The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 requires executors of an estate and other persons who are required to file a Form 706, Form 706-NA, or Form 706-A, to report to the Internal Revenue Service (IRS) and to each beneficiary receiving property from an estate the estate tax value of the property, if the return is filed after July 31, 2015. Form 8971 is used to report to the IRS and a Schedule A will be sent to each beneficiary and a copy of each Schedule A will be attached to the Form 8971. Some property received by a beneficiary may have a consistency requirement, meaning that the beneficiary must use the value reported on Schedule A as the beneficiaryâs initial basis the property.
An expedited approval process for Form 8971 is being requested due the very short time frame provided for implementation of new reporting requirements. The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (P.L. 114-41) was enacted on July 31, 2015. Section 2004 of the legislation inserted two new provisions into the Internal Revenue Code â sections 1014(f) and 6035. Form 8971 is being developed to implement the reporting requirements mandated for executors of estates in the new §6035. The new legislation was effective upon enactment (§2004(d)) and required reporting to begin reporting with 30 days (§6035(a)(3)(A)). IRS Office of Chief Counsel issued Notice 2015-57, effective August 21, 2015, which delayed any required reporting under §6035 due before February 29, 2016, to February 29, 2016.
An expedited process for developing and approving the Form 8971 will be required to ensure that taxpayers are able to meet this new deadline for reporting because the form will need to be available to taxpayers before the expiration of time periods established under normal processing times.
PL:
Pub.L. 114 - 41 SEC. 2004
Name of Law: Surface Transportation and Veterans Health Care Choice Improvement Act of 2015
PL: Pub.L. 114 - 41 Sec. 2004 Name of Law: Surface Transportation and Veterans Health Care Choice Improvement Act of 2015
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Form 8971 Form 8971--Information Regarding Beneficiaries Acquiring Property from a Decedent
Notice 2015-57.pdf
Form 8971 Supporting Statement V.2_REV.doc
Form 8971--Information Regarding Beneficiaries Acquiring Property from a Decedent