For the estates of decedents who died in 2010 and opted out of the estate tax rules and into the modified carryover basis rules (for example, George Steinbrenner's estate), heirs have until Tuesday, July 17, 2012, in which to make amendments to IRS Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent. Attorneys from McGuireWoods LLP have provided a concise summary of the history of IRS Form 8939 and given a list of reasons why heirs may consider amending a Form 8939, including:
- Property subject to carryover basis or eligible for basis increases has been more accurately identified.
- Historical bases and date of death values have been more accurately determined.
- The decedent's tax profile has been more thoroughly studied.
- Equitable treatment of respective beneficiaries has been more appropriately determined.
To read full version of the McGuireWoods summary, refer to July 17 is the Deadline for Amending 2010 Carryover Basis Forms (Form 8939).
Only in very limited cases will the IRS allow additional amendments to Form 8939 after July 17, 2012, so the time to act is now.