AICPA recommends changes in estate tax basis rules.

• Position: News & trends

The AICPA submitted comments to the IRS and the U.S. Department of the Treasury In June regarding proposed regulations dealing with estate tax basis reporting.

The proposed regulations Implement changes to Internal Revenue Code Sec. 1014 mandated by Congress last year under the Surface Transportation and Veterans Health Care Choice Improvement Act to require consistency between the basis of property in the hands of an estate beneficiary and the value reported on the federal estate tax return.

Basis is Important for such income tax purposes as determining gain or loss of property and depreciation deductions.

The AICPA recommended that the "zero basis" rule be removed from IRC Sec. 1014 and that a supplemental Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, be allowed to be filed at any time, even if the statute of limitations has expired because it believes "that the...