II 

110TH CONGRESS 

1ST SESSION S. 601 

To amend the Internal Revenue Code of 1986 to require broker reporting 

of customer’s basis in securities transactions, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 14, 2007 

Mr. BAYH (for himself, Mr. COBURN, Mr. OBAMA, Mr. LEVIN, Mr. KERRY, 

Mr. CARPER, Mr. DURBIN, Mrs. FEINSTEIN, Mr. SCHUMER, Ms. 

KLOBUCHAR, Mr. LIEBERMAN, Mr. BIDEN, Mr. BROWN, Ms. STABENOW, 

Mrs. CLINTON, Mr. LEAHY, and Mr. KENNEDY) introduced the following 

bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to require 

broker reporting of customer’s basis in securities transactions, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Simplification Through 

5 Additional Reporting Tax Act of 2007’’. 


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1 SEC. 2. BROKER REPORTING OF CUSTOMER’S BASIS IN SE2 CURITIES TRANSACTIONS. 

3 (a) IN GENERAL.—Section 6045 of the Internal Rev4 enue Code of 1986 (relating to returns of brokers) is 

5 amended by adding at the end the following new sub6 section: 

7 ‘‘(g) ADDITIONAL INFORMATION REQUIRED IN THE

8 CASE OF SECURITIES TRANSACTIONS.— 

9 ‘‘(1) IN GENERAL.—If a broker is otherwise re10 quired to make a return under subsection (a) with 

11 respect to any applicable security, the broker shall 

12 include in such return the information described in 

13 paragraph (2). 

14 ‘‘(2) ADDITIONAL INFORMATION REQUIRED.— 

15 ‘‘(A) IN GENERAL.—The information re16 quired under paragraph (1) to be shown on a 

17 return with respect to an applicable security of 

18 a customer shall include for each reported ap19 plicable security the customer’s adjusted basis 

20 in such security. 

21 ‘‘(B) EXEMPTION FROM REQUIREMENT.— 

22 The Secretary shall issue such regulations or 

23 guidance as necessary concerning the applica24 tion of the requirement under subparagraph (A) 

25 in cases in which a broker in making a return 

26 does not have sufficient information to meet 


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1 such requirement with respect to the reported 

2 applicable security. Such regulations or guid3 ance may— 

4 ‘‘(i) require such other information re5 lated to such adjusted basis as the Sec6 retary may prescribe, and 

7 ‘‘(ii) exempt classes of cases in which 

8 the broker does not have sufficient infor9 mation to meet either the requirement 

10 under subparagraph (A) or the require11 ment under clause (i). 

12 ‘‘(3) INFORMATION TRANSFERS.—To the extent 

13 provided in regulations, there shall be such ex14 changes of information between brokers as such reg15 ulations may require for purposes of enabling such 

16 brokers to meet the requirements of this subsection. 

17 ‘‘(4) DEFINITIONS.—For purposes of this sub18 section, the term ‘applicable security’ means any— 

19 ‘‘(A) security described in subparagraph 

20 (A) or (C) of section 475(c)(2), 

21 ‘‘(B) interest in a regulated investment 

22 company (as defined in section 851), or 

23 ‘‘(C) other financial instrument designated 

24 in regulations prescribed by the Secretary.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to returns the due date for which 

3 (determined without regard to extensions) is after Decem4 ber 31, 2009, with respect to securities acquired after De5 cember 31, 2008. 

Æ 


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