The
Bailout
Bill
of
2008
and Cost Basis Reporting – an Operational
Perspective
Trace Bronstone
Vice President and Manager
Securities Processing
UNION BANK
San Francisco, California
Changes to Cost Basis reporting requirements will have a wide impact in
2011. A new cost basis reporting requirement is a provision of the
“Bailout Bill of 2008” and the direct result of the IRS’s focus on
increasing tax revenue and decreasing the amount of potential revenue
uncollected due to inaccurate reporting of investment income and
losses. The new law requires custodians to include adjusted cost basis
on annual 1099s to taxpayers and to the IRS. Heretofore, 1099s have
only displayed proceeds from the sale of securities and it has been the
duty of the “taxpayer” and their accountants to be responsible for the
reporting of cost basis gains and losses on their 1040s. Trace will
provide and attendees will learn a practitioners view on the controls
and approach required to meet the new rule in the new environment of
regulated “best practices”.
