SIA Submits Comments to the IRS Relating to Taxable Stock Transactions

The Securities Industry Association (SIA)* provides comments to the Internal Revenue Service (IRS) relating to taxable stock transactions. SIA suggests four recommendations before the regulation is finalized: 1) the IRS should require that corporations communicate taxable stock transaction information to the financial community; 2) brokers should be allowed to furnish Form 1099-B in lieu of Form 1099-CAP to actual owners of stock; 3) brokers should be allowed to report the cash and the fair market value amounts either as a single transaction or as separate transaction; and 4) the IRS should permit payers to combine Form 1099-CAP with Forms 1099-B, 1099-DIV, 1099-INT, 1099-OID and 1099-MISC (royalties) ina consolidated payee statement.

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