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IRS Delays Basis Reporting Due Date for Estates

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Aug 25th 2015
Staff Writer and Editor AccountingWEB
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The IRS has postponed until early 2016 the due date for filing statements reporting the value of property included in a decedent's gross estate for federal tax purposes.

A bill signed by President Obama on July 31 that extended the Highway Trust Fund for an additional three months also enacted sections 1014(f) and 6035 of the Internal Revenue Code.

According to Notice 2015-57, which was issued by the IRS on Aug. 21, Section 1014(f) provides rules requiring that the income tax basis of certain property acquired from a decedent, as determined under Section 1014, “may not exceed the value of that property as finally determined for federal estate tax purposes, or if not finally determined, the value of that property as reported on a statement made under Section 6035.”

These new rules require executors of taxable estates to file additional information returns that provide information related to the value of inherited property, as reported on the estate tax return, to both the IRS and the recipient of the property, according to an Aug. 21 Tax Alert from McGladrey LLP.

“This new provision requires that executors file such information returns within 30 days of the filing date of the estate tax return, and applied this requirement to all executors filing returns after the date of enactment,” Nick Passini, manager of McGladrey Washington National Tax, wrote in the Tax Alert. “As the law was enacted on July 31, 2015, and the 30-day deadline is based upon the earlier of the date of filing or the extended due date, executors who filed estate tax returns on Aug. 1, 2015, are the first to be subject to this rule and would have been required to submit these new information returns on or before Sept. 2, 2015.”

However, Notice 2015-57 delays these reporting requirements until Feb. 29, 2016. This delay allows the US Treasury Department and the IRS to issue additional guidance to assist taxpayers with complying with sections 1014(f) and 6035.

“Executors and other persons required to file or furnish a statement under Section 6035(a)(1) or (a)(2) should not do so until the issuance of forms or further guidance by the Treasury Department and the IRS addressing the requirements of Section 6035,” the notice states.

This extended due date will apply to executors filing estate returns (or estates with required filing dates) between Aug. 1, 2015, and Jan. 30, 2016, Passini wrote.

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