24 Jan Corporate Reporting of Transactions Affecting Basis
Under Section 6045B of the Internal Revenue Code of 1986, as amended (the “Code”) many corporations are required to file a new return (Form 8937) with the IRS in connection with non-dividend distributions and other corporate actions affecting stock basis. More specifically, starting in 2011, the issuer of “specified securities” shall file a return with the Department of the Treasury within 45 days of any “organizational action which affects the basis of such specified security of the issuer.” “Specified securities” include both (1) shares of stock in an entity organized as, or treated for federal tax purposes as, a corporation, and (2) other interests treated as stock. The reporting requirement applies to both United States and foreign corporations, and a reporting corporation may instead of sending the Form 8937 to the IRS and each shareholder, choose to satisfy its obligation by publicly posting such completed Form 8937 on its website for 10 years.
For more information, contact your tax professional or go to the IRS website at: http://www.irs.gov/instructions/i8937/ar01.htmlDisclaimer: This blog and website are public sources of general information concerning our firm and its lawyers, as well as the information presented. They are intended, but not promised or guaranteed, to be correct, complete, and up-to-date as of the date posted. This blog and website are not intended to be, and are not, sources of legal opinion or advice. The materials, information, and communications on this blog and website do not apply to any particular person, entity, or situation, and do not apply to you or to your specific situation. You will need to consult with an attorney and/or other appropriate professional about your specific situation. Thank you.