Interim guidance has been released under Code Sec. 1012 on issues relating to the basis of stock subject to broker reporting under Code Sec. 6045, pending publication of superseding guidance. The guidance addresses public stakeholders’ requests for clarification and new issues they raised after final regulations governing basis and sales reporting by securities brokers were published (T.D. 9504; TAXDAY, 2010/10/13-1.3). The issues addressed in the guidance include: the change from the broker default average basis method; the ten-percent reinvestment rule and fractional shares; and lot selection methods across accounts.
Comments are requested on issues arising under this guidance. Comments should be submitted in writing on or before August 8, 2011, and should include a reference to Notice 2011-56. Comments may be submitted to CC:PA:LPD:PR (Notice 2011-56), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044, or electronically to Notice.Comments@irscounsel.treas.gov. “Notice 2011-56” should be included in the subject line of any electronic communications. Submissions may be hand-delivered Monday through Friday between the hours of 8:00 a.m. and 4:00 p.m. to CC:PA:LPD:PR (Notice 2011-56), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, D.C. 20224.
Notice 2011-56, 2011FED ¶46,403
Code Sec. 1012
CCH Reference – 2011FED ¶29,335.9523
Code Sec. 6045
CCH Reference – 2011FED ¶35,930.27
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