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October 2012

TSCPA Committee Responds to IRS on Cost Basis Reporting Rules and ITIN Changes

TSCPA’s Federal Tax Policy Committee communicated concerns to the Internal Revenue Service (IRS) on the administrative burdens new cost basis reporting requirements impose on taxpayers and tax preparers when a security is sold. Provisions enacted under the Emergency Economic Stabilization Act of 2008 shift the burden of calculating gains and losses from taxpayers to the brokers, starting with securities acquired on or after January 1, 2011. TSCPA recommends that the IRS postpone the effective date for applying the new procedures to allow brokers more time to implement new methods for capturing data to minimize Forms 1099-B inaccuracies. The Federal Tax Policy Committee also issued a letter to the IRS on interim changes to the individual taxpayer identification number (ITIN) application procedures.

TSCPA Letter on Cost Basis Reporting Requirements

TSCPA Letter on ITIN Procedures