Q&A (back to index)
New 1099-B Cost Basis Regulations
Posted by mrcarron on 05/17/2011 - 11:02
In past years the determination of market value of asset received from taxable in-kind distribution was not a compliance issue. Now with IRC Section 6045B Form 1099-B cost basis regulations effective 1/1/2011, the fair market value of taxable in-kind distribution will need to agree to a company's issuer statement. However, most companies are not complying with issuer information requirements since penalties are not being enforced for 2011 or the issuer statement is not provided for over a month after distribution date. Is the broker or accountant supposed to record an estimated cost basis for the asset received in-kind until the issuer statement is provided by the company?
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