Recap: Cost Basis Reporting Roundtable Event

Recently, we hosted a panel discussion titled “Cost Basis Reporting: Looking Ahead” for our clients, partners and industry members. Turns out, we couldn’t have picked a better time, as the IRS happened to extend the deadline for Phase 3 of the cost basis reporting regulation by one year that same week, which raised some questions and concerns.

Our own Greg Alves, VP of Cost Basis, along with Martin Bentsen, Senior Advisor at the Cost Basis Practice at Jordan & Jordan, and other esteemed representatives from various firms including Fidelity Institutional, Pricewaterhouse Coopers, Deutsche Bank and SunGard WallStreet Concepts, discussed a variety of cost basis topics. One of the main points everyone seemed to agree on was that firms should use this extra time allotted by the IRS to learn about the differences presented in Phase 3 with more complex instruments – options and fixed income. Further, all industry participants should take this time to consolidate their cost basis operations and technology, and run additional quality  assurance to be fully prepared.

In addition, there was some great discussion around the lessons learned from the 2011 tax reporting season, covering everything from resource readiness and technology integration to data processing and the impact on client service. It was helpful to hear some feedback from our clients and partners on how they fared through Phase 1 and Phase 2. In fact, clients using our custom 1099 tax extract module in Maxit had a 100% success rate in getting their IRS Form 1099s out to investors on time.

We also spent some time talking about the best ways to apply what we learned to Phase 3, as we look ahead at the fixed income and options reporting requirements. To which point, we’d like to get your opinion on the IRS delay. Please answer our polling question below.

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