New reporting requirements for estates subject to the estate tax were supposed to go into effect in August. That means many millions of tax dollars pouring into the nation's treasury. However, the IRS was not ready and has officially postponed it's own reporting 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. You can learn more about this topic as well as other strategies on our website under the tab entitled: estate planning in Virginia. Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning. However, proper estate planning is not a do-it-yourself project. Why not call us for a complimentary consultation at 757-259-0707.
Reference: Mondaq.com (September 8, 2015) “IRS Postpones New Requirements For Estates To Report Asset Values.”