AICPA Calls on IRS and Treasury for Additional Guidance on Estate Basis Reporting

February 1, 2016

Washington, D.C. (Feb. 1, 2016) – The American Institute of CPAs (AICPA) has called on the Internal Revenue Service (IRS) and U.S. Department of the Treasury to issue additional guidance in order to ensure consistent basis reporting between estates and persons acquiring property from a decedent.  

The recommendations in the AICPA's Jan. 29 letter would expand the guidance provided by the IRS in Notice 2015-57, which was issued to implement Section 2004 of P.L 114-41, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015.

  • Provide penalty relief if the executor acts in good faith and to provide reasonable cause penalty relief;

  • Clarify the time period (if any) that the executor has continuing responsibilities after providing the original statement;

  • Treat trusts as the beneficiary;

  • Provide a de minimis exemption to the information reporting rules for assets or groups of assets that are not publicly-traded and are of de minimis value, such as $3,000; and

  • Provide guidance and clarifications on other issues.