Do not use the where to file address on the first page of the Instructions for Form 8971. Filers should not rely on the mailing address listed on the first page of the Form 8971 instructions, as it may be outdated.
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.
Form 8971, together with the applicable Schedule A, must be filed no later than 30 days after the earlier of the date Form 706 is required to be filed or the date Form 706 is actually filed with the IRS. A separate Schedule A must be provided to each beneficiary, identifying only the property interests received by that beneficiary. 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 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 lists each item of property received by the beneficiary, the estate tax value of that property, and other identifying information necessary to ensure basis consistency for income tax purposes.
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.
Failure to comply with the information reporting requirements of Code Section 6035 may subject the executor to penalties under the failure-to-file provisions of Code Sections 6721 and 6724.
For the IRS Form 706 PDF:
For the IRS Form 8971 PDF:
2026 Update to where to file address for 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
The IRS has confirmed that estates filing Form 706 solely to elect portability are not required to file Form 8971. The IRS has also indicated that regulations under Code Section 6035 will further clarify reporting obligations. Executors and advisors should remain attentive to future guidance when administering taxable estates.
For further information regarding these matters, please contact Mr. Jenney 248 740 5688 or via email.
Brian R. Jenney
Shareholder