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NEW IRS Form 8971 – BASIS reporting

HOT OFF THE PRESSES:  The Internal Revenue Service has released a draft of a new Form 8971 for reporting basis information in accordance with new IRC section 6035 for assets held by a decedent and reported on a federal estate tax return (Form 706) filed on or after August 1, 2015. The form says it is to be signed by the “executor” of the estate but I believe a “trustee” can sign also. In any event it is likely part of your fiduciary duty and you should talk to your accountant about this when you file a form 706 “estate tax return.”  Also, remember that estate tax returns are to be filed within 9 months of death but you can ask for a 6 month extension if you file for it within the first 9 months. The link above goes right to the sample form.

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10.0John Bernard Palley
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