What is Form 8937?
Form 8937, Report of Organizational Actions Affecting Basis of Securities, is essential for corporations to communicate changes in the value of their securities. This form is crucial for investors, as it helps them update their investment records following events like stock splits, mergers, or distributions. By providing accurate information about the value of securities, Form 8937 ensures that both investors and the IRS are aligned, which is vital for tax compliance and informed decision-making regarding investments.
What is Form 8937 used for?
Form 8937 is important for those involved with securities. Here's what it is used for:
- Reporting Corporate Actions: For actions like mergers, acquisitions, and stock splits that change security values.
- Providing Tax Information: To notify the IRS and security holders about tax basis changes.
- Compliance with IRS: To ensure filing occurs within 45 days of the action.
- Public Disclosure: To make the report accessible on the issuer's site or a designated area.
How to fill out Form 8937?
- 1
Gather Information: Collect details about the organizational action affecting securities.
- 2
Enter Issuer's Details: Provide the issuer's name, EIN, and contact information.
- 3
Describe Action: In Part I, describe the organizational action and its effect on the basis of securities.
- 4
Include Required Information: Specify the type of action, date, and how the basis is adjusted.
- 5
Review for Accuracy: Ensure all information is correct before filing.
- 6
Submit Form: File the completed form with the IRS before the due date.
Who is required to fill out Form 8937?
Form 8937 is completed by issuers of specified securities, such as corporations, mutual funds, REITs, and regulated investment companies.
Individual taxpayers holding these securities use the form to determine the tax treatment related to organizational actions that affect their securities' basis.
When is Form 8937 not required?
Form 8937 is not required when all security holders are exempt recipients, including C corporations, charitable organizations, or foreign holders. It’s also unnecessary if the relevant information is available on a primary public website for 10 years or if an S corporation reports basis information on each shareholder's Schedule K-1. Understanding these exceptions can save you time and effort during tax season.
When is Form 8937 due?
The deadline for Form 8937 is within 45 days after the organizational action affecting the basis of securities occurs. It's important to file the completed form with the IRS and ensure it is accessible to the public on the issuer's website or at a designated location.
How to get a blank Form 8937?
To get a blank Form 8937, simply visit our website. The Internal Revenue Service issues this form, and we have a pre-loaded version ready for you to fill out. Remember, PDF Guru assists with filling and downloading forms, but does not support filing them.
How to sign Form 8937 online?
To sign Form 8937, Report of Organizational Actions Affecting Basis of Securities, you must provide a handwritten signature, as electronic and digital signatures are not accepted. This form requires a declaration under penalties of perjury, making it essential to complete this step manually. After filling out the form using PDF Guru, remember to check for any updates and download your completed document, as our platform does not support submission.
Where to file Form 8937?
Form 8937 must be mailed to the IRS. Ensure it is signed before sending, as electronic submission is not an option.
If you don't file it with the IRS, post the form on your company's main public website to comply with regulations.
