Cost Basis Reporting

FAQs

toggle Will issuers be required to provide AST with cost basis information?

Yes. In most instances of original issuance, the issuer will be required to furnish cost basis information for:

  • Issuance of stock upon conversion of Convertible Bonds
  • Issuance of stock upon conversion of Convertible Preferred Stock
  • Issuance of stock upon exercise of Warrants
  • Issuance of stock in connection with corporate actions
  • Issuance of stock upon exercise of Employee and Executive Stock Options
  • Original issuance of restricted stock awards and restricted stock vestings, however, will not require cost basis information

toggle Are there any IRS penalties if cost basis reporting information is not provided?

Issuers should consult with their tax advisors to ensure they understand the new legislation and potential IRS penalties.

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