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                                                                                                      Department of the Treasury
Instructions for Form 8971                                                                            Internal Revenue Service

and Schedule A
(January 2016)
Information Regarding Beneficiaries Acquiring Property From a Decedent

Section references are to the Internal         The filing requirement for Form 8971         Where To File
Revenue Code unless otherwise noted.           does not apply to an executor of an estate   File Form 8971 (including all Schedule(s) 
                                               that is not required to file an estate tax   A) at the following address.
Future Developments                            return because the gross estate plus 
For the latest information about               adjusted taxable gifts is less than the      Department of the Treasury
developments related to Form 8971 and          basic exclusion amount, but who does so      Internal Revenue Service Center
its instructions, such as legislation          for the sole purpose of making an            Mail Stop #824G
enacted after they were published, go to       allocation or election respecting the        Cincinnati, OH 45999
www.irs.gov/form8971.                          generation-skipping transfer tax. See the 
                                               Instructions for Form 706, Form 706-NA, 
                                               or Form 706-A for more information on the    A beneficiary can be provided 
General Instructions                           filing requirement for those forms.          Schedule A:
                                                                                            In person to an individual beneficiary, to 
                                                                                            the trustee(s) of a beneficiary trust, or to 
Purpose of Form                                When To File                                 the executor(s) of a beneficiary estate;
The Surface Transportation and Veterans        Form 8971 (including all attached            By email;
Health Care Choice Improvement Act of          Schedule(s) A) must be filed with the IRS    By U.S. mail to the beneficiary’s last 
2015 requires executors of an estate and       and only the Schedule A is to be provided    known address; or
other persons who are required to file         to the beneficiary listed on that            By private delivery service to the 
Form 706, United States Estate (and            Schedule A, no later than the earlier of:    beneficiary’s last known address (see 
Generation-Skipping Transfer) Tax              The date that is 30 days after the date      below).
Return; Form 706-NA, United States             on which Form 706, Form 706-NA, or 
Estate (and Generation-Skipping Transfer)      Form 706-A is required to be filed           The executor of the estate (or other 
Tax Return Estate of nonresident not a         (including extensions) with the IRS; or      person required to file) must certify on 
citizen of the United States; or Form          The date that is 30 days after the date      Form 8971, Part II, Column D, the date on 
706-A, United States Additional Estate         Form 706, Form 706-NA, or Form 706-A is      which Schedule A was provided to each 
Tax Return; to report the final estate tax     filed with the IRS.                          beneficiary and should keep proof of 
value of property distributed or to be                                                      mailing, proof of delivery, 
distributed from the estate, if the estate tax If the first Form 706, Form 706-NA, or       acknowledgment of receipt, or other 
return is filed after July 2015. Form 8971,    Form 706-A is filed both after the form’s    information relevant for the estate’s 
along with a copy of every Schedule A, is      due date (including extensions) and after    records. In cases where a trust or another 
used to report values to the IRS. One          July 2015, the Form 8971 and                 estate is a beneficiary and has multiple 
Schedule A is provided to each                 Schedule(s) A are due 30 days after the      trustees or executors, providing 
beneficiary receiving property from an         filing date.                                 Schedule A to one trustee or executor is 
estate.                                        Form 8971 is a separate filing               enough to meet the requirement.
        Provide each beneficiary only          requirement from the estate’s Form 706,      Private delivery services.  Certain 
                                               706-NA, or 706-A, and should not be          private delivery services designated by the 
CAUTION own Schedule A. Do not provide 
!       with a copy of that beneficiary’s      attached to the respective estate tax        IRS may be used to meet the “timely 
a copy of the Form 8971 with or without        return. The 8971 and attached                mailing as timely filing” rule for tax returns. 
attached Schedule(s) A to any beneficiary.     Schedule(s) A must be filed with the IRS,    These private delivery services include 
                                               separate from any and all other tax returns  only the following.
Certain property received by a                 filed by the estate.                         Federal Express (FedEx): FedEx 
                                                                                            Priority Overnight, FedEx Standard 
beneficiary may be subject to a                Note. Notice 2015-57, 2015-36 I.R.B.         Overnight, FedEx 2Day, FedEx 
consistency requirement, meaning that the      294, available at www.irs.gov/irb/           International Priority, FedEx International 
beneficiary cannot use a value higher than     2015-36_IRB/ar12.html, made February         First, FedEx First Overnight, FedEx 
the value reported on Schedule A as the        29, 2016, the due date for:                  International Next Flight Out, and FedEx 
beneficiary’s initial basis in the property.   All Forms 8971 (including the attached       International Economy.
                                               Schedule(s) A) required to be filed with the United Parcel Service (UPS): UPS Next 
Who Must File                                  IRS after July 31, 2015, and before          Day Air, UPS Next Day Air Saver, UPS 
An executor of an estate or other              February 29, 2016; and                       2nd Day Air, UPS 2nd Day Air A.M., UPS 
person(s) required to file Form 706 or          All Schedules A required to be              Worldwide Express Plus, UPS Worldwide 
Form 706-NA under sections 6018(a) and         provided to beneficiaries after July 31,     Express, and UPS Next Day Air Early AM.
6018(b) or a qualified heir required to file   2015, and before February 29, 2016.
Form 706-A under section 2032A, if the                                                      The private delivery service can tell you 
return is filed after July 2015, and whether                                                how to get written proof of the mailing 
or not that form is filed timely, is required                                               date.
to file Form 8971 with attached 
Schedule(s) A with the IRS and to provide 
each beneficiary listed on the Form 8971 
with that beneficiary’s Schedule A.

Jan 28, 2016                                                Cat. No. 68440S

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Supplemental Forms 8971 executor of an estate or other person a TIN, a beneficiary's surname, and the
required to file Form 8971 fails to file a value of the asset the beneficiary is
and Schedules A correct Form 8971 and/or Schedule A with receiving from the estate.
The value of the property to be reported the IRS by the due date and reasonable
on the initial Form 8971 and the attached cause is not shown, a penalty may be Note. A TIN is a Social Security Number
Schedules A is the fair market value of the imposed. The penalty applies if there is a (SSN), an Employer Identification Number
asset as reported on the estate tax return. failure to file timely, a failure to include all (EIN), an Individual Taxpayer Identification
However, the final value for purposes of information required to be shown on the Number (ITIN), or any other number used
the federal estate tax may differ from that form or schedule, a failure to include by the IRS in the administration of tax
reported on the estate tax return. A value correct information on the form or laws.
is considered “final” when: schedule, or a failure to file a correct Failure to furnish correct Schedules A
The value of the property shown on an supplemental Form 8971 and/or to beneficiaries by the due date (sec
estate tax return filed with the IRS is not Schedule A by the due date. A complete tion 6722). If the executor of an estate or
contested by the IRS before the period of Form 8971 includes all Schedule(s) A. other person required to file Form 8971
assessment expires; Only one penalty will apply for all fails to provide a correct Schedule A to a
The value of the property is specified by failures relating to a single filing of a single beneficiary and does not show reasonable
the IRS and is not timely contested by the Form 8971 and the Schedule(s) A cause, a penalty may be imposed. The
estate (or other person required to file required to be filed along with it. Each penalty applies if there is a failure to
under section 6018(b)); or filing of a Form 8971 with Schedule(s) A is provide the Schedule A by the due date, a
The value of the property is determined a separate filing, regardless as to whether failure to include all information required to
by a court or pursuant to a settlement the filing is of the initial Form 8971 and be shown on the schedule, a failure to
agreement with the IRS, including the Schedule(s) A or a supplemental Form include correct information on the
resolution of a claim for abatement or 8971 and Schedule(s) A. schedule, or a failure to provide a correct
refund. supplemental Schedule A by the due date.
The amount of the penalty depends on
If information reported on Form 8971 when the correct Form 8971 with The penalty applies for each Schedule A
and the Schedule(s) A filed with the IRS or Schedule(s) A is filed. required to be provided.
provided to a beneficiary differs from the The penalty is as follows. The amount of the penalty depends on
final value (as the result of the resolution $50 per Form 8971 (including all when a correct Schedule A is provided.
of a valuation dispute or otherwise), the Schedule(s) A) if it is filed within 30 days The penalty is as follows.
executor or other person required to make after the due date. The maximum penalty $50 per Schedule A if it is provided
this filing must file a supplemental Form is $532,000 per year (or $186,000 if the within 30 days after the due date. The
8971 and affected Schedule(s) A with the taxpayer qualifies for lower maximum maximum penalty is $532,000 per year (or
IRS and provide an updated supplemental penalties, as described below). $186,000 if the taxpayer qualifies for lower
Schedule A to each affected beneficiary $260 per Form 8971 (including all maximum penalties, as described below).
no later than 30 days after the adjustment. Schedule(s) A) if it is filed more than 30 $260 per Schedule A if it is provided
See Where To File, earlier. On both the days after the due date or if it is not filed. more than 30 days after the due date or if
supplemental Form 8971 and each The maximum penalty is $3,193,000 per it is not provided. The maximum penalty is
supplemental Schedule A, the year ($1,064,000 if the taxpayer qualifies $3,193,000 per year ($1,064,000 if the
“Supplemental Filing” box should be for lower maximum penalties, as taxpayer qualifies for lower maximum
checked and only the information that has described below). penalties, as described below).
changed should be reported. All penalty amounts shown are subject All penalty amounts shown are subject
If the executor or other person required to adjustment for inflation. to adjustment for inflation.
to file Form 8971 has been notified that a Lower maximum penalties. You qualify Lower maximum penalties. You qualify
Form 706, Form 706-NA, or Form 706-A for lower maximum penalties if your for lower maximum penalties if your
related to the Form 8971 and Schedule(s) average annual gross receipts for the 3 average annual gross receipts for the 3
A has been selected for examination, a most recent tax years (or for the period most recent tax years (or for the period
copy of the supplemental Form 8971 with you were in existence, if shorter) ending you were in existence, if shorter) ending
attached supplemental Schedule(s) A before the calendar year in which the before the calendar year in which the
should be provided to the office information returns were due are $5 million information returns were due are $5 million
conducting the examination. or less. or less.
Intentional disregard of filing require Intentional disregard of filing require
Rounding Off to Whole ments. If any failure to file a correct Form ments. If any failure to provide a correct
Dollars 8971 or Schedule A is due to intentional Schedule A is due to intentional disregard
The value of property should be reported disregard of the requirements to file a of the requirements to provide correct
in U.S. dollars and rounded to correct Form 8971 and Schedule(s) A, the Schedules A, the penalty is at least $530
whole-dollar amounts. To round, drop minimum penalty is at least $530 per Form per Schedule A with no maximum penalty.
amounts under 50 cents and increase 8971 and the Schedule(s) A required to be
amounts from 50 to 99 cents to the next filed with it, with no maximum penalty. Inconsequential error or omission. An
inconsequential error or omission is not
dollar. For example, $1.39 becomes $1 Inconsequential error or omission. An considered a failure to include correct
and $2.55 becomes $3. If you add two or inconsequential error or omission is not information. An inconsequential error or
more amounts to figure an item's value, considered a failure to include correct omission cannot reasonably be expected
include the cents when adding the information. An inconsequential error or to prevent or hinder the beneficiary from
amounts and round off only the total. omission does not prevent or hinder the timely receiving correct information and
IRS from processing the Form 8971 and using the information to report basis on the
Penalties the Schedule(s) A required to be filed beneficiary’s own return. Errors and
Failure to file correct Forms 8971 by along with it. Errors and omissions that are omissions that are never inconsequential
the due date (section 6721). If the never inconsequential are those related to are those related to (a) the value of the

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asset the beneficiary is receiving from the Line 6. Provide only the TIN of the sign the form as a paid preparer and give
estate, and (b) a significant item in a executor listed on line 4 and see the a copy of the completed Form 8971 and/or
beneficiary's address. instructions for line 8. Schedule(s) A to the executor required to
file Form 706, Form 706-NA, or Form
Reasonable cause exception to the Line 7. Provide only the address of the 706-A.
penalties for failing to file Forms 8971 executor listed on line 4. Use Form 8822,
and Schedules A and for failing to pro Change of Address, to report a change of Note. A paid preparer may sign original or
vide Schedules A to beneficiaries. The the executor’s address. Also, see the amended returns by rubber stamp,
penalties for failing to file correct Form instructions for line 8. mechanical device, or computer software
8971 and Schedules A with the IRS and program.
for failing to provide correct Schedules A Line 8. On an attached statement,
to beneficiaries will not apply to any failure provide the name, address, telephone
that is shown to be due to reasonable number, and TIN of each executor (if any) Signature and Verification
cause and not to willful neglect. In general, other than the one named on line 4. All executors shown on Form 8971 and
listed on any attached statement are
it must be shown that the failure was due Line 9. If the executor made an election responsible for the reporting requirements
to an event beyond the taxpayer’s control on the estate tax return to use alternate related to Form 8971 and Schedule(s) A.
or due to significant mitigating factors. It valuation under section 2032, provide the However, it is enough for only one of the
must also be shown that the executor or alternate valuation date. executors to sign Form 8971.
other person required to file acted in a
responsible manner and took steps to Form 8971 is signed under penalties of
avoid the failure. Part II — Beneficiary
perjury and all executors are responsible
Information for the information included on Form 8971
Penalties for Inconsistent A beneficiary is an individual, trust, or and Schedule(s) A as filed with the IRS
other estate who has acquired (or is and Schedules A provided to
Filing expected to acquire) property from the beneficiaries. All executors are also liable
Beneficiaries who report basis in property estate. If the executor is also a beneficiary for all applicable penalties.
that is inconsistent with the amount on the who has acquired (or is expected to
Schedule A may be liable for a 20% acquire) property from the estate, the
accuracy-related penalty under section executor is a beneficiary for purposes of Schedule A — Information
6662. the Form 8971 and Schedule A. Regarding Beneficiaries
Column A. Enter the name of each Acquiring Property From a
Obtaining Forms and
individual, trust, or other estate that Decedent
Publications To File or Use acquired (or is expected to acquire) Executors of estates filing Form 8971 are
You can access the IRS website 24 hours property from the estate. Retain a copy of required to complete a Schedule A for
a day, 7 days a week, at IRS.gov to: the Form 8971 (including all attached each beneficiary that acquired (or is
Download forms, instructions, and Schedule(s) A) for the estate’s records. expected to acquire) property from the
publications; Column B. Enter the TIN of each estate. You will need a copy of the Form
Order IRS products; beneficiary listed. Entering “none,” 706, Form 706-NA, or Form 706-A filed by
Research tax questions; “unknown,” or similar language, or the estate of the decedent to complete this
Search publications by topic or otherwise failing to enter a TIN, will cause schedule. All property acquired (or
keyword; and the form to be considered incomplete and expected to be acquired) by a beneficiary
Sign up to receive local and national tax may subject the estate to penalties. must be listed on that beneficiary’s
news by email. Schedule A. If the executor has not
Column D. For each beneficiary, enter determined which beneficiary is to receive
the date on which the executor gave
Specific Instructions an item of property as of the due date of
Schedule A to the beneficiary. See Where the Form 8971 and Schedule(s) A, the
Complete Form 8971 and each attached To File, earlier. executor must list all items of property that
Schedule A in its entirety. A form or
schedule filed with the IRS without entries Return preparer. Permission to discuss could be used, in whole or in part, to fund
in each field will not be processed. A form the Form 8971 is limited to the information the beneficiary’s distribution on that
with an answer of “unknown” will not be reported on (or required to be reported on) beneficiary’s Schedule A. (This means
considered a complete return. the Form 8971 and attached Schedule(s) that the same property may be reflected
A and does not authorize the return on more than one Schedule A.) A
Part I — Decedent and preparer to represent the estate before the supplemental Form 8971 and
IRS or to enter into any agreements with corresponding Schedule(s) A should be
Executor Information the IRS respecting the Form 8971 and filed once the distribution to each such
Line 3. Enter the SSN of the decedent. If attached Schedule(s) A. beneficiary has been made.
the decedent did not have an SSN, the Complete and attach Form 2848, Use and duplicate page A-2
executor (or other person required to file Power of Attorney and Declaration of (Schedule A—Continuation Sheet) if
Form 706) should obtain one for the Representative, if the executor would like additional space is needed to list the
decedent by filing Form SS-5, Application the return preparer to represent the estate property acquired (or expected to be
for a Social Security Card. You can get before the IRS with respect to the Form acquired) by a beneficiary. Attach a copy
Form SS-5 online at 8971 and Schedule(s) A or any other of each completed Schedule A to Form
www.socialsecurity.gov or by calling the matter related to the estate. Completing 8971 and submit to the IRS. Provide a
SSA at 1-800-772-1213. Form 2848 may authorize the person copy of each Schedule A only to the
Line 4. If there is more than one executor, designated on that form to sign beneficiary named on that Schedule A. Do
enter the name of one executor and see agreements, consents, waivers, or other not provide a copy of the Form 8971 to a
the instructions for line 8. documents. beneficiary. See the instructions under
Anyone who is paid to prepare the Where To File, earlier.
Form 8971 and/or any Schedule A must

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Column A. Number the items received by the value reported on a Schedule A that may also disclose this information to other
the beneficiary. Continue this numbering has already been filed with the IRS or countries under a tax treaty, to federal and
on page A-2 of the provided to a beneficiary changes (as a state agencies to enforce federal non-tax
Schedule A—Continuation Sheet (if result of the resolution of a valuation issue criminal laws, or to federal law
necessary). or otherwise), you must file a enforcement and intelligence agencies to
supplemental Form 8971 and associated combat terrorism. Failure to provide this
Column B. Use the same description in Schedule(s) A with the IRS and provide an information, or providing false information,
column B that the executor used for the updated Schedule A to each affected may subject you to penalties.
property on the Form 706, Form 706-NA, beneficiary no later than 30 days after the
or Form 706-A. Include in column B the adjustment. The time needed to complete and file
schedule and item number where the this form and related schedules will vary
property was reported on Form 706, Form Privacy Act and Paperwork Reduction depending on individual circumstances.
706-NA, or Form 706-A, as applicable. Act Notice. We ask for the information on The estimated average time is:
For more information on details to be this form to carry out the Internal Revenue
included by asset type or schedule, see laws of the United States. You are Recordkeeping . . . . . . . . 3hr., 49 min.
the Instructions for Form 706, Form required to give us the information. We Learning about the law or the
706-NA, or Form 706-A. If the beneficiary need it to ensure that you are complying form . . . . . . . . . . . . . . . 42 min.
acquired (or is expected to acquire) a joint with these laws and to allow us to figure Preparing, copying,
interest, a fractional interest, or any other and collect the right amount of tax. assembling, and sending the
interest in property which is less than Sections 6035 and 6109, and the form to the IRS . . . . . . . . 47 min.
100%, indicate the interest in the property regulations require you to provide this
the beneficiary will acquire. information.
If you have comments concerning the
Column C. An entry (Y or N) is required You are not required to provide the accuracy of these time estimates or
in this column for each asset. Indicate “Y” information requested on a form that is suggestions for making this form simpler,
if the property contributed to the amount of subject to the Paperwork Reduction Act we would be happy to hear from you. You
the federal estate tax payable by the unless the form displays a valid OMB can send us comments from www.irs.gov/
estate. control number. Books or records relating formspubs/. Click on “More Information”
Generally, any property that qualifies to a form or its instructions must be and then on “Give us feedback.” You can
for a marital deduction under section 2056 retained as long as their contents may also send your comments to the Internal
or 2056A or a charitable deduction under become material in the administration of Revenue Service, Tax Forms and
section 2055 will not generate estate tax any Internal Revenue law. Generally, tax Publications Division, 1111 Constitution
and “N” should be indicated. returns and return information are Ave. NW, IR-6526, Washington, DC
confidential, as required by section 6103.
Column D. Generally, the valuation date 20224. Do not send the tax form to this
However, section 6103 allows or requires
of property will be the decedent’s date of address. Instead, see Where To File,
the Internal Revenue Service to disclose earlier.
death. If the estate elected to use an information from this form in certain
alternate valuation date, list the value of circumstances. For example, we may
the property on the alternate valuation
disclose information to the Department of
date. See section 2032 for additional
Justice for civil or criminal litigation, and to
guidance.
cities, states, the District of Columbia, and
Column E. List the value reported on U.S. commonwealths or possessions for
Form 706, Form 706-NA, or Form 706-A. If use in administering their tax laws. We

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