- 1 -
October 4, 1989
TO: TAX MEMBERS NO. 34-89
UNIT INVESTMENT TRUST MEMBERS NO. 51-89
CLOSED-END FUND MEMBERS NO. 46-89
OPERATIONS MEMBERS NO. 30-89
TRANSFER AGENT SHAREHOLDER ADVISORY COMMITTEE NO. 25-89
RE: IRS DELAYS MAILING OF B NOTICES UNTIL 1990
__________________________________________________________
As we previously advised you, the Internal Revenue Service
has been working for some time to implement the so-called "B
Notice mailings" which require a payor of dividends, such as a
RIC, to contact a shareholder if the IRS determines that the
taxpayer identification number and the name on the shareholder's
account do not "match." (See Institute Memorandum to Tax Members
No. 23-89, Unit Investment Trust Members No. 36-89, Closed-End
Fund Members No. 29-89, Operations Members No. 20-89, and
Transfer Agent Shareholder Advisory Committee No. 16-89, dated
July 14, 1989.) Backup withholding would be required under the B
Notice procedure for the accounts of any shareholder who does not
provide timely certification of the TIN to the payor following
the B Notice mailing.
This summer, the Institute sent to the Commissioner of
Internal Revenue and the Assistant Secretary of the Treasury for
Tax Policy a letter requesting a deferral of the B Notice mailing
scheduled for October 1989. (See Institute Memorandum to Tax
Committee No. 11-89, Unit Investment Trust Committee No. 38-89,
Closed-End Fund Committee No. 29-89, Operations Committee No. 12-
89, and Transfer Agent Shareholder Advisory Committee No. 19-89,
dated July 26, 1989). In the attached announcement, the IRS
delays the mailing of B Notices until 1990.
We will keep you informed of developments.
Keith D. Lawson
Assistant General Counsel
Attachment