By Macy Irvin, Tax Associate and Christopher Budd, CPA, Tax Manager
On July 31, 2015, the Highway Act created new reporting rules for estate executors regarding the requirement to report the basis information of inherited assets to the IRS and beneficiaries of taxable estates. The new reporting requirements are effective for Forms 706 filed after July 31, 2015. Under the Highway Act, the basis information must be submitted to the IRS and beneficiaries the earlier of 30 days after Form 706 is filed or 30 days after Form 706 is due.
On August 24, 2015 the IRS announced a delayed due date for estate executors reporting basis information to the IRS. If a Form 706 is due before February 29, 2016, then estate executors have until February 29, 2016 to report basis information to the IRS.
This delay allows the Treasury Department and the IRS time to issue guidance for complying with the new reporting rules.