Joint ICI/SIFMA Letter On February 15 Tax Reporting DeadLine

 

 

[23069]

 

November 17, 2008

TO: TAX MEMBERS No. 47-08
OPERATIONS MEMBERS No. 24-08
TRANSFER AGENT ADVISORY COMMITTEE No. 67-08
BANK, TRUST AND RECORDKEEPER ADVISORY COMMITTEE No. 36-08
BROKER/DEALER ADVISORY COMMITTEE No. 42-08     RE: JOINT ICI/SIFMA LETTER ON FEBRUARY 15 TAX REPORTING DEADLINE

 

The ICI and SIFMA today sent the attached letter to IRS urging prompt guidance applying to consolidated reporting statements the extended tax information reporting deadline provided by the recent tax legislation. As we previously informed you, [1] the cost basis reporting requirement enacted in October as part of the economic stabilization legislation extended from January 31 to February 15 [2] the due date for providing customers with IRS Form 1099 tax information. The new law extends this due date for tax information provided beginning in 2009 (for tax year 2008).

 

The letter was sent after IRS stated, in “corrected” instructions for the 2008 Forms 1099, [3] that the extended due date is available for Forms 1099-B, 1099-S, and in certain cases 1099-MISC. The IRS statement makes no mention of Forms such as 1099-DIVs, 1099-INTs, 1099-OIDs, or other forms that are furnished with a consolidated reporting statement.

 

The ICI/SIFMA letter describes: (1) the difficulties created by the January 31 deadline; (2) Congress’ response to the joint ICI/SIFMA effort to extend the due date; (3) the industry’s practice of consolidating all tax information on a single statement; and (4) the need for prompt guidance to eliminate confusion that otherwise will arise from the limited scope of the IRS’ “corrective” notice.

 

Keith Lawson
Senior Counsel - Tax Law

 

 

Attachment

 

 

endnotes

 [1] See Institute Memorandum (22916) to Bank, Trust and Recordkeeper Advisory Committee No. 31-08, Broker/Dealer Advisory Committee No. 37-08, Federal Legislation Members No. 13-08, Operations Members No. 17-08, Pension Members No. 60-08, Small Funds Members No. 61-08, Tax Members No. 40-08, and Transfer Agent Advisory Committee No. 59-08, dated October 3, 2008.

 [2] For 2009, the due date is February 17 because February 15 is a Sunday and February 16 is a Federal holiday.

 [3]  http://www.irs.ustreas.gov/formspubs/article/0,,id=109875,00.html