Preparing Form 8971 and Basis Consistency (Completed)

Date: Wednesday, June 24, 2020
Instructor: Klaralee R. Charlton
Begin Time:  12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC
2 hours Estate Planning for CFP

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.

Who Should Attend
Attorneys, CPAs, Enrolled Agents

Topics Covered

  • Review of Internal Revenue Code sections 1014 and 6035
  • Description of case law leading to the enactment of these two code sections
  • Overview of Form 8971 and when and how to file it
  • Analysis of the basis consistency rules and penalties for failing to comply
  • Examples of basis consistency documentation when Form 8971 is not required

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


Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites

Advance Preparation

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