executor
an executor who is required to file a Form 706 also is required to file a Form 8971 with the IRS to report the “final value” of certain property, the recipient of that property, and other information prescribed by the Form 8971 and the related instructions.

What must be reported on form 8971 if filing the form is required?

The filing requirements are met by filing Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent, and the attached Schedule A [IRC section 6035; Proposed Regulations section 1.6035-1(g)(1)]. Form 8971 lists the names, taxpayer identification numbers, and addresses of each beneficiary.

Do all estates have to file form 706?

Form 706 must generally be filed along with any tax due within nine months of the decedent’s date of death. 3 However, not every estate needs to file Form 706. Supplemental forms, such as 706-A, 706-GS(D-1), 706-NA, or 706-QDT, may also need to be filed.

What does IRS Code 706 mean?

Form 706 is the United States Estate and Generation-Skipping Transfer Tax Return. It’s a tax form used to compute the federal estate tax and generation-skipping transfer (GST) tax owed by the estate of a decedent.

Do IRAs get reported on Form 8971?

Assets not listed on Schedule A of Form 8971, with certain exceptions, will have a zero basis. Then, any money received from such unlisted assets will trigger tax liabilities. The same could be true for traditional IRAs holding after- tax dollars from non-deductible contributions as well as nonqualified annuities.

Who can sign a 706?

Form 706 must be filed by the executor of the estate of every U.S. citizen or resident: Whose gross estate, adjusted taxable gifts, and specific exemptions total more than the exclusion amount: $11,700,000 for decedents who died in 2021, and $11,580,000 for 2020; or 2

When do beneficiaries need to file Form 8971?

About Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent. Executors file this form to report the final estate tax value of property distributed or to be distributed from the estate, if the estate tax return is filed after July 2015. This form, along with a copy of every Schedule A, is used to report values to the IRS.

What do you need to know about form 706-na?

Form 706-NA is used to compute estate and generation-skipping transfer (GST) tax liability for nonresident alien decedents. The estate tax is imposed on the transfer of the decedent’s taxable estate rather than on the receipt of any part of it. For information about transfer certificates for U.S. assets, write to the following address.

Can a sale of an estate be reported on form 8971?

Assets that are to be sold as part of the estate administration (e.g. to pay expenses or cash bequests) should not be reported on Form 8971; even if the sale occurs after the due date of the return.  Only assets that are distributed (or distributable) to beneficiaries are to be reported on the form. 10.

What are the penalties for failing to file Form 8971?

Inconsequential error or omission. Reasonable cause exception to the penalties for failing to file Forms 8971 and Schedules A and for failing to provide Schedules A to beneficiaries. Line 3. Line 4. Line 6. Line 7. Line 8. Line 9. Return preparer. Section references are to the Internal Revenue Code unless otherwise noted.