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.
Read Notice 2016-27 [PDF 16 KB]
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.
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