Instructions For Form 8971 And Schedule A - 2016 (Page 3 of 4) in pdf

asset the beneficiary is receiving from the

sign the form as a paid preparer and give

Line 6. Provide only the TIN of the

estate, and (b) a significant item in a

a copy of the completed Form 8971 and/or

executor listed on line 4 and see the

beneficiary's address.

Schedule(s) A to the executor required to

instructions for line 8.

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.

Line 8. On an attached statement,

for failing to provide correct Schedules A

provide the name, address, telephone

to beneficiaries will not apply to any failure

Signature and Verification

number, and TIN of each executor (if any)

that is shown to be due to reasonable

All executors shown on Form 8971 and

other than the one named on line 4.

cause and not to willful neglect. In general,

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

Part II — Beneficiary

Form 8971 is signed under penalties of

avoid the failure.

Information

perjury and all executors are responsible

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

Filing

and Schedules A provided to

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

Schedule A — Information

accuracy-related penalty under section

executor is a beneficiary for purposes of

Regarding Beneficiaries

6662.

the Form 8971 and Schedule A.

Acquiring Property From a

Obtaining Forms and

Column A. Enter the name of each

Decedent

individual, trust, or other estate that

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;

estate. You will need a copy of the Form

Column B. Enter the TIN of each

Order IRS products;

706, Form 706-NA, or Form 706-A filed by

beneficiary listed. Entering “none,”

Research tax questions;

the estate of the decedent to complete this

“unknown,” or similar language, or

Search publications by topic or

schedule. All property acquired (or

otherwise failing to enter a TIN, will cause

keyword; and

expected to be acquired) by a beneficiary

the form to be considered incomplete and

must be listed on that beneficiary’s

may subject the estate to penalties.

news by email.

Schedule A. If the executor has not

Column D. For each beneficiary, enter

determined which beneficiary is to receive

Specific Instructions

the date on which the executor gave

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

could be used, in whole or in part, to fund

Return preparer. Permission to discuss

schedule filed with the IRS without entries

the beneficiary’s distribution on that

the Form 8971 is limited to the information

in each field will not be processed. A form

beneficiary’s Schedule A. (This means

reported on (or required to be reported on)

with an answer of “unknown” will not be

that the same property may be reflected

the Form 8971 and attached Schedule(s)

considered a complete return.

on more than one Schedule A.) A

A and does not authorize the return

Part I — Decedent and

supplemental Form 8971 and

preparer to represent the estate before the

corresponding Schedule(s) A should be

IRS or to enter into any agreements with

Executor Information

filed once the distribution to each such

the IRS respecting the Form 8971 and

beneficiary has been made.

attached Schedule(s) A.

Line 3. Enter the SSN of the decedent. If

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

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

designated on that form to sign

beneficiary named on that Schedule A. Do

Line 4. If there is more than one executor,

agreements, consents, waivers, or other

not provide a copy of the Form 8971 to a

enter the name of one executor and see

documents.

beneficiary. See the instructions under

the instructions for line 8.

Where To File, earlier.

Anyone who is paid to prepare the

Form 8971 and/or any Schedule A must

Instructions For Form 8971 And Schedule A - 2016 Page 3

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