IRS Delays Deadline for Inheritance Reporting

James_J__Hill_House

James J. Hill House, a U.S. National Historic Landmark in Saint Paul, Minn., built in 1891.

The IRS just extended the deadline for its new reporting requirements for inherited assets.

This extended deadline, says the IRS in a notice issued August 21, 2015 (Notice 2015-57, 2015-36), was deemed necessary to allow adequate time to issue additional guidance for compliance. The new due date has been changed to Feb. 29, 2016.

These reporting requirements were signed into effect by President Obama as part of the Highway Act (H.R. 3236) on July 31, 2015. This was included as part of several important tax law changes that were tacked on to the highway funding bill (See the earlier blog for more information on the bill and its tax-related changes.)

The act outlines a requirement that anyone inheriting property cannot treat the property as having a higher basis than what is reported by the estate for estate tax purposes. Executors of estates are required to furnish information returns to the IRS and payee statements to any person acquiring property from the estate. These statements will identify the value of each interest in property acquired from the estate as reported on the estate tax return.

The newest extension applies to executors of the estates of decedents and to other persons who are required under section 6018(a) or (b) to file a return if that return is filed after July 31, 2015.

For statements required under sections 6035(a)(1) and (a)(2) to be filed with the IRS or furnished to a beneficiary before Feb. 29, 2016, the due date under section 6035(a)(3) is delayed to Feb. 29, 2016.

According to the IRS extension notice, executors and other persons required to file or furnish a statement under section 6035(a)(1) or (a)(2) should not do so until the issuance of forms or further guidance by the Treasury Department and the IRS addressing the requirements of section 6035.

Photo by Teemu008 (Flickr: James J. Hill House) [CC
BY-SA 2.0], via Wikimedia Commons

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About Brady Ramsay

Brady is the owner of Ramsay & Associates. He specializes in financial statement preparation and personal, fiduciary and corporate tax and accounting. His professional experience includes seven years' experience for local and national CPA firms before joining Ramsay & Associates in 2006. He has a Bachelor of Accounting degree from the University of Minnesota Duluth. He is a Certified Public Accountant, a member of the Minnesota Society of CPA's, an Eagle Scout, as well as an active volunteer in the community.