12 2 STA T .385 8 PUBLIC LA W 11 0– 3 4 3 —O CT. 3 , 2008 shal l bed e t e rmin ed u sin go neo f the methods w hi c hma y be used for determining the basis of stoc k inano p en - end fund .‘ ‘ (2)TREATM E N TA F TER TRAN S FER. —I n the case of the transfer to another account of stock to which paragraph ( 1 ) applies , such stock shall ha v e a cost basis in such other account e q ual to its basis in the dividend reinvestment plan imme- diately before such transfer (properly ad j usted for any fees or other charges taken into account in connection with such transfer). ‘‘( 3 ) S E P ARATE A C C OU NTS
E L ECT I ON FOR TREATMENT AS SIN G LE ACCOUNT.— R ules similar to the rules of subsection (c)(2) shall apply for purposes of this subsection. ‘‘( 4 ) D I V I D END REINVESTMENT PLAN.— F or purposes of this subsection— ‘‘( A ) IN GENERAL.—The term ‘dividend reinvestment plan ’ means any arrangement under which dividends on any stock are reinvested in stock identical to the stock with respect to which the dividends are paid. ‘‘( B ) INITIAL STOC K AC Q UISITION TREATED AS ACQUIRED IN CONNECTION W IT H PLAN.—Stock shall be treated as acquired in connection with a dividend reinvestment plan if such stock is acquired pursuant to such plan or if the dividends paid on such stock are subject to such plan.’’. (c) INFORMATION BY TRANSFERORS TO AID BROKERS.— (1) IN GENERAL.—Subpart B of part III of subchapter A of chapter 6 1 is amended by inserting after section 6 0 4 5 the following new section
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‘ SEC.6045A . INFORM A T ION RE QU IRE D IN CONNECTION W IT H TRANS - FERS OF CO V ERED SECURITIES TO B RO K ERS. ‘‘(a) FURNISHING OF INFORMATION.— E very applicable person which transfers to a broker (as defined in section 6045(c)(1)) a security which is a covered security (as defined in section 6045(g)(3)) in the hands of such applicable person shall furnish to such broker a written statement in such manner and setting forth such informa- tion as the Secretary may by regulations prescribe for purposes of enabling such broker to meet the requirements of section 6045(g). ‘‘(b) APPLICABLE P ERSON.—For purposes of subsection (a), the term ‘applicable person’ means— ‘‘(1) any broker (as defined in section 6045(c)(1)), and ‘‘(2) any other person as provided by the Secretary in regulations. ‘‘(c) TIME FOR FURNISHING STATEMENT.—E x cept as otherwise provided by the Secretary, any statement required by subsection (a) shall be furnished not later than 15 days after the date of the transfer described in such subsection.’’. (2) ASSESSABLE PENALTIES.—Paragraph (2) of section 6 7 24(d), as amended by the H ousing Assistance Tax Act of 200 8 , is amended by redesignating subparagraphs (I) through (DD) as subparagraphs ( J ) through (EE), respectively, and by inserting after subparagraph (H) the following new subpara- graph: ‘‘(I) section 6045A (relating to information required in connection with transfers of covered securities to bro- kers),’’. (3) C LERICAL AMENDMENT.—The table of sections for sub- part B of part III of subchapter A of chapter 61 is amended Ante,p.291 1. A pp licab ili ty .
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