Dear Clients, 
The American Institute of Certified Public Accountants (AICPA) has urged Congress to modify the reporting deadline for estate basis statements.
 
AICPA is proposing a reporting deadline of February 15 following the end of the calendar year in which an estate distributes assets to a beneficiary, rather than 30 days after an estate files the federal estate tax return as is currently required.
 
Adopting the AICPA’s proposed change would “streamline the process and make the reporting more accurate and useful” to the beneficiaries and the Internal Revenue Service (IRS), Troy K. Lewis, the Chair of the AICPA Tax Executive Committee, wrote in a letter addressed to the chairmen and ranking members of the Congressional tax-writing committees.
 
“For many estates, the executor does not know within thirty days after filing the estate tax return which beneficiary will receive what asset. In fact, it is customary that many, if not most, executors do not fully distribute estate assets until after they have received the IRS closing letter to ensure that there are sufficient funds in the estate to meet its federal and state tax obligations,” Lewis wrote.
 
Lewis’s letter stated the AICPA’s proposal would:
 

• . Continue the reporting of estate basis to beneficiaries and the IRS;
• . Maintain the intent of the provision;
• . Simplify and improve the administrative process;
• . Result in more accurate reporting; and
• . Provide more meaning to the information provided by the executor to beneficiaries.

Should you require any further clarification, please do not hesitate to contact us at:
info@cardwell-capital.com

Kind Regards
Cardwell Advisory Desk