2011 Tax Changes for Businesses and Investors: Corporate Actions Reporting

There have been many changes to the tax laws over the past few years.  To keep you informed, we have summarized some of these changes.  Today, we are covering corporate actions reporting.

As of January 1, 2011, organizations that issue “specified securities” must report actions that affect security basis made within the tax year to the IRS.  In general, the return must be filed within 45 days of the action.  Those affected by the corporate action must be given a written statement showing (1) the name, address, and phone number of a the person filing the form, (2) the information required for the return, and (3) any other info required by the IRS. In general, a specified stock is any share of stock in an entity formed as a foreign or domestic corporation.

If you have any questions regarding this change to the tax laws or tax planning in general, please contact our office.

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