ACTION REQUESTED
VIA FAX
July 7, 1995
TO: TAX COMMITTEE No. 26-95
ACCOUNTING/TREASURERS COMMITTEE No. 25-95
OPERATIONS COMMITTEE No. 22-95
TRANSFER AGENT ADVISORY COMMITTEE No. 38-95
RE: SURVEY OF AVERAGE COST BASIS REPORTING PRACTICES
______________________________________________________________________________
As you know, Congress has been considering legislation (such as H.R. 3419 -- last yearGs tax
simplification bill) that would require the reporting of average cost basis information to certain
redeeming mutual fund shareholders. Since this legislation was first introduced, the Institute has
provided technical comments on the proposal and called attention to the widespread, voluntary
provision of average cost basis reports to mutual fund shareholders.
During upcoming House Ways and Means Committee hearings on “miscellaneous tax reforms,”
Congress will revisit cost basis reporting and consider “deleting the [cost basis reporting] requirement in
H.R. 3419 because it is understood that much of the industry is voluntarily reporting basis to
shareholders.” In conjunction with these hearings, the Institute intends to submit written testimony
updating Congress on the industryGs voluntary efforts.
To assist us in preparing this testimony, we request that each firm with membership on the Tax,
Accounting/Treasurers, Operations or Transfer Agent Advisory Committee complete the attached
confidential survey and return it by fax -- to (202) 326-5841 -- by Friday, July 14. If you have any
questions regarding this survey or cost basis reporting legislation, please call me at (202) 326-5832.
We will keep you informed of developments.
Keith D. Lawson
Associate Counsel - Tax
Attachment