In a letter to the IRS, the AICPA provided comments regarding the updating of instructions for Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent.
The Treasury and IRS are currently considering updating the form instructions for the final regulations issued Sept. 16, 2024, on consistent basis reporting between an estate and persons acquiring property from decedent.
Form 8971 is an important tax form for estates required to file a federal estate tax return. Executors file this form to report the final estate tax value of property distributed or to be distributed from the estate.
In the letter, the AICPA identified two areas it believes additional guidance is necessary to enhance taxpayer and tax practitioner clarity and compliance.