, the executor may nevertheless

report the property on a Schedule A furnished to a beneficiary

that the executor has reason to believe will acquire the property.

Such a Schedule A is referred to as an optional Schedule A. The

optional Schedule A can include property reported on a required

Schedule A or is reported on a separate Schedule A.

When property is acquired. A beneficiary acquires property

when, under local law, title vests in the beneficiary or when the

beneficiary otherwise has sufficient control over or connection

with the property that the beneficiary is able to take action

related to the property for which basis is relevant for federal

income tax purposes (for example, to sell or depreciate the

property). In many cases, a beneficiary's acquisition of property

occurs upon an executor's or trustee's distribution of the

property. For property passing by contract or by operation of law,

the beneficiary's acquisition of that property generally occurs

automatically upon the death of the decedent.

Property subject to reporting. Except for excepted property

subject to only limited reporting, the property subject to reporting

is included property and any other property the basis of which is

determined, in whole or in part, by reference to the basis of the

included property (for example, property acquired in a like-kind

exchange or an involuntary conversion). For this purpose,

included property is property the value of which is included in the

value of the decedent's gross estate. Generally, included

property refers to property whose value is reported on an estate

tax return, but it also refers to property whose value otherwise is

included in the total value of the gross estate (for example,

during examination by the IRS). Thus, included property includes

property that qualified, in whole or in part, for an estate tax

marital deduction or for an estate tax charitable deduction. It

further includes property included in the decedent's gross estate

that is distributed to a surviving spouse in satisfaction of that

surviving spouse's interest in community property not included in

the gross estate that the executor has distributed to a

4

non-spouse pursuant to state law properly applied. However,

included property does not include property whose value is not

reported on an estate tax return and whose value is not

otherwise included in the value of the decedent's gross estate,

such as the property of a deceased nonresident noncitizen that

is not subject to United States estate tax and the surviving

spouse's share of community property.

Executor must file a Form 8971 when all property is excepted property. The executor is required to timely file Form 8971

with the IRS even if all property subject to reporting is excepted

property. However, the executor is not required to provide

information for excepted property on a Schedule A.

Excepted property defined. Excepted property includes:

(i) United States dollars (as defined later);

(ii) United States dollar-denominated demand deposits;

(iii) Certificates of deposit denominated in United States

dollars;

(iv) Cash collateral denominated in United States dollars

held by a third party to secure a liability (such as a deposit of

purchase money or a security deposit);

(v) Shares of a registered investment company priced in

United States dollars that is a money market fund under Rule

2a-7 under the Investment Company Act of 1940 (17 CFR

270.2a);

(vi) Life insurance proceeds on the life of the decedent

payable in a lump sum in United States dollars;

(vii) Federal, state, and local tax refunds and other refunds

payable in United States dollars;

(viii) Notes that are forgiven in full by the decedent upon the

decedent's death, whether or not denominated in United

States dollars;

(ix) Household and personal effects for which an appraisal is

not required under section 20.2031-6(b) of the Estate Tax

Regulations;

(x) Property that, prior to distribution from the estate or the

decedent's revocable trust, is completely sold, exchanged,

or otherwise disposed of in one or more transactions that are

recognition events for federal income tax purposes (whether

or not resulting in a gain or loss, and whether or not any gain

is capital or ordinary). Such property includes, but is not

limited to: (a) Property distributed in satisfaction of a

pecuniary bequest on which the estate recognizes any gain

or loss pursuant to section 1.661(a)-2(f) of the Income Tax

Regulations; (b) Property for which an election under section

643(e)(3) has been made for the estate to recognize any

gain or loss; (c) Interests in a business entity that are

redeemed for United States dollars prior to being distributed

to the beneficiary; (d) Property disposed of in a transaction

described in section 267(a) and (b)(13); and (e) Property

subject to the mark to market accounting method at the time

of distribution from the estate or from the decedent's

revocable trust;

(xi) Other property having an initial basis that is not in any

way determined with regard to or derived from the property's

fair market value for federal estate tax purposes. For

purposes of this section, such property includes but is not

limited to: (a) Annuity contracts subject to section 72 and

amounts received as an annuity subject to section 72; (b) An

interest in property that consists entirely of the right to

receive an item of income in respect of a decedent as

defined in section 691; (c) Amounts received under

installment obligations arising from a transaction for which

the installment method for determining gain under section

453 applies; (d) Appreciated property described in section

1014(e) that is acquired by the decedent within 1 year of

death; (e) Stock of a passive foreign investment company

subject to section 1296(i), but only when the basis of such

stock is the adjusted basis in the hands of the decedent

Instructions for Form 8971 and Schedule A

immediately before the decedent's death; and (f) Interests in

and distributions from retirement plans and deferred

compensation plans, including individual retirement

arrangements as defined in section 408 and 408A, that are

expressed entirely in United States dollars;

(xii) Bonds to the extent that they are redeemed by the issuer

for United States dollars prior to being distributed to a

beneficiary so that any resulting gain or loss is recognized by

the estate;

(xiii) Property included in the gross estate of a beneficiary

who died before the due date of the Information Return; and

(xiv) Any other property that is identified as excepted

property in published guidance in the Federal Register or in

the Internal Revenue Bulletin (see Regulations section

601.601(d)(2)(ii)(b)).

United States dollars defined. United States dollars means

the official currency of the United States. This includes physical

United States bills and coins for which the value of each bill or

coin is equivalent to the face amount of that bill or coin. This

definition does not include other physical United States bills or

coins with numismatic value because these bills and coins

typically do not have a value equal to their face value.

Estate tax value. Until the final value of property is determined

for federal estate tax purposes, the estate tax value to be

reported on Schedule A is the value of the property reported on

the Form 706 or Form 706-NA or, when applicable, a

supplement to the Form 706 or Form 706-NA. Once the final

value of property is determined, the estate tax value to be

reported on Schedule A is the final value of the property.

Final value defined. For purposes of section 6035 reporting,

the final value of property is the value as finally determined for

application of the consistent basis rule of section 1014(f). That

value is:

(i) The value reported on an estate tax return filed with the

IRS once the period of limitations on assessment (see

section 6501) of estate tax has expired without that value

having been timely adjusted by the IRS; or

(ii) The value determined or specified by the IRS that differs

from the value reported on an estate tax return filed with the

IRS and the value specified by the IRS for other property

included in the gross estate, once the period of limitations on

assessment applicable to the estate tax has expired without

that value having been timely contested by the executor;

(iii) The value determined in a written agreement with the

IRS (whether entered in the course of the administrative

proceedings between the estate and the IRS or after the

commencement of litigation), once that written agreement

has been executed by both the executor and the IRS and is

binding on all parties (including, but not limited to, the

executor, the IRS, and the beneficiaries); or

(iv) The value determined by a court for the purpose of

determining the estate tax liability of the estate, once the

court's determination no longer can be appealed to any

court.

Line Instructions

Complete Form 8971 in its entirety and attach a copy of each

required Schedule A (if any) and each optional Schedule A (if

any), completed in their entirety. Check the box on line A located

above Part I of the form if this Form 8971 supplements a

previously filed Form 8971. (See Supplementing Forms 8971

and Schedules A, earlier).

Note. The executor is required to timely file a Form 8971 even if

no Schedules A are furnished or required to be furnished when

the Form 8971 is filed. However, the executor is not required to

identify any beneficiary on Form 8971 if no Schedules A are

Instructions for Form 8971 and Schedule A

furnished or required to be furnished when the Form 8971 is

filed.

Part I—Decedent and Executor

Information

Lines 1 through 3. Enter the decedent's name, date of death,

and SSN. If the decedent didn't have an SSN, the executor

should obtain one for the decedent by filing Form SS-5,

Application for a Social Security Card. Form SS-5 is available at

any Social Security Administration (SSA) office, on the Internet

at SSA.gov/forms/ss-5.pdf, or by calling 800-772-1213.

Lines 4 and 5. Enter the executor’s name and phone number. If

there is more than one executor, enter the name of one executor

and see the instructions for line 8.

Line 6. Provide only the TIN of the executor listed on line 4 and

see the instructions for line 8.

Line 7a through 7h. Provide only the address of the executor

listed on line 4. Use Form 8822, Change of Address, to report a

change of the executor’s address. Also, see the instructions for

line 8.

Line 8. Check the box and attach a statement with the name,

address, telephone number, and TIN of each executor (if any)

other than the one named on line 4.

Line 9. If the executor made an election on the estate tax return

to use alternate valuation under section 2032, provide the

alternate valuation date.

Part II—Beneficiary Information

Lines 1 through 8. State the total number of beneficiaries to

the estate. State the number of beneficiaries that have acquired

only excepted property. State the number of beneficiaries that

are expected to acquire (but have not yet acquired) only

excepted property. Check the box if all estate property will be

sold before the estate is distributed.

Provide the information requested below for each beneficiary

required to be identified on this Form 8971 (or supplement). (See

Beneficiaries required to be identified on Form 8971, earlier. See

also, When property is acquired, earlier, and Excepted property

defined, earlier). Duplicate and use page 2 (Part

II—Continuation) if additional entries are needed. Do not

complete lines 7 and 8 on any duplicate page 2.

Column (a). Enter the name of each individual, trust, or other

estate (beneficiary) required to be identified on this Form 8971

(or supplement). Retain a copy of the Form 8971 (including all

attached Schedules A (if any)) for the estate's records.

Column (b). Enter the TIN of each beneficiary identified. If the

executor of the estate solicited a beneficiary's TIN in writing at

the last known address of the beneficiary and hasn't received it

by the due date of the Form 8971, enter “requested” and attach a

copy of the solicitation to Form 8971. A supplement to the Form

8971 and corresponding Schedule A must be filed with the IRS

once the TIN has been obtained.

If a beneficiary trust does not have at least one trustee and a

tax identification number by the due date of the Form 8971, enter

“trust not yet established” and attach a statement to the Form

8971 detailing efforts made by the executor (including copies of

any solicitations) to obtain the name of the trustee and tax

identification number. A supplement to the Form 8971 must be

filed with the IRS and a supplement to Schedule A must be

furnished to each trustee once the beneficiary trust is

established.

Note. Some foreign beneficiaries may not be required to provide

a TIN to the estate. If the foreign beneficiary isn’t required to

5

provide a TIN, enter “Not Required” in the TIN entry space and

attach a statement to the Form 8971 detailing the authority under

which the executor concludes that the beneficiary is not required

to provide a TIN.

Column (d). For each beneficiary, enter the date on which the

executor furnished Schedule A to the beneficiary.

Note. If the executor is required to furnish a Schedule A to a

beneficiary and the executor is unable to locate the beneficiary

by the date required for filing the Form 8971, identify the

beneficiary in column (a), enter the beneficiary's TIN, if known, in

column (b), enter the beneficiary's last known address in column

(c), enter “not furnished” in column (d), and attach a separate

page to the Form 8971 explaining any missing information and

detailing efforts made by the executor to locate the beneficiary

and obtain information.

Column (e). Add total estate tax value for each beneficiary.

Total amount from column (e) should match the totals from all

Schedules A, Part II, line 3, column (h).

Return preparer. Anyone who is paid to prepare the Form 8971

and/or any Schedule A must sign the form as a paid preparer

and give a copy of the completed Form 8971 and/or Schedules

A to the executor required to file Form 706 or Form 706-NA.

Permission to discuss the Form 8971 is limited to the information

reported on (or required to be reported on) the Form 8971 and

attached Schedules A and does not authorize the return

preparer to represent the estate before the IRS or to enter into

any agreements with the IRS regarding the Form 8971 and

attached Schedules A.

Note. A paid preparer may sign original or amended returns by

rubber stamp, mechanical device, or computer software

program.

Form(s) 2848 Power of Attorney. Completing Form 2848 may

authorize the person designated on that form to sign

agreements, consents, waivers, or other documents. Complete

and submit Form 2848, Power of Attorney and Declaration of

Representative, per its instructions, if the executor would like the

return preparer to represent the estate before the IRS with

respect to the Form 8971 and Schedules A. A copy of a filed

Form 2848 may be attached to the Form 8971; if attached, write

“copy” at the top of Form 2848. When completing a Form 2848

related to the Form 8971 and Schedules A, remember the

executor, not the estate, is the “taxpayer” to be listed in line 1,

and the TIN listed should also be the executor's TIN. Also, when

filling out line 3, enter “Civil Penalties” in the Description of the

Matter column, “Form 8971/Schedule A” in the Tax Form Number

column, and the decedent's date of death using the four-digit

year and two-digit month as “YYYYMM” in the Year(s) or

Period(s) column.

Note. A Form 2848 authorizing representation with respect to

Form 8971 is limited to the information reported on Form 8971

and Schedules A. It is a separate Form 2848 from a Form 2848

authorizing representation with respect to the Form 706 or Form

706-NA.

Signature and Verification

All executors shown on Form 8971 and listed on any attached

statement are responsible for the reporting requirements related

to Form 8971 and Schedules A. However, it is enough for only

one of the executors to sign Form 8971.

Form 8971 is signed under penalties of perjury and all

executors are responsible for the information included on Form

8971 and Schedules A as filed with the IRS and Schedules A

provided to beneficiaries. All executors are also liable for all

applicable penalties.

6

Schedule A—Beneficiary Information

Regarding Property Acquired From a

Decedent

You will need a copy of the Form 706 or Form 706-NA to

complete this schedule.

An executor required to file Form 8971 must complete and

furnish to beneficiaries all required Schedules A. (See Required

Schedules A, earlier.) The executor may also complete and

furnish to a beneficiary an optional Schedule A. (See Optional

Schedules A, earlier.) If an executor furnishes an optional

Schedule A to a beneficiary, the executor must identify that

beneficiary on Form 8971.

Check the first box on line 8 if this Schedule A supplements a

previously furnished Schedule A. (See Supplementing Forms

8971 and Schedules A, earlier). If this Schedule A supplements

a previously furnished Schedule A, check each of the remaining

boxes that applies to this Schedule A to indicate the reason for

the supplement.

Duplicate and use page 2 (Part II—Continuation) if additional

entries are needed. Attach a copy of each completed

Schedule A to a Form 8971 (or supplement) filed with the IRS.

Furnish each Schedule A only to the beneficiary named on that

Schedule A. Do not provide a copy of the Form 8971 to a

beneficiary. Do not complete lines 3 and 4 on any duplicate

page 2.

Column (a). Number each property for which the executor

furnished or is required to furnish a Schedule A. Continue this

numbering on page 2 of the Schedule A (if necessary).

Columns (b) through (d). Use the same description in

columns (b)–(d) that the executor used for the property on the

Form 706 or Form 706-NA. Also, include in columns (b) and (c)

the schedule and item number where the property was reported

on Form 706 or Form 706-NA, as applicable.

Type all information directly onto the Schedule A. Do not

attach schedules from Form 706. Listings of bulk assets may be

attached to Schedule A in lieu of a detailed description of each

item that has been acquired (or is expected to be acquired, in

the case of an optional Schedule A) by a beneficiary. The listing

should consist of a related property (for example, stocks held in

a single brokerage account) and only include information

relevant to basis reporting such as name/description of the

property, value, and valuation date. Do not attach property

appraisals to Schedule A.

For more information on details to be included by asset type

or schedule, see the Instructions for Form 706 or Form 706-NA.

Column (e). If the beneficiary acquired (or is expected to

acquire, in the case of an optional Schedule A) an undivided

interest (such as a tenancy-in-common or joint tenancy) or an

interest limited in time (such as a life estate or remainder

interest) or any other interest in the property that is less than

absolute ownership of 100% of the property reported on the

estate tax return, indicate the interest in the property the

beneficiary will acquire. For a community property interest,

report only the interest includible in the decedent's gross estate

(for example, 50% community property interest).

Column (f). An entry (Y or N) is required in this column for each

asset. Indicate “Y” only if estate tax was generated and the asset

contributed to the estate tax (for example, the asset wasn't

subject to a marital or charitable deduction).

Generally, any property that qualifies for a marital deduction

under section 2056 or 2056A or a charitable deduction under

section 2055 won't generate estate tax and “N” should be

indicated.

Instructions for Form 8971 and Schedule A

Column (g). Generally, the valuation date of property will be the

decedent’s date of death. If the estate elected to use an

alternate valuation date, enter the alternate valuation date. See

section 2032 for additional guidance.

Column (h). Enter the estate tax value of the property acquired

by the beneficiary. (See Estate tax value, earlier.) The value

reported in column (e) should be the fair market value as of the

decedent's date of death or any alternate valuation date used for

the estate tax return. Report the full fair market value of the

property, undiminished by debt, regardless of whether the estate

tax return reports the net value (fair market value less any debt)

of the property or separately reports the gross value of the

property and the outstanding debt.

Do not allocate uniform basis among beneficiaries that

acquire interests in the same property for different periods of

time. For each beneficiary that acquires an interest in property

limited by time, such as a life estate or remainder interest, list the

full value of the property as reported on the Form 706 or Form

706-NA. For example, if Beneficiary 1 acquires a life estate in

property and Beneficiary 2 acquires a remainder interest in the

same property, report the full value of the property as reported

on the Form 706 or Form 706-NA on the Schedule A furnished to

Beneficiary 1 and on the Schedule A furnished to Beneficiary 2.

For each beneficiary that acquires an undivided interest in

property, such as a tenant-in-common or joint tenant interest,

report the proportional value of the undivided interest acquired

by the beneficiary. For example, if an estate property valued on

the Form 706 at $400,000 is distributed to Beneficiary 1 and

Beneficiary 2 as equal tenants-in-common, list $200,000 on

each beneficiary's Schedule A. For a community property

interest, report only the value of the interest included in the

decedent's estate.

If (as a result of the resolution of a valuation issue or

otherwise), the value reported on a Schedule A previously filed

with the IRS or provided to a beneficiary changes, the executor

must file a supplement to Form 8971 with the IRS and furnish a

supplement Schedule A to each affected beneficiary. (See

Supplementing Forms 8971 and Schedules A and Due date to

supplement to report a change to information, earlier.)

Privacy Act and Paperwork Reduction Act Notice. We ask

for the information on this form to carry out the Internal Revenue

laws of the United States. You are required to give us the

information. We need it to ensure that you are complying with

these laws and to allow us to figure and collect the right amount

Instructions for Form 8971 and Schedule A

of tax. Sections 6035 and 6109, and the regulations, require you

to provide this information.

You aren’t required to provide the information requested on a

form that is subject to the Paperwork Reduction Act unless the

form displays a valid OMB control number. Books or records

relating to a form or its instructions must be retained as long as

their contents may become material in the administration of any

Internal Revenue law. Generally, tax returns and return

information are confidential, as required by section 6103.

However, section 6103 allows or requires the Internal Revenue

Service to disclose information from this form in certain

circumstances. For example, we may disclose information to the

Department of Justice for civil or criminal litigation, and to cities,

states, the District of Columbia, and U.S. commonwealths or

territories for use in administering their tax laws. We may also

disclose this information to other countries under a tax treaty, to

federal and state agencies to enforce federal non-tax criminal

laws, or to federal law enforcement and intelligence agencies to

combat terrorism. Failure to provide this information, or providing

false information, may subject you to penalties.

The time needed to complete and file this form and related

schedules will vary depending on individual circumstances. The

estimated average time is:

Recordkeeping . . . . . . . . . . . . . . . . . . . .

Learning about the law or the form . . . . . . . .

Preparing, copying, assembling, and sending the

form to the IRS . . . . . . . . . . . . . . . . . . . .

15 hr., 0 min.

3 hr., 0 min.

2 hr., 0 min.

Comments and suggestions. We welcome your comments

about this publication and suggestions for future editions.

You can send us comments through IRS.gov/

FormComments. Or, you can write to the Internal Revenue

Service, Tax Forms and Publications, 1111 Constitution Ave.

NW, IR-6526, Washington, DC 20224.

Although we can't respond individually to each comment

received, we do appreciate your feedback and will consider your

comments and suggestions as we revise our tax forms,

instructions, and publications. Don’t send tax questions, tax

returns, or payments to the above address. Instead, see Where

To File, earlier.

7