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.
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.”
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.
© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. 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.