Staying in the Loop: Recent Updates in the World of Cost Basis Reporting
The month of April saw a few changes to the realm of cost basis reporting including updates from the IRS and DTC:
After much delay, the IRS has produced and reposted the “final” version of form 1099-B and instructions that omits needed data for Box 7.
Also, the DTC released an Important Notice about a new maximum size for the Transaction End of Day download file. Starting on June 10, 2011, DTC will not create the Transaction End of Day download file if it contains greater than 3,000 records. Firms should program to the Transaction MRO if they will exceed this maximum.
The DTC published another Important Notice to its Website, explaining the change to the file where DTCC will no longer add the 3-character Julian Date and the 5-character to the Unique ID. DTC will only pass on the DAM Reference ID Number, ARF Number, or CID Number – exactly as it appears on the deposit ticket – to the transfer agent. This change was implemented on the file transmitted on Friday, April 22.
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