I 
109TH CONGRESS 
2D SESSION 
H. R. 5367 
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 HOUSE OF REPRESENTATIVES 
MAY 11, 2006 
Mr. EMANUEL (for himself, Mr. MORAN of Virginia, and Mr. JEFFERSON) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to require 
broker reporting of customer’s basis in securities trans-
actions, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Simplification Through 
Additional Reporting Tax Act of 2006’’. 
SEC. 2. BROKER REPORTING OF CUSTOMER’S BASIS IN SE-
CURITIES TRANSACTIONS. 
(a) IN GENERAL.—Section 6045 of the Internal Rev-
enue Code of 1986 (relating to returns of brokers) is 
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amended by adding at the end the following new sub-
section: 
‘‘(g) ADDITIONAL INFORMATION REQUIRED IN THE 
CASE OF SECURITIES TRANSACTIONS.— 
‘‘(1) IN GENERAL.—If a broker is otherwise re-
quired to make a return under subsection (a) with 
respect to any applicable security, the broker shall 
include in such return the information described in 
paragraph (2). 
‘‘(2) ADDITIONAL INFORMATION REQUIRED.— 
‘‘(A) IN GENERAL.—The information re-
quired under paragraph (1) to be shown on a 
return with respect to an applicable security of 
a customer shall include for each reported ap-
plicable security the customer’s adjusted basis 
in such security. 
‘‘(B) EXEMPTION FROM REQUIREMENT.— 
The Secretary shall issue such regulations or 
guidance as necessary concerning the applica-
tion of the requirement under subparagraph (A) 
in cases in which a broker in making a return 
does not have sufficient information to meet 
such requirement with respect to the reported 
applicable security. Such regulations or guid-
ance may— 
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‘‘(i) require such other information re-
lated to such adjusted basis as the Sec-
retary may prescribe, and 
‘‘(ii) exempt classes of cases in which 
the broker does not have sufficient infor-
mation to meet either the requirement 
under subparagraph (A) or the require-
ment under clause (i). 
‘‘(3) INFORMATION TRANSFERS.—To the extent 
provided in regulations, there shall be such ex-
changes of information between brokers as such reg-
ulations may require for purposes of enabling such 
brokers to meet the requirements of this subsection. 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the term ‘applicable security’ means any— 
‘‘(A) security described in subparagraph 
(A) or (C) of section 475(c)(2), 
‘‘(B) interest in a regulated investment 
company (as defined in section 851), or 
‘‘(C) other financial instrument designated 
in regulations prescribed by the Secretary.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to returns the due date for which 
(determined without regard to extensions) is after Decem-
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ber 31, 2008, with respect to securities acquired after De-
cember 31, 2007. 
Æ 
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