June 20, 1990
TO: ACCOUNTING/TREASURERS COMMITTEE NO. 16-90
OPERATIONS COMMITTEE NO. 11-90
TAX COMMITTEE NO. 12-90
TRANSFER AGENT ADVISORY COMMITTEE NO. 17-90
RE: NOTICE OF MEETING ON PROPOSALS TO REQUIRE FUNDS TO
CALCULATE SHAREHOLDER BASIS
__________________________________________________________
A meeting has been scheduled on Wednesday, June 27, 1990,
at 10:00 A.M. in the Investment Company Institute conference room
to discuss the House Ways and Means Committee staff proposal
released this week that would require mutual funds to calculate
basis in fund shares for shareholders. The Ways and Means
Committee staff would generally require funds to calculate a
shareholder's basis in his fund shares and provide this
information to the Internal Revenue Service upon the
shareholder's request. The proposal does not go into detail, but
a recent article by Gene Steuerle, a former Treasury Department
official, suggests that Congress (1) eliminate optional methods
for calculating gains of any one mutual fund account and (2)
require mutual funds to calculate gains and losses on shares
bought and purchased from each account.
The Ways and Means Committee proposal and Steuerle's
article will follow by regular mail.
Please call Wynetta Culbreath at (202) 955-3525 if you plan
on attending the meeting on the 27th. Lunch will be served
following the meeting.
David J. Mangefrida, Jr.
Assistant General Counsel
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