File under “did not see this coming”… IRS Delays Fixed Income and Options Reporting

The Internal Revenue Service today announced a delay in the proposed effective dates for reporting for debt instruments and options from January 1, 2013 to January 1, 2014.

Since the proposed regulations and effective date were published, the Treasury Department and IRS have received numerous requests to delay the proposed effective dates for debt instruments and options. Brokers have argued that the proposed effective date of January 1, 2013, “did not provide sufficient time to build and test the systems required to implement the reporting rules” for these securities.

After consideration of these comments, the Treasury Department and IRS have confirmed that the rules in the proposed regulations will now not apply until January 1, 2014, giving the industry more time to prepare.

For the complete notice, visit: Notice 2012-34

Posted in Basis reporting legislation, Cost Basis, tax management and tagged , .