More time for filing statement on property acquired from estates

More time for filing statement on acquired property

The IRS today released an advance version of Notice 2016-19 that provides additional time—until March 31, 2016—for executors and others to file with the IRS, and furnish to the recipient of the property, a basis information statement as required under changes made to the Code this past summer.

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Notice 2016-19 [PDF 13 KB] includes a recommendation that executors and others required to file an estate tax return wait to prepare the basis reporting statements until Treasury and the IRS issue proposed regulations that will be provided “very shortly.” 

Background

A measure included in legislation enacted in late July 2015, known as the “highway bill,” requires consistent basis reporting of certain property by an estate and the person acquiring property from the decedent. The statute requires that qualifying estates filing returns after July 31, 2015, must provide a statement including basis information to the IRS and the beneficiaries within 30 days of the filing of the estate tax return or 30 days after the return was required to be filed.

In August 2015, the IRS issued Notice 2015-57 providing that statements required to be filed with the IRS and furnished to the beneficiary before February 29, 2016, would be delayed to February 29, 2016.  Today, Notice 2016-19 further delays the initial deadline.

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