Now, however, the IRS is basically admitting that the form that it released is extremely flawed. The form is now being redrafted/clarified so that estate tax preparers will now have a reasonable idea of what needs to be done to prepare an accurate 8971.
In order to do this and realizing that the filing date was already past, the IRS extended the filing dates for forms 8971 on all estate tax returns filed after July, 2015, to June 30, 2016. Hopefully this will give the IRS the opportunity to draft a form that is comprehensible, free of errors, and relatively easy to file. It is not often that IRS admits that it's products are flawed; this change of date and redrafting of instructions is a tacit admission that the IRS tried to push this form onto the tax preparation world before the form was ready.
Once we see the new manifestation of the form plus instructions which should be out at some point in June, we will have a better idea the IRS accomplished its task.
Robert S. Blumenfeld - Mr. Blumenfeld concentrates his practice in the areas of International Tax and Estate Planning, Probate Law, and Representation of Resident and Non-Resident Aliens before the IRS.
Prior to joining Marini & Associates, P.A., he spent 32 years as the Senior Attorney with the Internal Revenue Service (IRS), Office of Deputy Commissioner, International.
Read more at: Tax Times blog
