The IRS will study reporting and compliance issues regarding like-kind
exchanges of property under IRC section 1031. The move comes in response
to a September report by the Treasury Inspector General for Tax
Administration that faulted the IRS for what it called little oversight
of the method for deferring capital gains tax. Amounts so deferred more
than tripled in six years, to $73.6 billion in 2004, TIGTA said. The
report also called for more consistent guidance on filing requirements
for Form 8824, Like-Kind Exchanges
, and clarification of rules and regulations regarding exchanges of
second and vacation homes (see “ Home Free
,” JofA
, Jan. 07, page 40).
