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.
- 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.
- 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!