Preparing Form 8971 and Basis Consistency
Author: Klaralee R. Charlton
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Form 8971 was developed by the IRS to enable practitioners to comply with the new basis consistency rules enacted under IRC 1014(f) and 6035. In this presentation you will learn when and how to complete Form 8971 and when the form is required to be supplemented in later years. You will also learn how to comply with the basis consistency rules in situations where Form 8971 is not required by the regulations.
Publication Date: June 2020
Designed For
Attorneys, CPAs, Enrolled Agents
Topics Covered
- Estate Tax in a Nutshell
- Basis Consistency Issues & Case Law Leading up to IRC 1014(f), 6035 and Form 8971
- Review of Internal Revenue Code Sections 1014 and 6035
- When Does Basis Consistency & Reporting Apply?
- Overview of Form 8971, When and How to File It
- Penalties for Failing to Comply with Reporting and Basis Consistency Rules
- Supplemental Forms 8971
- How to Comply with Basis Consistency when Form 8971 Does Not Apply
Learning Objectives
- Identify when Form 8971 must be filed
- Describe how to file Form 8971
- Recognize the importance of complying with the basis consistency rules
- Recognize how to analyze the impact of the basis consistency rules
- Identify how to recommend basis reporting mechanisms when Form 8971 is not required
- Recognize which bequests do not increase the estate's tax liability and is not subject to basis consistency
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
