Cost Basis Reporting News

(Published October 8, 2018) In this article, the authors discuss the potential application of the wash sale and straddle rules to cryptocurrencies and cryptocurrency-related investments.

In this article, Stevie Conlon, Anna Vayser, and Robert Schwaba explore the tax treatment of bitcoin forks.

Do the final cost basis regulations require calculation of adjusted cost basis to be reported on 2014 Form 1099-B for tax-exempt OID bonds sold?

This paper highlights some of the additional tax reporting complexities brokers now face when accounting for IRS Form 8937 as part of cost basis compliance.

The cost basis reporting law radically shifts the corporate actions tax reporting paradigm. As a result of this law, tax, legal and operations professionals responsible for corporate actions processing now need real-time access to corporate actions taxability details to accurately adjust the basis of covered foreign and domestic securities when reporting the sales or transfer of those securities for accurate tax reporting.

On May 2, 2012, the IRS issued Notice 2012-34 announcing that the IRS intends to delay the effective date for debt and option basis reporting for one year, from the initial proposed date of January 1, 2013 to January 1, 2014.

(Published February 24, 2012) In a letter to the IRS, The Bank of New York Mellon commented on the proposed cost basis regulations for debt instruments and options requesting the delay in the effective date of those regulations. Specific comments on debt instruments and options include: exclusions of some discount calculations, clear definition of “adjusted cost basis,” classification of non-equity options, finite definition of “financial attributes” and more.

(Published February 23, 2012) In a letter to the IRS, the Financial Information Forum (FIF) commented on the proposed rulemaking regarding basis reporting by securities brokers and basis determination for debt instruments and options [REG-102988-11]. The FIF offered feedback pertaining to the final effective date for fixed income, inclusion of safe harbor language in the final regulations for brokers who rely on calculation data in good faith, the definition of fixed income securities, fixed income transfer requirements and more.

(Published February 23, 2012) The American Bankers Association (ABA) addressed a letter to the IRS with comments on the proposed information reporting of consumer’s basis in securities transactions. The ABA provided feedback in regards to the applicability of reporting requirements, basis determination method elections, reconciliation with customer reporting, transfer reporting and more.

(Published February 23, 2012) In a letter to the IRS, LPL Financial, LLC. commented on the proposed cost basis reporting by securities brokers and basis determination for debt instruments and options, requesting an extension of the effective date and inviting the IRS to a dialogue with the broker-dealer industry to better address the ongoing tax compliance and reporting concern of the industry. In addition, LPL strongly encourages the IRS to provide safe harbor permitting brokers to rely in good faith on the information provided by the other broker-dealers when transferring and reposting cost basis information.