In April of 2016, the IRS published proposed regulations providing that conversion rate adjustments (CRAs) on convertible instruments are deemed dividends and are subject to withholding by withholding agents. A comment period was scheduled ending 7/12/2016 in which seven comment letters were filed and posted to the docket on Regulations.gov. On 7/5/2016, the IRS published […]
Cost basis is a funny thing. Every investor knows a little something about it. Since 1913 it’s been the foundation for taxes on capital gains (I’m not absolutely certain about that date; but, really, who’s going to check?). It has appeared on statements and brokerage websites for years. It was almost always incorrect. The basic […]
The lesson here is to constantly keep abreast of innovation and client perspective. Being the best at what you do doesn’t matter much if customers don’t value what you do. Focusing on customer needs, not on specific products, is essential to achieving lasting success.
If you have ever invested in a bond, you will know that the terms of the bond are spelled out in excruciating detail. But have you ever wondered what happens if someone wants to change one of those terms?
In the enterprise and infrastructure software space, innovation is slower and development more costly. Still, users and purchasers of technology get excited about the promise of new technology and the positive effect they hope it will provide to them as well as their businesses.
After quickly putting in place major system upgrades to meet new cost basis regulations several years back, many financial services firms have now realized that their solutions were not necessarily scalable to their enterprise or sufficiently flexible to adapt to the ongoing evolution of the requirements. Yet, even when dissatisfied with their existing systems, some firms have been hesitant to convert to a different reporting solution because of the potential risk of new system limitations, the significant investments made in their first system, or the perceived effort required to undertake such a conversion.
With over 125 million IRS 1099s processed this season alone, Maxit’s sophisticated data management capabilities continue to set it apart, processing and managing high volumes of data to ensure cost basis accuracy and data consistency with a firm’s books and records.
As the investment industry continues meet IRS reporting requirements, firms face increasing costs for this regulatory compliance. Some firms are hoping to reduce resource requirements using additional automation for items such as corporate actions. Others are asking, “How else can I leverage my cost basis data to make this investment more valuable?” If your firm is grappling with either of these concerns, consider Scivantage Maxit.
With 2015 now underway, cost basis reporting is top-of-mind for brokers and investors as they comply with the complex mandates, and look to maintain operational efficiency. Bob Linville, Director of Product Management, Scivantage, helps to clarify the meaning of disallowed carryover offset in his most recent video – Reporting and Tracking Disallowed Carryover Offset – […]
The New Year traditionally marks a time when businesses look to reignite their company’s outlook and build momentum towards another successful and prosperous year. In 2015, however, brokers will once again be faced with a new wave of cost basis reporting mandates, and this isn’t something that many institutions are celebrating. For the first time, […]