Inherited Property Reporting Now Extended to February 29, 2016

Your Guide to State, Local, Federal, Estate + International Taxation

Under the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 which was signed into law on July 31, 2015, the executor of an estate required to file an estate tax return under Code Sec. 6018(a) or (b) must provide a statement identifying the value of the property reported on the estate tax return to the IRS and to the person acquiring an interest in the property.

The crazy thing about this Act is that at the time it was signed, the due date for this reporting was 30 days after the estate tax return was filed, beginning with returns filed on or after August 1, 2015. This meant that practitioners were scrambling to try to figure out how to comply with the Act since there were neither procedures nor forms ready for this filing.

Relief arrived in Notice 2015-57 issued on August 21, 2015 which delays the inherited property reporting until February 29, 2016 for estate tax returns (required under Code Sec 6018(a) or (b)) and filed after July 31, 2015. The delay allows the Treasury Department and the IRS time to issue guidance to implement the reporting requirements. So stay tuned and be ready to prepare the new statement for estate tax returns filed after July 31, 2015 that meets these new reporting requirements under Code Sec. 6035.

By Pamela Wheeler, EA