The IRSÂ released on its website Form 8937, Report of Organizational Actions Affecting Basis of Securities, and its Instructions. The Instructions include details on who must file the form and how certain entities can otherwise satisfy their organizational action reporting obligations.
New Form and Instructions
The Form 8937 contains two parts. Part I consists of the identifying information of the reporting issuer, the date and classification of the relevant action and other information, such as account numbers and ticker symbol. Part II requests more detailed information about the organizational action, including the quantitative effect of the action on the basis of the security in the hands of a U.S. taxpayer, how that change is calculated, the Code sections implicated by the action, whether any resulting loss can be recognized and any other relevant information.
The instructions to Form 8937 also include who must file. Form 8937 must be filed by an issuer of a specified security that takes an organizational action that affects the basis of all holders of the security (or all holders of a class of the security). An example of such an action includes a nontaxable cash or stock distribution to shareholders. The form is filed for a distribution of property to shareholders only if the issuer knows that the distribution will not be taxable as a dividend.
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