TSCPAs’ Federal Tax Policy Committee issued a letter to the IRS Office of Associate Chief Counsel addressing concerns with broker reporting requirements under the new IRS bond premium amortization rules. The committee expressed that the 2014 Form 1099-INT instructions and temporary regulations Section 1.6049-9T require brokers to make inconsistent assumptions for “covered” and “noncovered” bonds, which may result in inadvertent noncompliance. In the past, few taxpayers elected to amortize taxable bond premiums under IRC Section 171 because the information for making the election was not readily available. New rules generally require brokers to report taxable bond interest and the basis on covered taxable bonds as if the election had been made. While the election is generally advantageous to taxpayers, it must apply to all taxable bonds, including any noncovered bonds in the taxpayer’s portfolio. This inconsistent 1099 treatment can cause a possible invalid election and mismatching of both interest income and basis reported on tax returns versus Forms 1099. In its letter, the TSCPA committee asked the IRS to consider implementing seven recommendations.