Issuers should consult with their tax advisors to ensure they understand the new legislation and potential IRS penalties.
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.
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.