New Estate Tax Filing Requirements - Form 8971

The IRS has issued Form 8971, Information Regarding Beneficiaries Acquiring Property From a Decedent, along with related instructions. The introduction of Form 8971 significantly expanded the reporting duties of a personal representative or executor of a decedent’s estate, particularly with respect to basis consistency and beneficiary reporting.

Form 8971 is generally required to be filed when an estate is required to file a federal estate tax return on Form 706. Form 8971 must be filed separately from Form 706 and should not be attached to the estate tax return.

Under Internal Revenue Code Section 6035(a)(1), the executor of any estate required to file a federal estate tax return must provide a statement to both the IRS and each beneficiary acquiring an interest in property included in the decedent’s gross estate for federal estate tax purposes. The statement must identify the value of each interest as reported on the estate tax return and include any additional information required by the IRS.

Schedule A may be delivered electronically, including by email. The executor must certify on Form 8971 the date on which each Schedule A was provided and should retain proof of delivery for estate records.

The final regulations also address supplemental reporting when previously reported information changes or when additional reportable property is acquired by a beneficiary. Certain trustees may have reporting obligations when subsequently transferring or distributing inherited property. The timing and extent of these requirements depend on the circumstances of the estate or trust.

The Form 8971 filing requirement does not apply to estates that are not otherwise required to file an estate tax return because the gross estate plus adjusted taxable gifts is less than the applicable basic exclusion amount, even if a Form 706 is filed solely to allocate or elect generation-skipping transfer tax treatment.

Each beneficiary must receive a separate Schedule A. Schedule A provides information about reportable property acquired by a beneficiary, including the property’s estate tax value and identifying information relevant to basis consistency. Certain property is excluded from these reporting requirements.

Earlier IRS guidance left uncertainty as to whether Form 8971 was required when Form 706 was filed solely to elect estate tax portability under Code Section 2010(c)(5). Although certain regulations suggested that a portability return could be treated as a return required under Code Section 6018(a), subsequent IRS guidance clarified that estates filing Form 706 solely for portability purposes are not required to file Form 8971. In addition, the basis consistency rules under Code Section 1014(f) apply only to property that increases the estate’s federal estate tax liability after allowable credits, further supporting this position.

Form 8971 must generally be filed with the IRS, and each required Schedule A furnished to the appropriate beneficiary, no later than 30 days after the earlier of the date Form 706 or Form 706-NA is required to be filed (including extensions) or the date the estate tax return is actually filed.

Failure to comply with the reporting requirements of Internal Revenue Code Section 6035 may subject an executor to penalties under Sections 6721 and 6722 for failing to file correct information returns or furnish required beneficiary statements. Certain exceptions, including relief for reasonable cause, may apply under Section 6724.

For the IRS Form 706 PDF:

Form 706 PDF Download

For the IRS Form 8971 PDF:

Form 8971 PDF Download

2026 Update: Where to file Form 8971

Form 8971, including all required Schedules A, must be filed at the following address:

Internal Revenue Service
Stop 824G
7940 Kentucky Drive
Florence, KY 41042