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DO AS WE SAY, WHETHER WE WRITE THE FORM OR NOT . . .

Posted by Admin Posted on Feb 24 2011

Back in 2008, Congress adopted a requirement for corporations that issue stock, mutual funds and brokers to report stock splits, mergers, spinoffs and any other transactions that affect the basis of shares.  The report must be filed with the IRS within 45 days after the transaction, and to the shareholders by January 15 of the following year, starting in 2011.  In a nod to technology, the report can be posted tot he company's website instead of filed with the IRS.

The problem is that the IRS hasn't created the form yet, so companies don't know what information to provide or the format in which to provide it.

The IRS has extended the filing date for these reports to January 15, 2012, and will not impose penalties for failure to file the reports.

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