Delay in New Basis Reporting for Inherited Assets

Posted on 11.17.15

Delay in New Basis Reporting for Inherited Assets

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.

The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.