Notice 2016-27: Extension of time for basis reporting by estates

Extension of time for basis reporting by estates

The IRS today released an advance version of Notice 2016-27 providing additional time for basis reporting by estates. Under regulations issued earlier this month, the earliest time for furnishing and filing a statement under section 6035 was established as March 31, 2016. Today’s notice provides that executors and other persons required to file or furnish a statement under section 6035 before June 30, 2016, need not do so until June 30, 2016.

Related content

Read Notice 2016-27 [PDF 16 KB] 

Extension of time

Temporary and proposed regulations released in early March 2016 set forth rules for statements required to be filed under section 6035(a)(1) or (a)(2) before March 31, 2016. The regulations provided transition relief to executors and other persons required to furnish a statement under section 6035, by providing that executors and other persons who filed a Form 706 after July 31, 2015, and who would be required to file a statement prior to March 31, 2016, need not do so until March 31, 2016. Read TaxNewsFlash-United States

Notice 2016-27 explains that the IRS and Treasury Department received “numerous comments” that executors and other persons have not had sufficient time to adopt the systemic changes that would enable the filing of an accurate and complete Form 8971 and Schedule A (the basis reporting forms). Today’s IRS notice provides that statements required under sections 6035(a)(1) and (a)(2) to be filed with the IRS or furnished to a beneficiary before June 30, 2016, need not be filed with the IRS and furnished to a beneficiary until June 30, 2016.  This guidance is effective March 23, 2016.

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform