Back in October 2008 I wrote about a passage in the Emergency Economic Stabilization Act signed into law that requires cost basis reporting by securities brokers (see the original FPPad post).
Today I learned from this AICPA Journal of Accountancy tweet that the IRS has posted proposed regulations titled “Basis Reporting by Securities Brokers and Basis Determination for Stock” available for viewing on the Federal Register website.
Click here to view the PDF in all its 141 pages of glory.
I don’t quite have the time to browse the proposal right now, but thankfully the folks over at the AICPA JofA just posted a good summary of the proposal.
Click here to read the AICPA’s JofA Regulations Proposed on Basis Reporting by Brokers.
Update 12/21/2009: Also read this article Brokerages face 2011 start date for reporting cost-basis info from InvestmentNews.
However, there’s no real insight as to what exactly the proposal means for independent financial advisers. Hint: It probably doesn’t change much of anything, as custodians are likely to bear the brunt of the regulatory changes. If anything, that means custodial fees likely will go up.
The comment period for this proposal is open until February 8, 2010 and a public hearing is scheduled for February 17, 2010. That will be a barn-burner of a hearing!
