Certain private delivery services designated by the IRS may be used to meet the “timely mailing as timely filing” rule for tax returns. These private delivery services include only the following.

For the IRS mailing address to use if you are using a private delivery service, go to IRS.gov and enter “private delivery service” in the search box.

The private delivery service can tell you how to get written proof of the mailing date.

If the executor of an estate or other person required to file Form 8971 fails to file a correct Form 8971 and/or Schedule A with the IRS by the due date and reasonable cause isn't shown, a penalty may be imposed. The penalty applies if there is a failure to file timely, a failure to include all information required to be shown on the form or schedule, a failure to include correct information on the form or schedule, or a failure to file a correct supplemental Form 8971 and/or Schedule A by the due date. A complete Form 8971 includes all Schedule(s) A.

Only one penalty will apply for all failures relating to a single filing of a single Form 8971 and the Schedule(s) A required to be filed along with it. Each filing of a Form 8971 with Schedule(s) A is a separate filing, regardless as to whether the filing is of the initial Form 8971 and Schedule(s) A or a supplemental Form 8971 and Schedule(s) A.

The amount of the penalty depends on when the correct Form 8971 with Schedule(s) A is filed.

The penalty is as follows.

All penalty amounts shown are subject to adjustment for inflation.

You qualify for lower maximum penalties if your average annual gross receipts for the 3 most recent tax years (or for the period you were in existence, if shorter) ending before the calendar year in which the information returns were due are $5 million or less.

If any failure to file a correct Form 8971 or Schedule A is due to intentional disregard of the requirements to file a correct Form 8971 and Schedule(s) A, the minimum penalty is at least $530 per Form 8971 and the Schedule(s) A required to be filed with it, with no maximum penalty.

An inconsequential error or omission isn't considered a failure to include correct information. An inconsequential error or omission doesn't prevent or hinder the IRS from processing the Form 8971 and the Schedule(s) A required to be filed along with it. Errors and omissions that are never inconsequential are those related to a TIN, a beneficiary's surname, and the value of the asset the beneficiary is receiving from the estate.

If the executor of an estate or other person required to file Form 8971 fails to provide a correct Schedule A to a beneficiary and doesn't show reasonable cause, a penalty may be imposed. The penalty applies if there is a failure to provide the Schedule A by the due date, a failure to include all information required to be shown on the schedule, a failure to include correct information on the schedule, or a failure to provide a correct supplemental Schedule A by the due date. The penalty applies for each Schedule A required to be provided.

The amount of the penalty depends on when a correct Schedule A is provided.

The penalty is as follows.

All penalty amounts shown are subject to adjustment for inflation.

You qualify for lower maximum penalties if your average annual gross receipts for the 3 most recent tax years (or for the period you were in existence, if shorter) ending before the calendar year in which the information returns were due are $5 million or less.

If any failure to provide a correct Schedule A is due to intentional disregard of the requirements to provide correct Schedules A, the penalty is at least $530 per Schedule A with no maximum penalty.

An inconsequential error or omission isn't considered a failure to include correct information. An inconsequential error or omission can’t reasonably be expected to prevent or hinder the beneficiary from timely receiving correct information and using the information to report basis on the beneficiary’s own return. Errors and omissions that are never inconsequential are those related to (a) the value of the asset the beneficiary is receiving from the estate, and (b) a significant item in a beneficiary's address.

The penalties for failing to file correct Form 8971 and Schedules A with the IRS and for failing to provide correct Schedules A to beneficiaries won't apply to any failure that is shown to be due to reasonable cause and not to willful neglect. In general, it must be shown that the failure was due to an event beyond the taxpayer’s control or due to significant mitigating factors. It must also be shown that the executor or other person required to file acted in a responsible manner and took steps to avoid the failure.

Enter the SSN of the decedent. If the decedent didn't have an SSN, the executor (or other person required to file Form 706) should obtain one for the decedent by filing Form SS-5, Application for a Social Security Card. You can get Form SS-5 online at www.socialsecurity.gov or by calling the SSA at 1-800-772-1213.

If there is more than one executor, enter the name of one executor and see the instructions for line 8.

Provide only the TIN of the executor listed on line 4 and see the instructions for line 8.

Provide only the address of the executor listed on line 4. Use Form 8822, Change of Address, to report a change of the executor’s address. Also, see the instructions for line 8.

Check the box and attach a statement with the name, address, telephone number, and TIN of each executor (if any) other than the one named on line 4.

If the executor made an election on the estate tax return to use alternate valuation under section 2032, provide the alternate valuation date.

Enter the name of each individual, trust, or other estate that acquired (or is expected to acquire) property from the estate. Retain a copy of the Form 8971 (including all attached Schedule(s) A) for the estate’s records.

Enter the TIN of each beneficiary listed. If the executor of the estate solicited a beneficiary's TIN in writing and hasn’t received it, enter "requested" and attach a copy of the solicitation to Form 8971 to avoid inquiries from the IRS. A supplemental Form 8971 and corresponding Schedule A must be filed with the IRS once the TIN has been obtained.

For each beneficiary, enter the date on which the executor gave Schedule A to the beneficiary. See Where To File, earlier.

Permission to discuss the Form 8971 is limited to the information reported on (or required to be reported on) the Form 8971 and attached Schedule(s) A and doesn't authorize the return preparer to represent the estate before the IRS or to enter into any agreements with the IRS regarding the Form 8971 and attached Schedule(s) A.

Complete and attach Form 2848, Power of Attorney and Declaration of Representative, if the executor would like the return preparer to represent the estate before the IRS with respect to the Form 8971 and Schedule(s) A or any other matter related to the estate. Completing Form 2848 may authorize the person designated on that form to sign agreements, consents, waivers, or other documents.

Anyone who is paid to prepare the Form 8971 and/or any Schedule A must sign the form as a paid preparer and give a copy of the completed Form 8971 and/or Schedule(s) A to the executor required to file Form 706 or Form 706-NA.

Number the items received by the beneficiary. Continue this numbering on page A-2 of the Schedule A—Continuation Sheet (if necessary).

Use the same description in column B that the executor used for the property on the Form 706 or Form 706-NA. Include in column B the schedule and item number where the property was reported on Form 706 or Form 706-NA, as applicable.

If the beneficiary acquired (or is expected to acquire) a joint interest, fractional interest, or any other interest in property which is less than 100% of the interest reported on the estate tax return, indicate the interest in the property the beneficiary will acquire.

Listings of bulk assets may be attached to Schedule A in lieu of a detailed description of each item that has been acquired (or is expected to be acquired) by a beneficiary. The listing should consist of a related property (for example, stocks held in a single brokerage account) and only include information relevant to basis reporting such as name/description of the property, value, and valuation date. Do not attach property appraisals to Schedule A.

For more information on details to be included by asset type or schedule, see the Instructions for Form 706 or Form 706-NA.

An entry (Y or N) is required in this column for each asset. Indicate "Y" only if estate tax was generated and the asset contributed to the estate tax (for example, the asset wasn't subject to a marital or charitable deduction).

Generally, any property that qualifies for a marital deduction under section 2056 or 2056A or a charitable deduction under section 2055 won't generate estate tax and "N" should be indicated.

Generally, the valuation date of property will be the decedent’s date of death. If the estate elected to use an alternate valuation date, list the value of the property on the alternate valuation date. See section 2032 for additional guidance.

List the value reported on Form 706 or Form 706-NA. The value reported in column E should be the fair market value as of the decedent's date of death or any alternate valuation date used for the estate tax return. This value shouldn’t reflect any post-death adjustment in value. The full fair market value of the property acquired (or expected to be acquired) by the beneficiary is to be reported in column E. This value shouldn’t factor in mortgages, non-recourse indebtedness, or other decreases in equity.

For partial interests of property, (including life estates and usufructs) the value reported should reflect the proportional value of the partial interest for each beneficiary. For example, an estate has property valued on the Form 706 at $400,000. The property is being distributed to Beneficiary 1, receiving a 75% interest in the property, and Beneficiary 2, receiving a 25% interest in the property. Schedule A, Part II, column E should reflect $300,000 on the Schedule A for Beneficiary 1 and $100,000 on the Schedule A for Beneficiary 2. If the value reported on a Schedule A that has already been filed with the IRS or provided to a beneficiary changes (as a result of the resolution of a valuation issue or otherwise), you must file a supplemental Form 8971 and associated Schedule(s) A with the IRS and provide an updated Schedule A to each affected beneficiary no later than 30 days after the adjustment.