Pepper Hamilton LLP: IRS Temporarily Suspends Penalties for New Basis Reporting

By Todd B. Reinstein A key revenue-raiser contained in the Energy Improvement and Extension Act of 2008, was new Section 6045B that requires cost basis reporting in corporate transactions. 1 Section 6045B is primarily aimed at securities brokers, but to the surprise of many, the basis...

Electing the Average Basis Method Beginning January 1, 2012

The Energy Improvement and Extension Act of 2008 made changes to the average basis method rules. One of these changes is that the average basis method must be elected on an account-by-account basis beginning January 1, 2012. See IRC § 1012(c)(1) . A taxpayer may use the average basis method either...