§6045B Returns Relating to Actions Affecting Basis of Specified Securities

Summary

Issuers of certain securities must file a report, on the IRS form or in the way the IRS tells them, that explains any company action that changes the security’s cost basis, states how much the basis changes, and gives any other information the IRS requires. That report is due by the earlier of 45 days after the action or January 15 of the next year. The issuer must also give a written notice to the nominee (or the certificate holder if there is no nominee) with a contact name, address, phone number, the same report information, and any other required details. A "specified security" is a type of security defined elsewhere in the tax code. No report is needed for actions that happened before that security’s applicable date. The IRS can waive the filing and notice rules if the issuer makes the contact and report information publicly available in the form and manner the IRS requires.