IRS Corrects Estate Basis Reporting Rule
Summary
The IRS has issued correcting amendments to a final rule published in September 2024 concerning estate basis reporting under sections 1014(f) and 6035 of the Internal Revenue Code. These corrections address inadvertent overwrites in the previous language and are effective March 19, 2026.
What changed
This document provides correcting amendments to a final rule (TD 9991) that was published on September 17, 2024. The corrections specifically address language in sections 301.6721-1 and 301.6722-1 of the CFR, which pertain to penalties for failure to file correct information returns and failure to furnish correct payee statements, respectively. The corrections clarify exceptions related to information returns and payee statements required to be filed or furnished after September 17, 2024, and on or after January 1, 2026.
These corrections are effective March 19, 2026. Regulated entities should review the specific amendments to sections 301.6721-1 and 301.6722-1 to ensure compliance with the clarified reporting requirements and associated penalty exceptions. No immediate action is required by the effective date of the corrections, as the specific dates for applicability of the amended exceptions are detailed within the text.
What to do next
- Review amendments to 26 CFR 301.6721-1 and 301.6722-1 regarding information return and payee statement requirements.
- Note the specific effective dates for exceptions related to returns and statements filed/furnished after September 17, 2024, and on or after January 1, 2026.
Source document (simplified)
Content
ACTION:
Final rule; correcting amendments.
SUMMARY:
This document contains corrections to a final rule (TD 9991), which was published in the
Federal Register
on Tuesday, September 17, 2024 (89 FR 76356). That document inadvertently overwrote some previous language, and this document
corrects the final regulations.
DATES:
These corrections are effective on March 19, 2026.
FOR FURTHER INFORMATION CONTACT:
Concerning section 1014(f), Donna Douglas at 202-317-6859; concerning section 6035, Karen Wozniak at 202-317-6844 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9991) that are the subject of this correction are under sections 1014(f), 6035, 6721, and 6722 of
the Internal Revenue Code.
List of Subjects in 26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income taxes, Penalties, Reporting and recordkeeping requirements.
Corrections to the Regulations
Accordingly, 26 CFR part 301 is corrected by making the following correcting amendments:
PART 301—PROCEDURE AND ADMINISTRATION
Regulatory Text Paragraph 1.
The authority citation for part 301 continues to read in part as follows:
Authority:
26 U.S.C. 7805.
Par. 2.
Section 301.6721-1 is amended by revising paragraph (j)(2) to read as follows:
§ 301.6721-1 Failure to file correct information returns.
(j) * * *
(2) Exceptions. (i) Paragraph (h)(3)(iii) of this section applies to returns required to be filed on or after January 1, 2026.
(ii) Paragraph (h)(2)(xii) of this section applies with respect to information returns required to be filed after September
17, 2024.
Par. 3.
Section 301.6722-1 is amended by revising paragraph (g)(2) to read as follows:
§ 301.6722-1 Failure to furnish correct payee statements.
(g) * * *
(2) Exceptions. (i) Paragraph (e)(2)(viii) of this section applies to payee statements required to be furnished on or after January 1, 2026.
(ii) Paragraph (e)(2)(xxxv) of this section applies with respect to payee statements required to be furnished after September
17, 2024.
Kalle L. Wardlow, Federal Register Liaison, Publications and Regulations Branch, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 2026-05447 Filed 3-18-26; 8:45 am] BILLING CODE 4831-GV-P
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