NAPLES: 239-262-1040 | MARCO ISLAND: 239-394-7502
IRS Delays Basis Consistency Reporting for Inherited Assets
Posted by Christian Wynns on February 16th, 2016
The IRS has again delayed the due date for providing required basis information of inherited assets to the IRS and beneficiaries of taxable estates, this time until 3/31/16.
The reporting requirements were signed into law on 7/31/15 as part of the Highway Act and are effective for Form 706 filed after 7/31/15. Under the law, these statements must be furnished to the IRS and beneficiaries 30 days after the Form 706 is filed or, if earlier, 30 days after the Form 706 is due (including extensions). However, Notice 2015-71, delayed the due date to 2/29/16 for statements otherwise due before then. Now, the due date is further delayed to 3/31/16 for statements otherwise due before 3/31/16.
Furthermore, the IRS says it expects to issue proposed regulations on the reporting very shortly and executors should until then wait to prepare the statements. Notice 2016-19, 2016-9 IRB.
Copyright © 2016 Thomson Reuters/PPC. All rights reserved.