May 29, 1992
TO: UNIT INVESTMENT TRUST COMMITTEE NO. 30-92
UIT TASK FORCE ON COST BASIS REPORTING
RE: JUNE 15, 1992 MEETING ON COST BASIS REPORTING
__________________________________________________________
As we have discussed at prior meetings of the UIT
Committee, a proposal is pending in Congress that would require
the reporting of certain cost basis information to mutual fund
shareholders and to unitholders in UITs that are organized for
tax purposes as regulated investment companies ("RICs"). The
proposal would not apply, however, to UITs organized as grantor
trusts.
Under the attached proposal, which was included in the tax
bill that President Bush vetoed on March 20, 1992, the person
(trustee or sponsor) presently required to report on IRS Form
1099-B the gross proceeds on sales or exchanges of units in UITs
organized as RICs would be required to provide to unitholders and
the Internal Revenue Service ("IRS") certain cost basis
information for units redeemed. This reporting requirement would
apply, however, only to units acquired on or after January 1,
1994.
A meeting to discuss the proposal and the various
operational considerations it would raise for the UIT industry
will be held at the Institute on Monday, June 15, 1992 at 10:00
a.m. Lunch will be served following the meeting. Anyone
planning on attending the June 15 meeting is requested to contact
Ms. Berlaunder Barnes at (202) 955-3518 no later than Wednesday,
June 10.
We will keep you informed of developments.
Keith D. Lawson
Associate Counsel - Tax
Attachment