Podcast Center
Video Center
Webcasts
Resource Center
Events
September 01, 2011 at 10:24 AM
The IRS is preparing to issue three regulations to address concerns created by its issuance of regulations last October surrounding reporting the cost basis of stocks (TD 9504).
In June, the IRS issued Notice 2011-56, which offers a favorable resolution to the issues, according to a commentary by Stevie D. Conlon, senior director & tax counsel, risk & compliance, securities tax solutions, for Wolters Kluwer Financial Services
The first matter concerned the ability of a customer to opt out of a broker’s default method of lot relief for determining cost basis on the sale of average basis eligible mutual fund and dividend reinvestment plan shares.
The final regulations had not provided for the customer to be able to undo the calculation of average basis of shares held and acquired prior to the opt-out, even if the customer had not sold any shares before opting out. However, the final regulations had included a way for customers to opt out of averaging if they had elected averaging and no shares had been sold.
