Regulations: Basis reporting by estates, transition relief

Basis reporting by estates, transition relief

The Treasury Department and IRS today released for publication in the Federal Register temporary regulations (T.D. 9757) and by cross-reference, proposed regulations (REG-127923-15) that set forth transition rules for statements required to be filed under section 6035(a)(1) or (a)(2) before March 31, 2016, and proposed regulations regarding basis reporting and consistency under section 1014(f).

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The regulations were released late today. Accordingly, text of the regulations is simply provided below.

  • The temporary regulations [PDF 198 KB] provide transition relief to executors and other persons required to furnish a statement under section 6035.  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.
  • The proposed regulations [PDF 252 KB] provide guidance and direction to executors and other persons regarding the necessity, timing, and manner of reporting asset basis to certain beneficiaries.  These proposed regulations also affect beneficiaries who acquire certain property from these estates, and subsequent transferees to whom beneficiaries transfer the property in transactions that do not result in the recognition of gain or loss for federal income tax purposes.

The regulations are effective on March 4, 2016 (their scheduled date of publication in the Federal Register).

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