[Federal Register Volume 81, Number 43 (Friday, March 4, 2016)]
[Rules and Regulations]
[Pages 11431-11432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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