Transition Relief for Transfer Reporting

SIFMA provides comments to the U.S. Senate Finance and the U.S. House Ways and Means Committees requesting transition relief for transfer reporting under Code Section 6045A by delaying the current effective date for transfer statements until January 1, 2012. To date, final Treasury regulations have not been issued. SIFMA requests the Senate to urge the US Department of Treasury and the Internal Revenue Service (IRS) to delay the current effective date for transfer statements until January 1, 2012. SIFMA is concerned that if brokers and applicable persons are required to send and receive transfer statements, effective for transfers beginning on January 15, 2011, inaccurate or incomplete basis information will be transmitted, resulting in excessive levels of corrected information returns (i.e., Form 1099-B), causing taxpayers to file amended tax returns.