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.