x-comment letter basis v2

Louis T. Mazawey (202) 861-6608 ltm@groom.com Elizabeth T. Dold (202) 861-5406 edold@groom.com June 30, 2009 Internal Revenue Service Office of Associate Chief Counsel (Procedure & Administration) CC:PA:LPD:PR (Notice 2009-17), Room 5203 P.O. Box 7604 Ben Franklin Station Washington, DC 20044 RE: Information Reporting of Customer's Basis in Securities Transactions (Notice 2009-17) Dear Mr. Schaeffer: On behalf of our clients, and in response to Notice 2009-17, we would like to request special consideration of the impact of sections 6045(g), (h), 6045A, and 6045B of the Internal Revenue Code of 1986, as amended (the "Code"), enacted as part of the Energy Improvement and Extension Act of 2008 (Act), to employers providing equity based compensation to their employees so that the new rules in this area will not be superimposed on such programs. For 35 years, Groom Law Group, Chartered, a Washington law firm, has specialized in employee benefits law. Groom's national client base includes a diverse group of Fortune 500 corporations and financial institutions who offer employees a wide array of equity based compensation programs and handle plan administration and tax compliance functions. As more fully described below, equity based compensation comes in a variety of forms, each with its own intricate taxation and reporting requirements. Specifically, employer stock acquired through compensation arrangements is subject to a variety of: (1) ...