IRS Tax Reporting for Estate or Inheritance Tax
What you need to know about Estate or Inheritance Tax
Upon the passing of a loved one, the IRS expects to receive their share of the estate, especially in the absence of a living trust or estate planning prior to the event. It is important to have a formal appraisal performed as of the date of the decedent passing in order to avoid the IRS coming back after the fact and demanding additional taxes for underreporting the value of the business inherited. A formal appraisal written in accordance with USPAP Reporting requirements will satisfy this requirement. Often the information required to complete this type of assignment is not readily available if the decedent has not prepared for the eventuality requiring extensive research to complete the assignment. Our team is very experienced in delving into operations that do not have sophisticated accounting procedures in place.