Vanguard Brokerage Services says "the IRS has introduced regulations that require investment companies to report cost-basis information for certain types of investments held in nonretirement accounts." I believe the cost-basis information reporting for any investment will be triggered by the sale of that investment.
Where can one find more details on the IRS requirements.
I am interested in whether MLPs are one of the investments for which reporting is required. Also, Vanguard says it will offer only 2 options for reporting cost basis - FIFO or Specific Lot Identification. Apparently no Average Cost. Does the IRS no longer allow Average Cost, or is this a limitation applied by Vanguard.
Any and all information will be appreciated.