Consistent basis reporting between estate and person acquiring property from decedent

On Monday, Sept. 16, 2024, the IRS issued final regulations ( TC 9991 ) on consistent basis reporting between an estate and a person acquiring property from a decedent.

The final regulations provide guidance regarding the requirement that a recipient’s basis in certain property acquired from a decedent be consistent with the value of the property as finally determined for Federal estate tax purposes. This consistent basis reporting is required by H.R. 3236, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, which was signed into law on July 31, 2015.

The law created Section 6035, which requires the executor of an estate required to file an estate tax return to also provide statements to the IRS and to beneficiaries acquiring certain property from a decedent. This requirement also applies to 6018(b) filers.

Note: If the estate is not required to file an estate tax return ( see Which Estates Must File in the Instructions for Form 706 PDF , and Who Must File in the Instructions for Form 8971 PDF , please do not file Form 8971. Doing so may result in unnecessary correspondence from the IRS.

The law also added Section 1014(f), which requires consistent basis reporting between an estate and the beneficiary acquiring certain property from a decedent.

These changes apply to any estate tax return filed, and to property with respect to which an estate tax return is filed, after July 31, 2015.

Note: The Form 8971 and Instructions for Form 8971 are being updated based on the final regulations. Until the updated form is available, continue to use the current Form 8971 .