IR-2010-104, Oct. 12, 2010

Washington - The IRS or Internal Revenue Service releases new policies with regards to the submission of basis and information by stock holder and individual funding companies for the stock their purchased in the year 2011, 2012 and the up-coming years. The submission of reports will be held to the investors and IRS.

The good news here is the optional submission of report with regards to the stock purchased before these dates started. IRS Commissioner Doug Shulman said "This important reporting change means investors will now receive the information they need to more easily and accurately report their gains and losses". Plus, "We will continue to work closely with stakeholder groups to ensure a smooth implementation of the new requirement, which reduces the record keeping and paperwork burden for millions of taxpayers.
These said policy is now posted on Federal Register, which they will implement the provision of Energy Improvement and Extension Act of 2008. On the other hand, to this new policy there are certain taxpayer who will be subjected to the submission of requirements, what kind of transactions they need to report and additional information that needs reporting.

The Form 1099-B, continues the Broker and Barter Exchange Transactions, being used in reporting sales prices, will continuously use for the coming 2011 to summarize cost of  stock basis, and sold fund shares, or exchanged shares during the whole year.  It can be used by stock brokers and fund companies to expand their yearend reports.

This updated form is designed to report long term transactions whether it is gain or losses (held more than one year) or short term (held one year or less). The updated form is said to be used for the first calendar year 2011 sales – it was necessary to file with the IRS and distributed to the investors in early 2012.

On behalf of the IRS they offer penalty relief for stock brokers and investors if they submit a report regarding stock transfer for the year 2011.