IRS Finalizes Basis Reporting Guidance With 2011 Transition Relief

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IRS issues guidance on the statutory requirement that stock brokers and mutual fund companies report basis and other information for most stock purchased in 2011, and all stock purchased in 2012 and subsequent years, offering transitional relief for 2011 stock purchases. The agency issues T.D. 9504 with specific details on the basis reporting requirements, as well as Notice 2010-67, outlining the transition relief. IRS says that, solely for transfers of stock in 2011, it will not assert penalties for failure to furnish a transfer statement under tax code Section 6045A, and that the transferred stock may be treated as a noncovered security on its subsequent sale or transfer. 

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