With time running out on funding for federal highway and transportation spending, Congress passed a temporary extension that was signed into law July 31, 2015. Funding was provided by some tax compliance measures. The changes most relevant to topics covered here:
- Recipients of inherited property from estates large enough to file estate tax returns will receive information reports from the executor concerning the basis of property received, and will be required to use that basis in reporting gain or loss on a subsequent sale of that property. The requirement applies to estate tax returns filed after July 31, 2015, but in Notice 2015-57 the IRS says the due date will be February 29, 2016 for any filings that would otherwise be required before that date.
- Partnership returns will generally be due March 15 instead of April 15. This change takes effect for tax years beginning in 2016, so partners will generally receive their tax information earlier beginning in 2017. With this change, many partners who are now forced to file on extension will be able to file by April 15.
- Mortgage interest statements provided by lenders will offer more complete information, including the principal balance of the loan, the address of the property, and the loan origination date. Borrowers will see this change beginning with forms received in 2017.