All New Basis Consistency Regulations and IRS Form 8971

$25.00 each

Course ID: CPE Credits: Field of Study: Author:
BB-301.19/ EWTFM-T-01379-19-O 01 Taxes Bradley Burnett
Instructional Method: Advanced Preparation: Program Prerequisites: Experience Level:
Group Internet Based NONE NONE Basic

Course Description:

June 30 Deadline for Some Form 8971s is Coming Like a Freight Train. Are You in the Train’s Path Now or Later?
Breaking News!! During tax season, IRS planted a couple of nuclear bombs in its newly issued Form 8971 Basis Consistency Regulations:

1. IRS’ all new ZERO BASIS rule: If tax matters are mishandled at the estate level, the beneficiary’s basis (for income tax purposes) in an inherited asset is zero!!

Any later transfer by a beneficiary (of an asset originally subject to Form 8971 reporting) itself must be reported on a newly generated Form 8971. IRS Form 8971, of course, is the controversial brand new form IRS requires an estate to complete to report basis of inherited assets to (IRS and) beneficiaries. Penalties for non compliance can be financially disastrous. Where is all of this coming from? The Highway Funding Bill (P.L. 114-41) created basis mania with 3 new statutes:

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