Capital Gains Reporting

AICPA Strives to Improve New IRS Form 8949

The IRS revised a information that contingency be enclosed when filing a Schedule D for 2011 due to a law that requires the basement of a confidence be disclosed when a taxpayer reports a information for last collateral benefit or loss.

Many practitioners are endangered that a brokers’ information being reported on a 1099B includes unintended errors  in separating lonesome and unclosed bonds on Form 8949 due to a information acclimatisation compulsory to finish a form.

The IRS combined this new form as a outcome of a law enacted in 2008 that requires brokers to record an information lapse stating a basement of a “covered security” in further to a benefit or loss.” The lapse contingency embody a customer’s practiced basement in a confidence and mention either any benefit or detriment with honour to a confidence is brief tenure or prolonged term.  This information is compulsory to be minute as a partial of a Form 1099-B that all brokerage business receive.

However, given all brokers forms 1099-B are not uniform and any is presenting a information differently a time and cost of tracking any transaction has significantly combined to a correspondence weight on taxpayers and their taxation lapse preparers.  The time to modify this information into Form 8949 has proven to be significantly larger than IRS, a Office of Management and Budget, or anyone else had anticipated.   

The AICPA is endangered that errors in a 1099 B Forms impacting on  cost basis, sum proceeds, gain/loss and holding duration will outcome in errors..  However, since a information might not be entrance by in a correct bucket, a intensity for large numbers of nonessential CP2000 notices exists.

A charge force comprised of both a AICPA IRS Practice Procedures Committee and a Individual Technical Resource Panel is intent in discussions with a IRS to residence a array of issues that we wish will lead to a clearer bargain and a some-more uniform proceed to how a 1099-B information should be displayed so that a turn of coherence will outcome for all brokerage firms.

About Emil Estafanous, CPA
Certified Public Accountant (CPA) Tax Professional committed in representing taxpayers and resolving their tax problems.

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