T&E writes: "The regulations place the burden of reporting on brokers, custodians and transfer agents who, upon transferring securities out of clients’ accounts, must now provide receiving institutions with cost basis information within 15 days of the transfer. This burden is seen as a blessing by trust companies, accountants and the like who have traditionally had to track down this type of information when securities were received from a prior custodian." Of course brokerages have been fighting it. "Computing the adjusted cost basis on securities sold under the regulations will be a cumbersome undertaking." For a more complete explanation please read:
New Internal Revenue Service reporting requirements take effect on Jan. 1, 2011. Are you ready?