What is Form 8971?
Form 8971, also known as the Information Regarding Beneficiaries Acquiring Property from a Decedent, is important for estate tax purposes. It helps the IRS track the fair market value of property inherited from someone who has passed away. This form ensures that beneficiaries report the correct value when they sell inherited assets. Filing Form 8971 accurately is crucial to avoid penalties and ensure compliance with tax laws. It provides transparency and helps maintain the integrity of the estate tax system.
What is Form 8971 used for?
Form 8971 is used for reporting the final value of a decedent's assets for estate tax purposes. This form is important for various reasons:
- to report asset values for the estate.
- to provide beneficiaries with information on their inheritance.
- to comply with IRS regulations for estate tax filings.
How to fill out Form 8971?
- 1
Open Form 8971 in the PDF editor.
- 2
Enter the decedent’s name and other required information in the fields.
- 3
Fill out the details for each beneficiary, including their names and addresses.
- 4
Include the fair market value of each asset as of the date of death.
- 5
Review all entries for accuracy and completeness.
- 6
Save and sign the completed form.
- 7
File the form with the IRS by mailing it to the appropriate address.
Who is required to fill out Form 8971?
Form 8971 is completed by executors or administrators of an estate for reporting purposes. This form is used to provide beneficiaries with information about the value of inherited property.
After submission, beneficiaries of the estate use this form for their own tax reporting. It helps them understand the fair market value of the assets they received.
When is Form 8971 not required?
Form 8971 is not required for certain situations. If the estate's gross value is less than $11.7 million for 2021, the form isn't necessary. Additionally, if the estate does not have any property subject to estate tax, you can skip this form.
Beneficiaries who receive property without any tax implications also do not need to file Form 8971. Always check the latest IRS guidelines for any updates.
When is Form 8971 due?
The deadline for Form 8971 is 30 days after the date of the decedent's death. If the due date falls on a weekend or holiday, the deadline shifts to the next business day.
Make sure to file this form accurately to avoid penalties. Always double-check the information and keep a copy for your records to ensure everything is in order.
How to get a blank Form 8971?
To get a blank Form 8971, issued by IRS, simply visit our website. The form is pre-loaded in our editor, allowing you to fill it out directly. Once completed, you can download it for your records. Remember, our platform does not support filing forms.
How to sign Form 8971?
Form 8971 must be signed by the executor under penalties of perjury. On the signature line labeled "Sign Here" near the end of the form, the executor should provide their handwritten signature and the date.
Only one executor is required to sign, even if multiple executors are listed. If a paid preparer completes the form, the preparer must also sign in the "Paid Preparer Use Only" section, providing their name, signature, date, and other identifying information. Paid preparers may sign using a rubber stamp, mechanical device, or computer software program.
Where to file Form 8971?
Form 8971 must be filed by mail. Currently, there is no option to file this form online.
Be sure to send the completed form to the address specified in the instructions. Always check the latest IRS guidelines for updates.
