Recently, we held a breakfast roundtable on cost basis reporting (CBR) at the Harvard Club in New York City. At the event, titled “Cost Basis Reporting: Where Are We Now?”, we discussed the state of the industry post Phase 1 implementation of the new Internal Revenue Service (IRS) CBR regulations. The panel consisted of Isabella Fonseca and Alexander Camargo of Celent, Dan Mayo from KPMG and myself, and was moderated by Scivantage’s Dave Hagen.
In addition to speaking about the current state of cost basis reporting and delving into specific CBR-related questions, Isabella and Alexander presented the findings of their recent research paper offering insight into the post-implementation environment, best practices and lessons learned, as well as a look ahead to Phase 2 and Phase 3 of the IRS rules.
Attendees found the event to be timely, as it took place the day after the IRS issued interim guidance under 1012 of the Internal Revenue Code on issues relating to the basis of stock. In addition to discussing the new guidance, the panel along with audience participation addressed various issues, including:
– The surprising number of firms in the industry that will undergo a second search and selection process in 2011 for a long-term CBR solution, after selecting a short-term fix for the 2011 tax season
– The need for a CBR system that offers fast implementation and easy integration – The specific functionalities firms are looking for when selecting a cost basis reporting system