In late July, IRS issued a Notice stating that, for marketing loans repaid on or after January 1, 2007, information reporting will be required. The information reporting requirement now applies to all four methods of paying marketing loan benefits (loan deficiency payments, Commodity Credit Corporation (CCC) loans repaid with cash, CCC loans repaid with generic commodity certificates and forfeiture of commodities to CCC under non-recourse loans) under the federal commodity subsidy program. Previously, IRS had not required the repayment of CCC loans with generic commodity certificates to trigger the issuance of Form 1099 to the IRS or to the taxpayer. The other three methods or receiving the benefits – loan deficiency payments, CCC loans repaid with the cash and forfeiture of commodities to CCC – have always been subject to information reporting on Form 1099-G. IRS also stated that, for taxpayers that have elected to treat CCC loans as income, the market gain can be accounted for in the year in which the CCC loan is repaid. Such accounting is accomplished by making an adjustment to the basis of the commodity that secures the loan. The taxpayer’s basis in the commodity before the repayment of the loan is equal to the amount of the loan previously reported as income. The basis is reduced by the amount of market gain, if any, associated with the repayment of the loan. IRS Notice 2007-63, I.R.B. 2007-33.