The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (enacted July 31, 2015) modified IRC § 1014 to require that property inherited from a decedent have the same basis as that reported for federal estate tax purposes. The law created IRC § 1014(f) and IRC § 6035. Section 6035 requires the executor of an estate required to file an estate tax return to also provide written statements to the IRS and to beneficiaries receiving inherited property.
The problem is, IRS has not issued regulations implementing these new requirements. In August, Notice 2015-57 delayed these statement requirements until February 29, 2016.
Today, in Notice 2016-19, IRS extended the date for compliance with the new consistent basis reporting requirements another month, until March 31, 2016.
Most important, in this Notice, IRS urges preparers wait to prepare the statements required by section 6035(a)(1) and (a)(2) until the issuance of proposed regulations by the Treasury Department and the IRS addressing the requirements of section 6035. “The Treasury Department and the IRS expect to issue proposed regulations under sections 1014(f) and 6035 very shortly.”
Stay tuned!