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Important information about cost basis

New forms available to accommodate cost basis information

The new mandatory cost basis rules, part of the Energy Improvement and Extension Act of 2008 (EESA), took effect January 1, 2012, and apply to any shares acquired after that date that are then sold or exchanged at a later date.

Under the EESA requirements, MFSC is now required to report cost basis to the IRS on shareholders' 1099-B reportable accounts inclusive of S-corporations on all dispositions of shares (those shares sold or exchanged from an account). MFSC will report this information to the IRS only if the disposition of shares depletes shares within an account that were acquired after January 1, 2012. Please note that if a shareholder has not notified MFSC of their cost basis method election, we have applied the Average Cost Basis method to their account, in accordance with the Fund's default method. 

The EESA requirements also require MFSC to obtain certain information from a shareholder prior to processing any requests that result in a disposition of shares. As a result, MFSC has updated our forms to be able to capture all of the required information. Therefore in order to avoid any delay in the processing of requests, it is important that a shareholder submit any request to sell or transfer shares on the most up to date MFS form.  You may obtain these forms under the Forms & Application tab on mfs.com. 

In addition, you as the broker of record for your shareholder will be able to provide cost basis information to MFSC via Vision.  This functionality is available to you now.  

The Web site also offers fund shareholders a suite of informational resources on the new cost basis reporting requirements effective January 1, 2012 inclusive of the cost basis options brochure on our Web site.  You may access these resources simply by going to the Tax Center on the home page or by clicking the link below. Please contact MFS at 1-800-343-2829 if you have any questions.