81_FR_11474 81 FR 11431 - Consistent Basis Reporting Between Estate and Person Acquiring Property From Decedent

81 FR 11431 - Consistent Basis Reporting Between Estate and Person Acquiring Property From Decedent

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 43 (March 4, 2016)

Page Range11431-11432
FR Document2016-04716

This document contains temporary regulations that provide transition rules providing that executors and other persons required to file or furnish a statement under section 6035(a)(1) or (a)(2) before March 31, 2016, need not do so until March 31, 2016. These temporary regulations are applicable to executors and other persons who file after July 31, 2015, returns required by section 6018(a) or (b).

Federal Register, Volume 81 Issue 43 (Friday, March 4, 2016) 
[Federal Register Volume 81, Number 43 (Friday, March 4, 2016)]
[Rules and Regulations]
[Pages 11431-11432]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-04716]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9757]
RIN 1545-BM98


Consistent Basis Reporting Between Estate and Person Acquiring 
Property From Decedent

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary regulations.

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SUMMARY: This document contains temporary regulations that provide 
transition rules providing that executors and other persons required to 
file or furnish a statement under section 6035(a)(1) or (a)(2) before 
March 31, 2016, need not do so until March 31, 2016. These temporary 
regulations are applicable to executors and other persons who file 
after July 31, 2015, returns required by section 6018(a) or (b).

DATES: Effective date. These regulations are effective on March 4, 
2016.
    Applicability dates: For date of applicability, see Sec.  1.6035-
2T(b).

FOR FURTHER INFORMATION CONTACT: Theresa Melchiorre (202) 317-6859 (not 
a toll-free number).

Background

    On July 31, 2015, the President of the United States signed into 
law H.R. 3236, the Surface Transportation and Veterans Health Care 
Choice Improvement Act of 2015, Public Law 114-41, 129 Stat. 443 (Act). 
Section 2004 of the Act added new section 6035.
    Section 6035 imposes reporting requirements with regard to the 
value of property included in a decedent's gross estate for federal 
estate tax purposes. Section 6035(a)(1) provides that the executor of 
any estate required to file a return under section 6018(a) must 
furnish, both to the Secretary and to the person acquiring any interest 
in property included in the decedent's gross estate for federal estate 
tax purposes, 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(a)(2) provides that each other person required to file 
a return under section 6018(b) must furnish, both to the Secretary and 
to each person who holds a legal or beneficial interest in the property 
to which such return relates, a statement identifying the same 
information described in section 6035(a)(1).
    Section 6035(a)(3)(A) provides that each statement required to be 
furnished under section 6035 (a)(1) or (2) is to be furnished at such 
time as the Secretary may prescribe, but in no case at a time later 
than the earlier of (i) the date which is 30 days after the date on 
which the return under section 6018 was required to be filed (including 
extensions, if any) or (ii) the date which is 30 days after the date 
such return is filed.
    On August 21, 2015, the Treasury Department and the IRS issued 
Notice 2015-57, 2015-36 IRB 294. Notice 2015-57 delays until February 
29, 2016, the due date for any statements required by section 6035 that 
are due before that same date.
    On February 11, 2016, the Treasury Department and the IRS issued 
Notice 2016-19, 2016-09 IRB. That notice provides that executors or 
other persons required to file or furnish a statement under section 
6035(a)(1) or (a)(2) before March 31, 2016, need not do so until March 
31, 2016.

Explanation of Provisions

    These temporary regulations reiterate that executors or other 
persons required to file or furnish a statement under section 
6035(a)(1) or (a)(2) before March 31, 2016, need not do so until March 
31, 2016. The text of these temporary regulations also serves as the 
text of the proposed regulations under Sec.  1.6035-2 in the related 
notice of proposed rulemaking (REG-127923-15) in the Proposed Rules 
section of this issue of the Federal Register. These temporary 
regulations are issued within 18 months of the date of the enactment of 
the statutory provisions to which the temporary regulations relate and, 
as authorized by section 7805(b)(2), are effective/applicable to 
executors and other persons who file a return required by section 
6018(a) or (b) after July 31, 2015.

Statement of Availability of IRS Documents

    IRS Revenue Procedures, Revenue Rulings notices, notices and other 
guidance cited in this preamble are published in the Internal Revenue 
Bulletin (or Cumulative Bulletin) and are available from the 
Superintendent of Documents, U.S. Government Printing Office, 
Washington, DC 20402, or by visiting the IRS Web site at http://www.irs.gov.

Special Analyses

    Certain IRS regulations, including this one, are exempt from the 
requirements of Executive Order 12866, as supplemented and reaffirmed 
by Executive Order 13563. Therefore, a regulatory impact assessment is 
not required. In addition, section 553(b) of the Administrative 
Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations 
because they are excepted from the notice and comment requirements of 
section 553(b) and (c) of the Administrative Procedure Act under the 
interpretative rule and good cause exceptions provided by section 
553(b)(3)(A) and (B) of that Act. The Act included an immediate 
effective date, thus making the first required statements due 30 days 
after enactment. It is necessary to provide more time to provide the 
statements required by section 6035(a) to allow the Treasury Department 
and the IRS sufficient time to issue both substantive and procedural 
guidance on how to comply with the section 6035(a) requirement and to 
provide executors and other affected persons the opportunity to review 
this guidance before preparing the required statements. These 
regulations reiterate the relief in Notice 2016-19 and, because of the 
immediate need to provide relief, notice and public comment pursuant to 
5 U.S.C. 553(b) and (c) is impracticable, unnecessary, and contrary to 
the public interest. For the applicability of the Regulatory 
Flexibility Act (5 U.S.C. chapter 6), please refer to the Special 
Analyses section of the preamble to the cross-referenced notice of 
proposed rulemaking published in the Proposed Rules section in this 
issue of the Federal Register. Pursuant to section 7805(f) of the 
Internal Revenue Code (Code), these regulations have been submitted to 
the Chief Counsel for Advocacy of the Small Business Administration for 
comment on their impact on small business.

Drafting Information

    The principal author of these temporary regulations is Theresa 
Melchiorre, Office of the Associate Chief Counsel (Passthroughs and 
Special Industries). Other personnel from the Treasury Department and 
the IRS participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

[[Page 11432]]

Temporary Amendments to the Regulations

    Accordingly, 26 CFR part 1 is amended as follows:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 is amended by adding an 
entry in numerical order to read in part as follows:

    Authority:  26 U. S. C. 7805 * * *

* * * * *
    Section 1.6035-2T also issued under 26 U.S.C. 6035.
* * * * *

0
Par. 2. Section 1.6035-2T is added to read as follows:


Sec.  1.6035-2T  Transitional relief.

    (a) Statements due before March 31, 2016. Executors and other 
persons required to file or furnish a statement under section 
6035(a)(1) or (a)(2) before March 31, 2016, need not do so until March 
31, 2016.
    (b) Effective/applicability date. This section is effective/
applicable to executors and other persons who file a return required by 
section 6018(a) or (b) after July 31, 2015.

John Dalrymple,
Deputy Commissioner for Services and Enforcement,
    Approved: January 22, 2016.
Mark J. Mazur,
Assistant Secretary of Treasury (Tax Policy).
[FR Doc. 2016-04716 Filed 3-2-16; 4:15 pm]
 BILLING CODE 4830-01-P

Federal Register / Vol. 81, No. 43 / Friday, March 4, 2016 / Rules and Regulations 11431 Dated: March 2, 2016. Section 6035(a)(2) provides that each Office, Washington, DC 20402, or by Chuck Rosenberg, other person required to file a return visiting the IRS Web site at http:// Acting Administrator. under section 6018(b) must furnish, www.irs.gov. [FR Doc. 2016–05004 Filed 3–3–16; 8:45 am] both to the Secretary and to each person who holds a legal or beneficial interest Special Analyses BILLING CODE 4410–09–P in the property to which such return Certain IRS regulations, including this relates, a statement identifying the same one, are exempt from the requirements information described in section of Executive Order 12866, as DEPARTMENT OF THE TREASURY 6035(a)(1). supplemented and reaffirmed by Section 6035(a)(3)(A) provides that Internal Revenue Service Executive Order 13563. Therefore, a each statement required to be furnished regulatory impact assessment is not under section 6035 (a)(1) or (2) is to be 26 CFR Part 1 required. In addition, section 553(b) of furnished at such time as the Secretary [TD 9757] may prescribe, but in no case at a time the Administrative Procedure Act (5 later than the earlier of (i) the date U.S.C. chapter 5) does not apply to these RIN 1545–BM98 which is 30 days after the date on which regulations because they are excepted the return under section 6018 was from the notice and comment Consistent Basis Reporting Between requirements of section 553(b) and (c) of Estate and Person Acquiring Property required to be filed (including extensions, if any) or (ii) the date which the Administrative Procedure Act under From Decedent the interpretative rule and good cause is 30 days after the date such return is AGENCY: Internal Revenue Service (IRS), filed. exceptions provided by section Treasury. On August 21, 2015, the Treasury 553(b)(3)(A) and (B) of that Act. The Act Department and the IRS issued Notice included an immediate effective date, ACTION: Temporary regulations. 2015–57, 2015–36 IRB 294. Notice thus making the first required SUMMARY: This document contains 2015–57 delays until February 29, 2016, statements due 30 days after enactment. temporary regulations that provide the due date for any statements required It is necessary to provide more time to transition rules providing that executors by section 6035 that are due before that provide the statements required by and other persons required to file or same date. section 6035(a) to allow the Treasury furnish a statement under section On February 11, 2016, the Treasury Department and the IRS sufficient time 6035(a)(1) or (a)(2) before March 31, Department and the IRS issued Notice to issue both substantive and procedural 2016, need not do so until March 31, 2016–19, 2016–09 IRB. That notice guidance on how to comply with the 2016. These temporary regulations are provides that executors or other persons section 6035(a) requirement and to applicable to executors and other required to file or furnish a statement provide executors and other affected persons who file after July 31, 2015, under section 6035(a)(1) or (a)(2) before persons the opportunity to review this returns required by section 6018(a) or March 31, 2016, need not do so until guidance before preparing the required (b). March 31, 2016. statements. These regulations reiterate the relief in Notice 2016–19 and, DATES: Effective date. These regulations Explanation of Provisions because of the immediate need to are effective on March 4, 2016. These temporary regulations reiterate provide relief, notice and public Applicability dates: For date of that executors or other persons required comment pursuant to 5 U.S.C. 553(b) applicability, see § 1.6035–2T(b). to file or furnish a statement under and (c) is impracticable, unnecessary, FOR FURTHER INFORMATION CONTACT: section 6035(a)(1) or (a)(2) before March and contrary to the public interest. For Theresa Melchiorre (202) 317–6859 (not 31, 2016, need not do so until March 31, the applicability of the Regulatory a toll-free number). 2016. The text of these temporary Flexibility Act (5 U.S.C. chapter 6), Background regulations also serves as the text of the please refer to the Special Analyses proposed regulations under § 1.6035–2 section of the preamble to the cross- On July 31, 2015, the President of the in the related notice of proposed referenced notice of proposed United States signed into law H.R. 3236, rulemaking (REG–127923–15) in the rulemaking published in the Proposed the Surface Transportation and Proposed Rules section of this issue of Rules section in this issue of the Federal Veterans Health Care Choice the Federal Register. These temporary Register. Pursuant to section 7805(f) of Improvement Act of 2015, Public Law regulations are issued within 18 months the Internal Revenue Code (Code), these 114–41, 129 Stat. 443 (Act). Section of the date of the enactment of the regulations have been submitted to the 2004 of the Act added new section 6035. statutory provisions to which the Chief Counsel for Advocacy of the Small Section 6035 imposes reporting temporary regulations relate and, as Business Administration for comment requirements with regard to the value of authorized by section 7805(b)(2), are on their impact on small business. property included in a decedent’s gross effective/applicable to executors and estate for federal estate tax purposes. other persons who file a return required Drafting Information Section 6035(a)(1) provides that the by section 6018(a) or (b) after July 31, executor of any estate required to file a The principal author of these 2015. return under section 6018(a) must temporary regulations is Theresa furnish, both to the Secretary and to the Statement of Availability of IRS Melchiorre, Office of the Associate Chief person acquiring any interest in Documents Counsel (Passthroughs and Special jstallworth on DSK7TPTVN1PROD with RULES property included in the decedent’s IRS Revenue Procedures, Revenue Industries). Other personnel from the gross estate for federal estate tax Rulings notices, notices and other Treasury Department and the IRS purposes, a statement identifying the guidance cited in this preamble are participated in their development. value of each interest in such property published in the Internal Revenue List of Subjects in 26 CFR Part 1 as reported on such return and such Bulletin (or Cumulative Bulletin) and other information with respect to such are available from the Superintendent of Income taxes, Reporting and interest as the Secretary may prescribe. Documents, U.S. Government Printing recordkeeping requirements. VerDate Sep<11>2014 13:44 Mar 03, 2016 Jkt 238001 PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 E:\FR\FM\04MRR1.SGM 04MRR1

11432 Federal Register / Vol. 81, No. 43 / Friday, March 4, 2016 / Rules and Regulations Temporary Amendments to the of the Chief Counsel, Department of the Bureau certifies that this final rule will Regulations Treasury, Bureau of Engraving and not have a significant economic impact Accordingly, 26 CFR part 1 is Printing, by phone at (202) 874–2500. on a substantial number of small entities amended as follows: SUPPLEMENTARY INFORMATION: because this final rule primarily affects individuals accessing BEP property and I. Background is not likely to affect any small PART 1—INCOME TAXES The mission of the Bureau of businesses. ■ Paragraph 1. The authority citation Engraving and Printing is to develop and produce United States currency III. Unfunded Mandates Reform Act of for part 1 is amended by adding an entry notes, trusted worldwide. BEP prints 1995 in numerical order to read in part as follows: billions of dollars in currency—referred The Bureau certifies that no actions Authority: 26 U. S. C. 7805 * * * to as Federal Reserve notes—each year were deemed necessary under the for delivery to the Federal Reserve Unfunded Mandates Reform Act of * * * * * System. Due to the sensitive nature of 1995. Furthermore, this final rule will Section 1.6035–2T also issued under 26 currency production operations, the not result in the expenditure by State, U.S.C. 6035. Bureau is generally closed to the public. local, and tribal governments, in the * * * * * Limited areas of the Bureau, however, aggregate, or by the private sector, of ■ Par. 2. Section 1.6035–2T is added to are accessible for public tours during $100,000,000 or more in any one year, read as follows: certain authorized dates and times. Any and will not significantly or uniquely individual entering, exiting, or on the affect small governments. § 1.6035–2T Transitional relief. Bureau’s property is subject to the rules of conduct as prescribed within the IV. Regulatory Planning and Review (a) Statements due before March 31, regulations, and violations may result in (Executive Orders 12866 and 13563) 2016. Executors and other persons required to file or furnish a statement criminal prosecution. The BEP has a This final rule is not a significant under section 6035(a)(1) or (a)(2) before high degree of security due to producing regulatory action as defined in March 31, 2016, need not do so until United States currency notes, and Executive Order 12866. Executive Order March 31, 2016. individuals entering, exiting, and on the 13563 calls for public participation and (b) Effective/applicability date. This property are placed on notice that they an open exchange of ideas in the section is effective/applicable to are subject to search and inspection of regulatory process and seeks regulations executors and other persons who file a their person, personal items and that are accessible, consistent, written in return required by section 6018(a) or (b) property while entering, exiting, and on plain language, and easy to understand. after July 31, 2015. the property. The Bureau has developed this final This final rule updates the Bureau’s rule in a manner consistent with these John Dalrymple, 1994 (59 FR 41978) regulations that principles. Deputy Commissioner for Services and concern conduct on BEP property. The Enforcement, final rule removes certain obsolete List of Subjects in 31 CFR Part 605 Approved: January 22, 2016. language, clarifies the rules of conduct Federal buildings and facilities. Mark J. Mazur, on the property, and increases the For the reasons stated in the Assistant Secretary of Treasury (Tax Policy). maximum penalty amount permitted for preamble, the Bureau of Engraving and [FR Doc. 2016–04716 Filed 3–2–16; 4:15 pm] violations to $5,000 in accordance with Printing amends 31 CFR part 605 to read BILLING CODE 4830–01–P 18 U.S.C. 3571. The final rule also omits as follows: the term Special as used in the previous regulations when referring to the BEP PART 605—REGULATIONS DEPARTMENT OF THE TREASURY Police. The term Special was GOVERNING CONDUCT IN BUREAU unnecessary and could lead to potential OF ENGRAVING AND PRINTING Bureau of Engraving and Printing confusion. This change has no effect on BUILDINGS AND ON THE GROUNDS the legal authority and jurisdiction of OF WASHINGTON, DC AND FORT 31 CFR Part 605 the BEP Police. The rights and WORTH, TEXAS responsibilities of the BEP Police Conduct on Bureau of Engraving and remain unchanged. ■ 1. The authority citation for part 605 Printing Property The notice of proposed rulemaking continues to read as follows: was published on December 10, 2015, Authority: 5 U.S.C. 301; Delegation, AGENCY: Bureau of Engraving and and provided a 60-day comment period, Administrator, General Services, dated Printing, Treasury. which ended on February 8, 2016. No December 3, 1992; Treasury Delegation, ACTION: Final rule. comments were received. Based on the Assistant Secretary (Management), dated rationale set forth in the SUPPLEMENTARY February 4, 1993. SUMMARY: The Department of the INFORMATION to the notice of proposed ■ 2. Revise § 605.1 to read as follows: Treasury, Bureau of Engraving and Printing (BEP or Bureau) is amending its rulemaking and in this final rule, the BEP is adopting the proposed rule as a § 605.1 Conduct on Bureau of Engraving regulations in order to remove certain and Printing property. obsolete language, clarify the rules of final rule with the slight modifications of adding the words ‘‘search or’’ before (a) Applicability. These regulations conduct on the property, and increase apply to the buildings and grounds of the maximum penalty amount permitted the word ‘‘inspection’’ in paragraphs jstallworth on DSK7TPTVN1PROD with RULES (b)(6), (b)(7), and (b)(8) to ensure clarity the Bureau of Engraving and Printing for violations to $5,000 in accordance (BEP) located in Washington, DC, at with the United States Code. and consistency between related provisions. 14th and C Streets SW., and in Fort DATES: This regulation is effective April Worth, Texas, at 9000 Blue Mound 4, 2016. II. Regulatory Flexibility Act Road, and to all persons entering on FOR FURTHER INFORMATION CONTACT: In accordance with the Regulatory such property. Unless otherwise stated, Mark Hoggan, Attorney-Advisor, Office Flexibility Act (5 U.S.C 601 et seq.), the BEP buildings and grounds are referred VerDate Sep<11>2014 15:59 Mar 03, 2016 Jkt 238001 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 E:\FR\FM\04MRR1.SGM 04MRR1


Document Created: 2018-02-02 15:05:51
Document Modified: 2018-02-02 15:05:51
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionTemporary regulations.
DatesEffective date. These regulations are effective on March 4, 2016.
ContactTheresa Melchiorre (202) 317-6859 (not a toll-free number).
FR Citation81 FR 11431 
RIN Number1545-BM98
CFR AssociatedIncome Taxes and Reporting and Recordkeeping Requirements
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