IRS provides transitional relief for issuer returns due January 17, 2012
Global Information Reporting & Withholding Newsbrief()
On January 13, 2012, the IRS provided transitional relief for the information reporting requirements that apply to issuers of specified securities that engage in organizational actions that affect the basis of stock. Notice 2012-11 provides that posting Form 8937, Report of Organizational Actions Affecting Basis of Securities, on the issuer's primary public website by January 17, 2012 will satisfy the filing obligations with respect to organizational actions occurring in 2011. Alternatively, the issuer can choose to file Form 8937 with the IRS and furnish corresponding shareholder statements to each shareholder's nominee (or to each shareholder if there is no nominee) by the applicable due date. Further, the notice provides that the IRS will not impose penalties for reporting incorrect information, provided that issuers make a good-faith effort to post or file the required information by the due date. The transitional relief is limited to organizational actions occurring in 2011.