Form 8971 reports to the IRS which beneficiaries received property from an estate that had to file Form 706 or 706-NA, and Schedule A gives each beneficiary the value of what they got. That value caps the beneficiary's starting basis under the consistent basis rule. It's due 30 days after the Form 706 due date or 30 days after it's filed, whichever is earlier, and it isn't needed when the estate return was filed only to elect portability.
Everything here comes from the IRS Instructions for Form 8971 and Schedule A (Rev. August 2025), as of October 2026.
Why Form 8971 exists: the consistent basis rule
Under section 1014(f), someone who inherits property subject to the rule can't use a basis higher than the value reported on their Schedule A. That's the whole point of the form: the estate tax value and the heir's income tax basis line up. When the heir later sells, the gain is measured from that reported value.
Who must file, and who can skip it
The executor, or anyone else required to file Form 706 or 706-NA under section 6018, files Form 8971 if the estate return was filed after July 2015, on time or late. More than one person can be required to file for the same estate. You don't file when:
- the gross estate plus adjusted taxable gifts and specific exemption is below the basic exclusion amount for the year of death;
- the only estate tax forms filed are ones like 706-QDT, 706-CE or 706-GS(D); or
- the Form 706 was filed only to elect portability of the deceased spousal unused exclusion, only for a GST allocation or election, or only as a protective filing.
That portability point is the one many executors miss. A Form 706 filed purely to pass on the unused exclusion doesn't trigger Form 8971.
The deadline
| Event | Form 8971 and each Schedule A due |
|---|---|
| Form 706 filed before its due date | 30 days after the date it's filed |
| Form 706 filed on its due date or later | 30 days after the due date, including extensions |
| Beneficiary receives new, non-excepted property after that | Supplemental Schedule A by 31 January of the following year |
| Information on a filed Form 8971 changes | Supplement within 30 days after the executor has the information showing a change is needed |
The rule in the instructions is simply the earlier of 30 days after the required filing date, extensions included, or 30 days after filing. A weekend or legal holiday due date moves to the next business day. The executor has to file on time even if no Schedule A is due yet.
Filing and furnishing, step by step
- Fill in Form 8971 with the decedent's and executor's details and a line for each beneficiary in Part II.
- Prepare a Schedule A for each beneficiary listing only the property they received or may receive and its estate tax value.
- Send each beneficiary only their own Schedule A, in person, by email, by US mail or by a designated private delivery service. Never send them Form 8971 itself.
- Record the date each Schedule A was provided in Part II, column (d), and keep proof of mailing or delivery.
- File Form 8971 with copies of every Schedule A, separately from any other estate return, at Internal Revenue Service, Mail Stop 824G, 7940 Kentucky Drive, Florence, KY 41042.
Where a trust or another estate is the beneficiary, giving Schedule A to one trustee or executor is enough.
Property you don't report
Excepted property doesn't go on Schedule A. The list includes US dollars and dollar bank deposits, dollar certificates of deposit, dollar cash collateral, dollar-priced shares in a registered fund that holds short-term cash investments under Rule 2a-7, lump-sum life insurance paid in dollars, tax and other refunds, notes forgiven in full at death, household and personal effects that don't need an appraisal, and property completely sold, exchanged or otherwise disposed of in a taxable transaction before it's distributed, whether or not there's a gain.
Penalties
Penalties apply under sections 6721 and 6722 for failing to file or furnish correct, complete forms on time, even if the estate owed no estate tax. The amount depends on how late the correct form is and is adjusted for inflation; the IRS publishes the current figures on its information return penalties page. An inconsequential error isn't treated as a failure.
Who counts as the executor, and what Schedule A shows
For Form 8971, executor means the executor, personal representative or administrator of the decedent's estate. If more than one person has to file Form 706 for the same estate, each of them can have a Form 8971 duty, so agree early who's doing it.
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On each Schedule A, two columns do most of the work. Column (g) is the valuation date, which is generally the date of death, or the alternate valuation date if the estate elected one under section 2032. Column (h) is the estate tax value of each item. Those two figures are what the beneficiary carries into their own records, and what the IRS compares when the property is later sold.
The verdict
If the estate filed Form 706 because it had to, put Form 8971 in the diary for 30 days after filing, list every beneficiary, and give each heir only their own Schedule A, with proof of delivery. If you filed only to pass on the unused exclusion, you can stop. And tell beneficiaries to keep their Schedule A: it's the basis they'll be held to when they sell. A representative named on Form 2848 can help with all of it.
Frequently asked questions
What is Form 8971?
It's the form an executor files to tell the IRS which beneficiaries acquired property from an estate that filed Form 706 or 706-NA, with a Schedule A for each beneficiary.
When is Form 8971 due?
By the earlier of 30 days after the Form 706 due date, including extensions, or 30 days after the Form 706 is filed.
Is Form 8971 required if Form 706 was filed only for portability?
No. Estate tax returns filed solely to elect portability of the DSUE amount don't require Form 8971.
Do beneficiaries get a copy of Form 8971?
No. Each beneficiary gets only their own Schedule A, never Form 8971 itself.
Can a beneficiary use a higher basis than Schedule A shows?
Not for property subject to the consistent basis requirement; the Schedule A value is the ceiling on their initial basis.
Where do I mail Form 8971?
To the Internal Revenue Service, Mail Stop 824G, 7940 Kentucky Drive, Florence, KY 41042, separately from any other estate return.
