Recently, the IRS requires transfer agents to qualify the cost basis of every new issuance from an issuer. In addition, the issuer is to provide the social security or tax id number for each shareholder in which stock is issued.
When subpoenaed, the IRS will have the list of all shareholders issued stock in the distribution including the SS/TID, phone numbers, addresses, and cost basis. If the TA failed to comply, the IRS will alert the SEC.
Shareholders could be flagged? Is this distribution worth the headache?
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