IRS extends the due date for estate basis reporting.
Effective March 23, 2016, the Internal Revenue Service (IRS) published Notice 2016-27, once again extending the deadline for executors and other persons to complete and file Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent. The IRS now grants a further delay to June 30, 2016.
The Notice comes on the heels of the proposed regulations, issued by the IRS on March 4, 2016, that clarified and expanded upon the new basis reporting requirements imposed under Sections 1014(f) and 6035 of the Internal Revenue Code. In providing this extension, the IRS acknowledges that it has received numerous comments and requests from fiduciaries and their advisors that there has been insufficient time to understand the changes and gather information needed to accurately complete the new forms.
This extension will, therefore, provide the much needed time for fiduciaries, executors and other persons who are now required to file and/or report consistent value and basis for the property being received from a decedent to understand and adopt changes required by the proposed regulations.
Further information regarding Notice 2016-27 may be found at:
Article by: Crystal W. Roberts, Audit Manager