Do You Understand the
New Basis Consistency Regulations
and How to Properly Complete IRS Form 8971?

Well, you better! (And you better do so quickly, because there’s an important deadline coming up on June 30, 2016!)

This new IRS Form 8971 is going to be required for any estate required to file a Form 706. The IRS released draft instructions on January 6, but now, after public comment, on March 2nd, the U.S. Treasury issued its revised proposed regulations.  These revised regulations contain several major surprises that require the urgent attention of practitioners; the zero basis rule and the supplemental subsequent filing requirement.

  1. The Zero Basis Rule.

    SUMMARY:  The zero basis rule(s) provide that if assets are not property reported (i.e. omitted) on a form 706 the basis of the property will be zero.   The zero basis rule will likely increase the number of 706s that are filed.

  2. The Subsequent Filing Requirement.

    SUMMARY: The subsequent filing requirement mandates that heirs receiving property from an estate must report the later gift of that property to family members and certain controlled entities.

While Form 8971 itself seems manageable, the Schedule A is going to be a nightmare!  Each asset must be reported separately for each beneficiary.   Further, there will be special rules for IRD and for assets passing to charity or a spouse.  In trust and estate litigation the 30-day rule will be especially troublesome when a P.R. and their counsel are working diligently to prevent asset disclosures.  We will review the strategies that are developing to prevent or delay disclosures.

These filings cannot be extended and penalties exist for not filing in a timely manner!

This is why we have enlisted the help of nationally renowned CPA, Robert S. Keebler, CPA/PFS, MST, AEP (Distinguished), CGMA to navigate estate planners through this new form on a very special presentation entitled, “Understanding the New Basis Consistency Regulations and How to Properly Complete Form 8971″.

During this 90-minute presentation, Bob will cover:

  • The new basis consistency regulations, including the new revised regulations and the Zero Basis Rule and Subsequent Filing Requirement
  • The traps & tricks of completing new IRS Form 8971 (due on June 30th)
  • How to properly complete Schedule A
  • Special IRD rules
  • Assets passing to charity and spouse
  • And much, much more details necessary for properly completing Form 8971

Whatever you do, make sure that you’re up-to-speed and on top of this new IRS Form 8971 for your clients!

  • Program Title: Understanding the New Basis Consistency Regulations and How to Properly Complete Form 8971 (per the Proposed Regulations)
  • Speaker:
  • Duration: 90 minutes

Robert S. Keebler

CPA/PFS, MST, AEP (Distinguished), CGMA
Robert S. Keebler

Robert S. Keebler, CPA/PFS, MST, AEP (Distinguished), CGMA is a partner with Keebler & Associates, LLP and is a 2007 recipient of the prestigious Accredited Estate Planners (Distinguished) award from the National Association of Estate Planning Counsels. He has been named by CPA Magazine as one of the Top 100 Most Influential Practitioners in the United States and one of the Top 40 Tax Advisors to Know During a Recession. Mr. Keebler is the past Editor-in-Chief of CCH’s magazine, Journal of Retirement Planning, and a member of CCH’s Financial and Estate Planning Advisory Board. His practice includes family wealth transfer and preservation planning, charitable giving, retirement distribution planning, and estate administration. Mr. Keebler frequently represents clients before the National Office of the Internal Revenue Service (IRS) in the private letter ruling process and in estate, gift and income tax examinations and appeals.

In the past 20 years, he has received over 150 favorable private letter rulings including several key rulings of “first impression.” Mr. Keebler is nationally recognized as an expert in estate and retirement planning and works collaboratively with other experts on academic reviews and papers, and client matters. Mr. Keebler is the author of over 75 articles and columns and editor, author, or co-author of many books and treatises on wealth transfer and taxation, including the Warren, Gorham & Lamont of RIA treatise Esperti, Peterson and Keebler/Irrevocable Trusts: Analysis with Forms.

Mr. Keebler is a member of the editorial board of the Society of Financial Service Professionals “Keeping Current” series. He is a featured columnist for CCH’s Taxes Magazine – “Family Tax Planning Forum,” Steve Leimberg’s “News of the Week Newsletter” and the Bureau of National Affairs Tax Division. Bob also had his article “Is That Your ‘Final’ Answer?” published in Tax Management Compensation Planning Journal. Bob frequently is quoted in national publications such as New York Times, Chicago Tribune, Baltimore Sun, Barrons, Bloomberg Wealth Manager, Financial Advisor, Forbes, Kiplinger, Lawyer’s Weekly, On Wall Street, The Wall Street Journal, USA Today, Wealth Manager and Worth in addition to many local and regional newspapers.

He is a frequent speaker for legal, accounting, insurance and financial planning groups throughout the United States at seminars and conferences on advanced IRA distribution strategies, estate planning and trust administration topics including the AICPA’s Advanced Estate Planning, Personal Financial Planning Conference and Tax Strategies for the High Income Individual Conference.

Mr. Keebler graduated (cum laude) from Lakeland College with a degree in Accountancy and the University of Wisconsin – Milwaukee with a Masters in Taxation. Before practicing in Northeastern Wisconsin, he practiced with Price Waterhouse where he concentrated in taxation.

IMPORTANT NOTICE REGARDING CE CREDIT

The Ultimate Estate Planner, Inc. and the presenter are not registered Continuing Education Sponsors and this program is not pre-approved for continuing education credit for any state or regulatory agency.

However, please note that each program includes a Certificate of Completion and, depending on the license and the regulatory agency for which governs a participant’s CE credit, some professionals may be able to self-report his or her participation and receive credit. It is the responsibility of the participant to complete any process necessary to seek self-reported CE credit for his or her participation. By registering for a teleconference (or purchasing on On-Demand program), you understand that CE credit is not guaranteed or warranted by the presenter or The Ultimate Estate Planner, Inc.

Reviews

  1. Diane Brewer, CPA

    Very well done! It was very informative and full of useful information.

  2. Jan Copley, Attorney

    Bob, thanks for the great job on the teleconference about the basis consistency regulations. It was very helpful to me! I thought you did a great job with a difficult, complicated, and new subject. I appreciate all the work that went into it.

  3. Phil Kavesh, Attorney

    In over the last 30+ years of practice, my law firm has probably prepared thousands of estate tax returns. I think that this new zero basis rule announced in the new proposed basis consistency rules has to be one of the scariest traps for the unwary that I’ve ever seen!

    My biggest concern is that if we were fail to properly disclose basis information on new IRS Form 8971, that could open up a huge liability issue years down the road. A beneficiary is not going to be too happy when they go to sell an asset and suddenly they have a huge capital gains tax that could have been avoided.

    Plus, in a lot of states the statute of limitations does not run until this mistake is reasonably discoverable and that may not be deemed to occur until they sell the asset.

    I think practitioners really need to take this seriously and make sure that they’re up to speed on these new regs. Even though they’re only proposed regulations as of now, they’re already in effect.

    A huge thanks to Bob Keebler and his team for helping us all stay on top of this.

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