*To enlighten as to how Congress has mandated basis consistency in a broad variety of contexts, including how the 3 year period of limitations for tax assessment may be extended to 6 years, as well as basis of assets inherited by beneficiaries *To explore the timing and detail of new IRS Form 8971
Breaking News!! During tax season, IRS planted a couple of nuclear bombs in its newly issued Form 8971 Basis Consistency Regulations:
1. IRS' all new ZERO BASIS rule: If tax matters are mishandled at the estate level, the beneficiary's basis (for income tax purposes) in an inherited asset is ZERO!!
2. SUBSEQUENT TRANSFER rule: Any later transfer by a beneficiary (of an asset originally subject to Form 8971 reporting) itself must be reported on a newly generated Form 8971 (and related Schedule A).
IRS Form 8971 (and its Schedule A) is the controversial brand new form an estate must complete to report basis of inherited assets to IRS (and beneficiaries). There's a whole lot more to it than meets the eye for income and estate tax professionals.
**This course is approved by the IRS. The submission of a completed request form, found under the materials tab, is required for credit. Please send completed form to [email protected].