Basis Reporting on Debt Instruments Delayed Until 2014, IRS Announces

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In response to concerns about approaching deadlines, brokers will have until 2014 to begin basis reporting on debt instruments and options, IRS and Treasury say. The change, announced in Notice 2012-34, is in response to worries voiced by brokers and other interested parties who complained to IRS that the proposed effective date of Jan. 1, 2013, did not give them enough time to build and test the systems required to implement the reporting for debt instruments and options. The Energy Improvement and Extension Act of 2008 amended the broker reporting rules in Section 6045 for certain securities, including debt instruments and options.