Disclaimer: This is part of a series of posts that forum moderators have identified as containing “bogus information.”
A memo from the Secretary of the Treasury reveals what is behind the IRS push to have taxpayers list every individual stock sale transaction on Schedule D. Dated October 10, 2005, the memo was made public in response to a Freedom of Information Act request by the National Association of Public Accountants.
The memo details a plan for the Securities and Exchange Commission to review Schedule D listings for patterns of insider trading. Tax returns are the only records that tie groups of sales to individual stockholders identified by date. The SEC has developed large databases of information about acquisitions, reorganization, changes in top management, and product releases—the most common triggers for insider trading.
The Secretary dismisses concerns about the confidentiality of tax returns by pointing to the importance of protecting capital markets as a matter of national security.
A memo from the Secretary of the Treasury reveals what is behind the IRS push to have taxpayers list every individual stock sale transaction on Schedule D. Dated October 10, 2005, the memo was made public in response to a Freedom of Information Act request by the National Association of Public Accountants.
The memo details a plan for the Securities and Exchange Commission to review Schedule D listings for patterns of insider trading. Tax returns are the only records that tie groups of sales to individual stockholders identified by date. The SEC has developed large databases of information about acquisitions, reorganization, changes in top management, and product releases—the most common triggers for insider trading.
The Secretary dismisses concerns about the confidentiality of tax returns by pointing to the importance of protecting capital markets as a matter of national security.
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