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:

(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.)

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.

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.

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.

Examples of changes to information that require supplement.

A non-exhaustive list of changes that require supplemental reporting includes the following.

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.

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.

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.

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 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.

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 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 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 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:

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:

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.

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.

Column (d).

For each beneficiary, enter the date on which the executor furnished Schedule A to the beneficiary.

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.

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.

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.

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.)