Fund Firms Prepare for Cost Basis Intricacies

June 7, 2010

The cost-basis reporting requirements are going to be a quagmire for shareholders and fund complexes alike. 'Many mutual fund shareholders are invested in more than just mutual funds,' said Jeff Cook, director of regulatory compliance at DST Systems. 'These new rules bring every existing shareholder into play.' The changes to the Internal Revenue Service's Form 1099-B represent an entirely new method of managing accounts and are intended to curtail what is thought to be widespread tax avoidance.

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