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Estate Tax

t1larg.obama.food.whOn July 31, 2015 President Obama signed into law a requirement that an estate fiduciary [ie; Trustee or Executor] report the estate tax value of the property being received by the beneficiary to both the IRS and the beneficiary receiving the property.
                                                                                                                                                             These beneficiaries must treat their tax basis in property received from an estate that paid an estate tax consistently with the estate tax return value. In other words, the tax basis reported on the beneficiaries tax return must match that which was reported by the fiduciary on the Estate/Trust tax return.
                                                                                                                                                            Although this has always been the rule, this new law will give the IRS more teeth to enforce the law.  “I didn’t know” is eliminated as a defense to interest and penalties.