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UHY LLP Michigan Practice
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Congress is requiring a new informational return to be filed with the IRS to ensure there is a consistent reporting of the basis of assets between the estate tax return and the beneficiary receiving the asset. The IRS has finalized the Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent. An executor or personal representative of an estate who filed a Form 706 (Estate and Generation -Skipping Transfer Tax Return) for a decedent, will be required to file Form 8971 with both the IRS and the beneficiaries of the estate. Form 8971 is only required for those estates where the total gross estate value exceeded the filing threshold requiring it to file a 706 return.
Form 8971 requires the executor to indicate who will receive the assets, including name address and Social Security number and also list the value of the assets as reported on the 706 return. There is a separate schedule to be completed for each beneficiary which lists out the assets they are to receive with similar information. This separate listing (Schedule A) is then to be given to the beneficiary so they know what their cost basis is for the assets they will receive from the estate.
The due date of the Form is the earlier of a) 30 days after filing the 706 return or b) 30 days after the date the Form 706 is required to be filed, including extensions. This return is required for estates that would have filed their 706 return after July 31, 2015 regardless of when the return was originally due. Since this Form was just released, the IRS is giving extra time until March 31, 2016 to file the Form for those estates that filed their 706 after July 31, 2015 and before March 1, 2016. If an estate tax return (Form 706) was filed before July 31, 2015, Form 8971 would not apply. There are significant penalties for non-filing of Form 8971.
Although the Congress's intentions are good (to inform the beneficiaries of their cost basis on inherited property), they have some inherent problems regarding the filing of this Form. First of all, the executor most likely doesn't know who will be receiving the assets within 30 days of filing the 706 return, other than specific bequests. Second, the values of the estate could change based on the review of the return by the IRS during its audit stage. Finally, the IRS is requiring a supplemental filing of the schedule A be completed whenever there is a change in the value as reported on the 706 return or when there is a change in the beneficiary who will receive a particular asset. This can create a large amount of additional administration time to administer the estate.
For more information or questions on this topic, please contact your professional at UHY LLP in Detroit 313 964 1040, Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040, or visit us on the web at www.uhy-us.com.
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EVENTS CALENDAR
2/23 NINTH ANNUAL D.M.G.C. TEXAS HOLD 'EM TOURNAMENT
We hope you can once again join us for a fun night of cards and networking for a great cause! This year's charity poker tournament will be held on Tuesday, February 23 at Star Lanes Royal Oak. Registration is at 6. Game starts promptly at 7.
$100 buy-in and $50 re-buy. VIP prizes for finalists. Chips have no cash value. Must be 18 to play and 21 to consume alcohol.
Contact Jessica Dalessandro to save your spot! Cash, check or credit card contributions accepted in advance or at the door. Sponsorship opportunities available. UHY Cares in cooperation with UHY LLP, the D.M.G.C. and the McCarty family hope to see you there!
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SPECIAL ANNOUNCEMENTS
FOLLOW UHY CARES ON SOCIAL MEDIA
Keep up with us on Facebook, Twitter and LinkedIn to see what our team is up to, and hear about our latest charitable giving initiatives, contests, photos, fundraising opportunities and more!
UHY LLP operates its charitable giving activities through UHY Cares, an independent nonprofit 501c3 organization. Cares, which was incorporated in 2008, was an idea inspired by employees and is volunteer based. Through UHY Cares, employees are able to give back to the community, including helping individuals going through personal emergencies or hardships. Cares has provided assistance to hundreds of charities and families and continues to grow this list every year.
UHY ADVISORS APPOINTS FIVE NEW MANAGING DIRECTORS, TWO FROM MICHIGAN PRACTICE
UHY Advisors announces the appointment of five new managing directors: Brad Baer, Harold Mohn, Robert Scope, Mehmet Sengulen and Aaron Witalec. Scope and Witalec are both from the Michigan practice. Click here to view full press release.
RECENT PROFESSIONAL AND CIVIC BOARD AND COMMITTEE APPOINTMENTS
Sachin Mehta, associate at UHY Advisors Corporate Finance, welcomed as newest board member of the Indo-American Chamber of Commerce
Scott Miller, partner of UHY LLP, appointed to the Ascension Michigan Market Finance Committee by the board of trustees
CAREERS AT UHY
Are you ready to take charge of your career path? Be sure to visit our careers page for the most up-to-date listings or contact Yolanda Rountree. Current opportunities in our Michigan offices include:
- Audit Manager, 7+ years of experience, manufacturing experience is highly preferred
- Audit Manager, 7+ years of experience, SEC experience is highly preferred
- Audit Senior Accountant, 5-7 years of experience, CPA required
- Internal Audit Risk & Compliance Manager, 7+ years of experience
- R&D Tax Specialist, 7+ years of experience
- Tax Manager, 7-10 years of experience
- Director of Litigation, testifying experience required municipalities
- Senior Associate (Corporate Finance), 2-4 years of Big 4 experience highly preferred
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Published by UHY LLP News.
Copyright � 2013 UHY LLP. All rights reserved.
Our firm provides the information in this newsletter as tax information and general business or economic information or analysis for educational purposes, and none of the information contained herein is intended to serve as a solicitation of any service or product. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of "UHY Advisors." UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. and UHY LLP are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. "UHY" is the brand name for the UHY international network. Any services described herein are provided by UHY Advisors and/or UHY LLP (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.
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