Form 8971: Basis Reports for Beneficiaries of an Estate
Published November 7, 2026
When a person dies, the estate may need to report property values to the IRS and to each beneficiary. Form 8971, Information Regarding Beneficiaries Acquiring Property From a Decedent, does this. The Schedule A attached to it gives each beneficiary the basis information they need.
The Instructions for Form 8971 and Schedule A (Rev. August 2025) explain the rules. This post is general information, not advice about a specific estate.
Plain-language terms
The executor is the person in charge of the estate. A beneficiary is a person who receives property from it. Form 706 is the federal estate tax return. Basis is the starting value used to figure gain or loss when property is sold. The Schedule A is the attachment that reports each beneficiary's property.
Why basis information matters
Basis information helps beneficiaries follow the consistent basis rule in section 1014(f). A beneficiary cannot use a higher value than the one on the Schedule A as the starting basis of that property.
Who must file
An executor must file Form 706 or Form 706-NA when required. The executor must also file Form 8971 and give Schedules A to certain beneficiaries. This applies to estates with a Form 706 or 706-NA filed after July 2015, even if that form was filed late.
When Form 8971 is not required
The instructions say Form 8971 is not required in three situations:
- The gross estate plus adjusted taxable gifts is less than the basic exclusion amount for the year of death.
- Estate tax forms other than Form 706 or 706-NA are filed, such as Forms 706-QDT, 706-CE, or 706-GS(D).
- The return is filed only for a generation-skipping transfer tax allocation or election, a portability election, or as a protective filing.
The deadline
Form 8971 and each Schedule A have the same deadline. It is the earlier of two dates. The first is 30 days after the Form 706 or 706-NA due date, including extensions. The second is 30 days after the form is actually filed. If the due date falls on a Saturday, Sunday, or legal holiday, the executor may file on the next business day.
Who gets a Schedule A
Give a Schedule A only to the beneficiary listed on it. Do not give any beneficiary a copy of the whole Form 8971. The executor can deliver a Schedule A in person, by email, by mail, or by a private delivery service. The executor records the date on Form 8971, Part II, column (d), and keeps proof of delivery.
If a trust or estate is the beneficiary, giving the Schedule A to one trustee or executor is enough.
When the information changes
The executor must file a supplement when reported information changes. Examples: the beneficiary changes, the property changes, or the final value is different from the value reported. For property acquired after the Form 706 due date, the executor generally has until January 31 of the next year. Other changes generally need a supplement within 30 days.
Penalties
An executor who does not file a correct Form 8971 by the due date, without reasonable cause, may face a penalty under section 6721. The instructions say this can apply even when no estate tax is due.
Checklist for beneficiaries
- Ask the executor whether a Schedule A has been or will be furnished to you.
- Keep the Schedule A with your records for the inherited property.
- Ask for the Schedule A before you sell the property.
- Write down the date you received it.
- Compare the value on the Schedule A with any appraisal you have.
- Read the basics of inherited property before you sell. See Inherited Property: Why Basis Is Usually the Value at Death.
Sources: Sources: IRS, Instructions for Form 8971 and Schedule A (Rev. August 2025) (https://www.irs.gov/pub/irs-prior/i8971--2025.pdf) This is general information, not advice about your specific return.
More guides on: Homes, property and real estate
