- 1 -
July 25, 1990
TO: TAX COMMITTEE NO. 18-90
OPERATIONS COMMITTEE NO. 14-90
TRANSFER AGENT ADVISORY COMMITTEE NO. 24-90
RE: AUGUST 7, 1990 B NOTICE/BACKUP WITHHOLDING MEETING
__________________________________________________________
As you know, the Institute has held several meetings with
the Internal Revenue Service in recent years to discuss tax
compliance issues arising from information reporting and backup
withholding requirements. In addition, the Institute has also
filed several comment letters with the IRS and written statements
at Congressional hearings on these issues.
On May 30, 1990, a special meeting of the Tax, Operations
and Transfer Agent Advisory Committees was held to discuss
information reporting issues. This meeting served as a prelude
to a meeting on June 6, 1990 between the Institute and the
Treasury Department to discuss pending regulations on B Notice,
backup withholding and due diligence issues. Attached is a
letter sent to Treasury prior to the June 6 meeting discussing
issues of concern to our industry.
A meeting between the Institute and the Internal Revenue
Service has been scheduled for the afternoon of August 7, 1990 to
discuss information reporting and backup withholding issues. One
purpose of this meeting will be to discuss the B Notice test run
mailing sent in June and the IRS' plans with respect to "real" B
Notices scheduled for this fall. (See Institute Memorandum to
Closed-End Fund Members No. 22-90, Operations Members No. 15-90,
Tax Members No. 19-90, Unit Investment Trust Members No. 38-90
and Transfer Agent Advisory Committee No. 15-90, dated June 14,
1990.) All other problems we have identified over the years that
have not yet been corrected will also be discussed.
Prior to the Institute meeting with the IRS, it would be
especially useful to receive input regarding the June test run
mailing and any new problems anticipated if "real" B Notices are
sent this fall subject to the current B Notice procedures. Input
regarding other problems would also be appreciated.
Consequently, a meeting will be held at the Institute at 10:00
- 2 -
a.m. on August 7 to discuss these issues. Lunch will be served
- 3 -
following the meeting. Please let Berlaunder Barnes at the
Institute (202/955-3518) know by August 3, 1990, if you will be
attending the 10:00 a.m. meeting.
We will keep you informed of developments.
Keith D. Lawson
Associate General Counsel
Attachment
KDL:bmb