Regulations: Effective date for certain broker reporting is extended to 2016

Effective date for certain broker reporting

The Treasury Department and IRS today released for publication in the Federal Register a correction to temporary regulations (released in March 2015) relating to reporting of certain information by brokers for transfers of debt instruments that are covered securities. The correction effectively postpones the effective date of the provisions of the temporary regulations requiring such reporting for transfers that occur on or after January 1, 2016.


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Originally, the March 2015 temporary regulations were intended to require reporting of certain information on a transfer statement effective for transfers of debt instruments that are covered securities on or after June 30, 2015. However, according to today’s release, the extended effective date is made in response to requests for additional time for this reporting. Read today’s correction [PDF 199 KB] to T.D. 9713


The temporary regulations (T.D. 9713) and, by cross-reference, proposed regulations (REG-143040-14) were issued in March 2015 concerning information reporting by brokers for:

  • Bond premium and acquisition premium
  • Transactions involving debt instruments and options, including:
    • The reporting of original issue discount (OID) on tax-exempt obligations
    • The treatment of certain holder elections for reporting a taxpayer’s adjusted basis in a debt instrument

Transfer reporting for section 1256 options and debt instruments

Previously, a broker did not have to provide a transfer statement for a section 1256 option, and did not have to provide the last date on or before the transfer date that the broker made an adjustment for a particular item relating to a debt instrument.

The March 2015 temporary regulations include provisions that require a broker to transfer this information for a section 1256 option transferred on or after January 1, 2016, and for a debt instrument transferred on or after June 30, 2015.

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