IRS Delays Basis Consistency Reporting Due Date (again)

The IRS issued Notice 2016-17 (a link to the Notice will be provided when available), effective March 23, 2016. The notice extends the initial filing deadline for the new Form 8971 to June 30, 2016.

As discussed in last month’s posts, Form 8971 implements basis reporting requirements enacted by Congress in 2015. According to Notice 2016-27, the delay is because “[t]he Treasury Department and the IRS have received numerous comments that executors and other persons have not had sufficient time to adopt the systemic changes that would enable the filing of an accurate and complete Form 8971 and Schedule A.”