The Energy Improvement and Extension Act of 2008 requires brokers to report the customer’s basis for stock sales of covered securities beginning with the 2011 tax year. Section 6045B, which was added by the Act, requires companies that have an organizational action that affects stock basis to file a return with the IRS and to send a statement to the stockholders or their nominees. Issuers must file the return within 45 days after the action or by January 15 of the following year, whichever is earlier. An issuer may elect to report the return information by the due date of the return on its company website in lieu of filing returns with the IRS and mailing statements to shareholders or nominees.
On February 22, 2011, the IRS issued Notice 2011-18. The Notice provides that, for organizational actions occurring in 2011, the IRS will not impose penalties against issuers for missing the deadline to file a return or make the return publicly available, provided that the issuer files the return with the IRS or makes it publicly available by January 17, 2012.