IRS Gives Transitional Relief to Form 8937 Filers


The IRS announced on January 13 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 January 5 and its instructions on January 6. The due date of the form is January 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 January 17 Stock Basis Change Reporting Deadline.”

Newsletter Articles

50th ANNIVERSARY

50 years of The Tax Adviser

The January 2020 issue marks the 50th anniversary of The Tax Adviser, which was first published in January 1970. Over the coming year, we will be looking back at early issues of the magazine, highlighting interesting tidbits.

TAX RELIEF

Quirks spurred by COVID-19 tax relief

This article discusses some procedural and administrative quirks that have emerged with the new tax legislative, regulatory, and procedural guidance related to COVID-19.