Sec. 2004. CONSISTENT BASIS REPORTING BETWEEN ESTATE AND PERSON ACQUIRING PROPERTY FROM DECEDENT
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## SEC. 2004 CONSISTENT BASIS REPORTING BETWEEN ESTATE AND PERSON ACQUIRING PROPERTY FROM DECEDENT ###
(a)Property Acquired From a Decedent Section 1014 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: > > ### “(f) Basis Must Be Consistent With Estate Tax Return > > For purposes of this section— > > > #### “(1) In general > > The basis of any property to which subsection
(a)applies shall not exceed— > > > ##### “(A) > > in the case of property the final value of which has been determined for purposes of the tax imposed by chapter 11 on the estate of such decedent, such value, and > > > ##### “(B) > > in the case of property not described in subparagraph
(A)and with respect to which a statement has been furnished under section 6035(a) identifying the value of such property, such value. > > > #### “(2) Exception > > Paragraph
(1)shall only apply to any property whose inclusion in the decedent’s estate increased the liability for the tax imposed by chapter 11 (reduced by credits allowable against such tax) on such estate. > > > #### “(3) Determination > > For purposes of paragraph (1), the basis of property has been determined for purposes of the tax imposed by chapter 11 if— > > > ##### “(A) > > the value of such property is shown on a return under section 6018 and such value is not contested by the Secretary before the expiration of the time for assessing a tax under chapter 11, > > > ##### “(B) > > in a case not described in subparagraph (A), the value is specified by the Secretary and such value is not timely contested by the executor of the estate, or > > > ##### “(C) > > the value is determined by a court or pursuant to a settlement agreement with the Secretary. > > > #### “(4) Regulations > > The Secretary may by regulations provide exceptions to the application of this subsection.” > . ###
(b)Information Reporting ####
(1)In general Subpart A of part III of subchapter A of chapter 61 of such Code is amended by inserting after section 6034A the following new section: > > ## “SEC. 6035 BASIS INFORMATION TO PERSONS ACQUIRING PROPERTY FROM DECEDENT > > **[**[26 U.S.C. 6035](/us/usc/t26/s6035)**]** > > > ### “(a) Information With Respect to Property Acquired From Decedents > > > #### “(1) In general > > The executor of any estate required to file a return under section 6018(a) shall furnish to the Secretary and to each 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. > > > #### “(2) Statements by beneficiaries > > Each person required to file a return under section 6018(b) shall furnish to the Secretary and to each other person who holds a legal or beneficial interest in the property to which such return relates a statement identifying the information described in paragraph (1). > > > #### “(3) Time for furnishing statement > > > ##### “(A) In general > > Each statement required to be furnished under paragraph
(1)or
(2)shall 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. > > > ##### “(B) Adjustments > > In any case in which there is an adjustment to the information required to be included on a statement filed under paragraph
(1)or
(2)after such statement has been filed, a supplemental statement under such paragraph shall be filed not later than the date which is 30 days after such adjustment is made. > > > ### “(b) Regulations > > The Secretary shall prescribe such regulations as necessary to carry out this section, including regulations relating to— > > > #### “(1) > > the application of this section to property with regard to which no estate tax return is required to be filed, and > > > #### “(2) > > situations in which the surviving joint tenant or other recipient may have better information than the executor regarding the basis or fair market value of the property.” > . ####
(2)Penalty for failure to file #####
(A)Return **[**[26 U.S.C. 6724](/us/usc/t26/s6724)**]** Section 6724(d)(1) of such Code is amended by striking “ and ” at the end of subparagraph (B), by striking the period at the end of subparagraph
(C)and inserting “ , and ”, and by adding at the end the following new subparagraph: > > ##### “(D) > > any statement required to be filed with the Secretary under section 6035.” > . #####
(B)Statement Section 6724(d)(2) of such Code is amended by striking “ or ” at the end of subparagraph (GG), by striking the period at the end of subparagraph
(HH)and inserting “ , or ”, and by adding at the end the following new subparagraph: > > ###### “(II) > > section 6035 (other than a statement described in paragraph (1)(D)).” > . ####
(3)Clerical amendment The table of sections for subpart A of part III of subchapter A of chapter 61 of such Code is amended by inserting after the item relating to section 6034A the following new item:" “Sec. 6035. Basis information to persons acquiring property from decedent.” ". ###
(c)Penalty for Inconsistent Reporting ####
(1)In general Section 6662(b) of such Code is amended by inserting after paragraph
(7)the following new paragraph: > > #### “(8) > > Any inconsistent estate basis.” > . ####
(2)Inconsistent basis reporting Section 6662 of such Code is amended by adding at the end the following new subsection: > > ### “(k) Inconsistent Estate Basis Reporting > > For purposes of this section, there is an ‘inconsistent estate basis’ if the basis of property claimed on a return exceeds the basis as determined under section 1014(f).” > . ###
(d)Effective date **[**[26 U.S.C. 1014 note](/us/usc/t26/s1014)**]** The amendments made by this section shall apply to property with respect to which an estate tax return is filed after the date of the enactment of this Act.
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Sec. 2004
CONSISTENT BASIS REPORTING BETWEEN ESTATE AND PERSON ACQUIRING PROPERTY FROM DECEDENT
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