IRS gives transitional relief to Form 8937 filers

BY ALISTAIR M. NEVIUS

The IRS announced on Friday that, due to its late release of the required form, it will not impose penalties on issuers of stock who report incorrect 2011 information required under Sec. 6045B, as long as they make a good-faith effort to timely comply with the requirements (Notice 2012-11).

The IRS released the final version of Form 8937, Report of Organizational Actions Affecting Basis of Securities, on Jan. 5 and its instructions on Jan. 6. The due date of the form is Jan. 17. The IRS said in the notice that it “recognizes that the release date provides a very limited timeframe remaining before the due date of the form.”

Therefore, the IRS will not impose penalties, for reporting incorrect information, on issuers who are required to file Form 8937 and furnish statements to shareholders under Sec. 6045B, provided they make good-faith efforts to post Form 8937 (or the required information) on their website or file accurate Forms 8937 and furnish corresponding issuer statements.

The IRS says this relief applies only to organizational actions occurring in 2011.

For earlier coverage of this topic, see “Form debuts for Jan. 17 stock basis change reporting deadline.”

Alistair M. Nevius is editor-in-chief of The Tax Adviser.

More from the JofA:

 Find us on Facebook  |   Follow us on Twitter  |   View JofA videos

SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income and the cap on the deductibility of state and local taxes.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.