Original Issuance


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.

toggle Can issuers provide the information at a later point in time?

If issuers do not provide CBR information at the time the letter or data file is submitted to EQ, they can provide this information up until 15 calendar days after the information has been provided. If information is not provided within the 15 calendar days, the shares will be considered noncovered.

toggle Is there a specific section of the legislation that references the requirement for issuers to provide cost basis information?

Yes. Issuers should refer to the final IRS regulations that provide guidance for Transfer Statement reporting. Under the new legislation, issuers and their agents are required to provide transfer statements when transferring securities. By sending cost basis reporting information in either the O-I data file or letter formats, the transfer statement reporting requirement is addressed.