The importance of accurate record-keeping cannot be overstated when reporting capital gains and losses on stocks, said Jennifer Jenkins, an Internal Revenue Service Field representative based in Columbus, Ohio.

"When it comes to taxes, the best offense can be a good defense," she said. "That equates to accurate record-keeping."

It's not always a simple task to establishing the cost basis of stocks and bonds if old stock certificates can't be found or when taxpayers have no documentation to prove the purchase price.

"Getting some help from a tax professional can help avoid the worst case scenario, which occurs when the basis is unknown or the taxpayer doesn't have proof -- specifically, written documentation -- of basis for a particular stock," Ms. Jenkins said. "In these cases, the IRS may assume the basis is $0."

If that happens, she said it's worthwhile considering donating the stock to a tax-exempt organization. A taxpayer who itemizes might be able to deduct the stock's current value as a charitable contribution rather than owing a hefty sum on capital gains taxes.

The capital gains tax rate was 20 percent prior to a change during the presidency of George W. Bush in 2001 and 2003. The 2003 change was related to the Alternative Minimum Tax (AMT).

For now the smart money is better off not making important investment decisions based on predictions and guesses related to what will happen with the tax code next year.

"With every investment you have to look at why you purchased it, and is it doing what you expected or what you wanted it to do given the economic situation," Ms. Skeans said.

"If people have stocks they really want to get rid of, I'd say go ahead and sell them and pay the 15 percent tax. But we don't know what 2012 will bring."