Simplification Through Additional Reporting Tax Act of 2006

H.R. 5367, the Simplification Through Additional Reporting Tax Act of 2006, would require investment brokers to report the "adjusted basis" (the original cost plus or minus certain adjustments) of a security when it is sold by a customer. Under this proposal, brokers would be responsible for providing this cost information to both the taxpayer and the IRS, rather than leaving the burden of tracking and calculating those figures solely to the individual investor. This change is intended to simplify the tax filing process for citizens by ensuring they have accurate data to calculate capital gains or losses on their tax returns.