As part of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, signed into law by President Obama on July 31, 2015, Sections 1014(f) and 6035 were enacted.

Section 1014(f) provides rules requiring that the basis of certain property acquired from a decedent may not exceed the basis of that property as finally determined for federal estate tax purposes, or, if not finally determined, as reported on a statement made under section 6035.

Section 6035 imposes new reporting requirements  for the executor of an estate of a decedent where a federal estate tax return is required to be filed.  The executor must furnish, to both the IRS and to each person who holds a legal or beneficial interest in the property listed on the estate tax return,  a statement “identifying the value of each interest in such property  as reported on such return and such other information with respect to such interest as the Secretary may prescribe.”

Section 6035 requires that such statements must be furnished no later than the earlier of (1) the date which is 30 days after the date on which the federal estate tax return was required to be filed (including extensions, if any) or (2) the date which is 30 days after the date such return is filed.

In August 2015, the Internal Revenue Service  released Notice 2015-57, which delayed the due date for filing that statement until February 29, 2016, giving the Treasury Department and the IRS time to prepare the necessary guidance implementing the new reporting requirements.

Last week, the Internal Revenue Service  released new Notice 2016-19, which further delays the due date for filing that statement until March 31, 2016.  The Notice includes the  recommendation from the Treasury Department and the IRS that “executors and other persons required to file a return under section 6018 wait to prepare the statements required by section 6035(a)(1) and (a)(2) until the issuance of proposed regulations by the Treasury Department and the IRS addressing the requirements of section 6035.  The Treasury Department and the IRS expect to issue proposed regulations under sections 1014(f) and 6035 very shortly."