Colorado Probate Blog - Wade Ash Woods Hill & Farley, P.C.

Highway Bill Contains Some Tax Provisions

On July 31, 2015, the President signed H.R. 3236, the "Surface Transportation and Veterans Health Care Choice Improvement Act of 2015" which primarily continues the highway trust fund for another three months. Included in the bill is a requirement for consistency for large estates (those required to file an estate tax return): the estate must report the value of property included in the gross estate (date of death or alternate value), and the same value must be used for income tax basis reporting. Any underpayment of tax due to understatement of basis would be subject to a 20% accuracy-related penalty, and the bill also clarifies that the 6-year statute of limitations applies where an overstatement of basis results in a substantial (25% or more) omission of income.

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Recipient of IRA Subject to Transferee Liability for Taxes

By Laurie A. Hunter, Esq.

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