IRS Form 8971 is required to be filed by executors to report the final estate tax value of property distributed or to be distributed from an estate.

For estate tax returns filed after July 2015, executors and others who are required to file Form 706 must complete and file Form 8971 and Schedule A to report the final estate tax value of property distributed or to be distributed from the estate. A copy of Schedule A must be provided to the beneficiary of the property. Due to delays in issuing regulations and the new form, IRS extended the filing deadline of Form 8971 and Schedule A until June 30, 2016, for some estates; normally the due date is 30 days after the earlier of the due date (with extensions) of the 706, or the date filed. The 8971 and Schedule A are filed separately from the 706.

A beneficiary may not use a value higher than the value reported on Schedule A of Form 8971 as their initial basis in the property, and if the beneficiary reports a basis that is inconsistent with the amount reported on Schedule A, the beneficiary may be liable for a 20% accuracy-related penalty. The consistency in reporting applies only to property that was includible in the decedent’s gross estate and resulted in increased estate tax liability (reduced by applicable credits) on the estate. If a 706 is not required because the value of the estate is less than the lifetime exclusion amount but is filed only to preserve the deceased spouse’s  unused exclusion for the surviving spouse, Form 8971 is not required to be filed. See Chapter 10 - "Basis" for further information.