New reporting requirements for estates subject to the estate tax were supposed to go into effect in August. However, the IRS was not ready at that time and has officially postponed the new requirements.
A law was recently enacted that required estates to report the value of the estate within 30 days of filing an estate tax form with the IRS. This law was intended to affect any estates that filed Form 706 after July 31, 2015.
However, the IRS never issued any implementing regulations for the law. As a result, the IRS has recently announced that the requirements will be postponed until February 29, 2016. Mondaq.com reported this development in an article titled “IRS Postpones New Requirements For Estates To Report Asset Values.”
This does not mean that estate administrators should do anything different than they were already planning to do. It is still important to get proper valuations of estate assets as they will have to be reported for estate tax purposes.
The IRS will eventually implement regulations for the new rules and estate administrators should be ready to file at that time. On the upside, the postponement may give some administrators a little more breathing room.
Remember that it is important to speak with the estate’s attorney about all matters concerning the estate tax and proper valuation of estate assets.
Reference: Mondaq.com (September 8, 2015) “IRS Postpones New Requirements For Estates To Report Asset Values.”