Does Dominion calculate my cost basis for shares purchased through Dominion Direct?
Effective January 1, 2011, Dominion is required to report certain new information annually to the Internal Revenue Service (IRS) for accounts subject to 1099-B reporting.
The new reporting requirement only applies to sales of Dominion stock purchased after January 1, 2011. For those shares, Dominion is required to report not only the standard gross proceeds information, but also cost basis and short/long term gain/loss information to you and the IRS on Form 1099-B. Unless you have indicated otherwise, Dominion will report your sales using the federally mandated default cost basis method of First In, First Out (FIFO), which assumes that the shares sold are those purchased earliest. Once you sell your Dominion stock, the cost basis method used to calculate your gains and losses cannot be changed. Therefore, it is important to consider the tax implications before you request a sale.
Dominion will not provide cost basis information for stock acquired prior to January 1, 2011 to either you or the IRS. We urge you to consult your own tax advisor for assistance with the calculation. Special tax issues may apply to some participants.
To assist you with calculating cost basis on shares acquired prior to January 1, 2011, Dominion has partnered with Networth Services to provide a hyperlink from Dominion’s Web site to NetBasis, an internet-based cost basis calculation system. For a fee, you can use NetBasis to calculate the cost basis for your stock. To use the system, you will need your purchase/acquisition/sales dates and the number of shares acquired and/or sold on those dates. The NetBasis system will do the rest, automatically adjusting for dividend reinvestment and any corporate actions.
Be sure to keep your year-end statements for income tax purposes. You may obtain copies of year-end statements for the previous five years for a fee of $5 per year. Also available is an account history from 1996 through last year for a fee of $25. To receive the historical information, send a letter of instruction. Include your account number or social security number, the name(s) on the account, the address, a phone number and e-mail address. Mail your letter and money order or certified check, made payable to Dominion Resources Services, Inc. to:
Dominion Resources, Inc.
Shareholder Services, 6th FL
P. O. Box 26532
Richmond, VA 23261-6532
If you have any questions or need additional information, please contact Shareholder Services via email at Shareholder.Services@dom.com or by phone at 1-800-552-4034 or (804) 775-2500 (Eastern Time). General historical pricing is available on the Internet at www.dom.com/investors/pdf/cost_basis.pdf.