Just last week, we posted a brief article outlining new statutory requirements reporting tax bases related to inherited property included on an estate tax return. The new rules were mandated by the Highway Act (H.R. 3236) and were noted in the blog as being effective immediately at the date the law was signed by President Obama (July 31, 2015).
On August 24, 2015, the Internal Revenue Service announced a delayed due date for providing required basis information of inherited assets to the Internal Revenue Service and to the beneficiaries of taxable estates. As noted above, these reporting rules were signed into law as part of the Highway Act and apply to executors of estates of decedents who are required under Internal Revenue Code Section 6018(a) or (b) to file an estate tax return (Form 706).
The rules are intended to create a consistent basis reporting between estates and those acquiring property via inheritance from a decedent. The original reporting requirements were effective for any Form 706 filed after the date the bill was signed into law, July 31, 2015.
Under the new law, these information returns must be furnished to the Internal Revenue Service and beneficiaries 30 days after the Form 706 is due (including extensions), or if filed earlier, 30 days after the Form 706 is filed.
The current announcement, set out in Notice 2015-57, 2015-36 changes that requirement for each return otherwise due before February 29, 2016. In that case, the due date is February 29, 2016. This delay was deemed necessary to allow the Treasury Department and the Internal Revenue Service adequate time to issue additional guidance on complying with these new reporting rules.
Questions can be sent to Bob Grossman or Rick Dynoske at 412-338-9309.
