Staying in the Loop: Recent Updates in the World of Cost Basis Reporting – June 22, 2011

Earlier today the U.S. Internal Revenue Service (IRS) issued a new set of interim guidance under 1012 of the Internal Revenue Code on issues relating to the basis of stock. Under 1.1012-1(e) of the Income Tax Regulations, taxpayers may use the average basis method to determine the basis of stock in a regulated investment company (RIC).

You can read the full details of the guidance here: http://www.irs.gov/pub/irs-drop/n-11-56.pdf

The IRS is also requesting comments on any issues that might arise under this notice. Comments should be submitted in writing on or before August 8, 2011, and should include a reference to Notice 2011-56.

Get in touch with us to learn more about how these and future changes will impact you – info@scivantage.com

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