[21062]
April 17, 2007
TO: OPERATIONS COMMITTEE No. 6-07TAX COMMITTEE No. 17-07
TRANSFER AGENT ADVISORY COMMITTEE No. 20-07 RE: 2007 COST BASIS REPORTING SURVEY
Over the past year, there has been continued interest in cost basis reporting legislation by both Congress and the Administration. [1] Bills in the House of Representatives and the Senate [2] would require brokers to report cost basis information to shareholders and the Internal Revenue Service upon the disposition of certain securities, including mutual fund shares. The Institute continues to discuss these proposals with Congressional, Department of Treasury, and IRS staff to ensure that such legislation, if enacted, is useful to the government and shareholders and administrable by mutual funds.
Request for Information
To assist the Institute in these discussions, we would like each fund complex to complete the attached survey. A similar survey was circulated last year; [3] the purpose of the 2007 survey is to update that information. Only one response is needed from complexes with representatives on more than one of the committees receiving this request. Participant responses are confidential, and the Institute will not share specific fund complex information with any third parties.
Your response should be sent at your earliest convenience, but no later than Monday, April 23, 2007, to Ezella Wynn, by fax (202-326-5841) or e-mail (ewynn@ici.org). If you have any questions or comments regarding the survey or cost basis reporting in general, please call Keith Lawson at 202-326-5832 or me at 202-371-5432.
Karen Lau Gibian
Assistant Counsel
endnotes
[1] See Institute Memorandum (20844) to 529 Plan Members No. 1-07, Bank, Trust and Recordkeeper Advisory Committee No. 4-07, Broker/Dealer Advisory Committee No. 9-07, Federal Legislation Members No. 1-07, Operations Members No. 6-07, Pension Members No. 8-07, Small Funds Members No. 14-07, Tax Members No. 6-07, and Transfer Agent Advisory Committee No. 8-07, dated February 5, 2007.
[2] The texts of the House bill (H.R. 878) and Senate bill (S. 601) can be found on the Library of Congress webpage: http://thomas.loc.gov.
[3] See Institute Memorandum (19795) to Operations Committee No. 8-06, Tax Committee No. 6-06, and Transfer Agent Advisory Committee No. 15-06, dated March 3, 2006.