New U.S. Tax Basis Reporting Rules Imposed on Certain Securities IssuersFebruary 2012
U.S. and non-U.S. issuers of specified securities are subject to new U.S. tax basis reporting obligations under Section 6045B of the U.S. Internal Revenue Code of 1986, as amended (Code), which was enacted as part of the Energy Improvement and Extension Act of 2008. In general, effective January 1, 2011, if an issuer of a “specified security” takes an organizational action that affects the U.S. tax basis of that security, then the issuer, subject to certain exceptions, must file Form 8937 with the U.S. Internal Revenue Service (IRS) and furnish a copy of the form (or corresponding information statement) to its security holders or their nominees. As discussed below, an issuer is not required to file Form 8937 with the IRS or furnish a copy of the form to holders if the issuer posts the required information on its website. An issuer’s failure to comply with such reporting obligations could give rise to significant penalties. If an issuer has not already done so, it should file Forms 8937 or post the required information on its website for 2011 organizational actions promptly.
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