SIA Submits Comments to the IRS on Coverdell ESA Reporting

The Securities Industry Association (SIA)* provides comments to the Internal Revenue Service (IRS) on Coverdell ESA reporting. Some of the information requested on the 1099-Q and 5498-ESA forms, specifically the cost basis of distribution may be impossible to obtain. Supplying cost basis may not yield information that a taxpayer would need to file his or her tax return. And in most cases the taxpayer is the best or only source of cost basis information. SIA urges the IRS to reconsider the requirement to report the basis of distibutions on form 1099-Q and the establishment of more reasonable filing deadlines for the 5498-ESA.

*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.