Several recent news articles have outlined the impact a delay in sending out 1099s to investors had on their ability to file taxes on time as the April 17 deadline approached. Something like this, undoubtedly, can cause a detrimental blow to client satisfaction levels of the brokers in question. These events are yet another example of why data accuracy is so important when it comes to cost basis reporting (CBR).
In addition, the fact that this year is the first time brokerages had to include adjusted cost basis on the 1099 forms, should have been a signal that extra due diligence is a must. Data accuracy is crucial when it comes to getting clients’ cost basis information on time for filing taxes.
Recently, we announced that Scivantage Maxit® retail and institutional clients using the custom 1099 tax extract module had a 100% success rate in getting their IRS Form 1099s out to investors on time and using accurate data, ahead of the Feb. 15, 2012, deadline, avoiding an influx of client complaints and maintaining their high standard of customer service.
Although it may look as if this year’s tax season is coming to a close, the new reality is that it is tax season year-round. Following the implementation of Phase 1 and 2 of the CBR regulations, experts believe the industry should expect to see an influx of corrections that brokers will be burdened with fixing. Having access to accurate data, through our Scivantage Maxit platform, will make it easier for firms to issue these corrections to their clients.
Scivantage Maxit is the only fully automated, real-time solution to provide accurate, adjusted cost basis reporting through a highly configurable platform. Maxit enables broker-dealers, mutual funds, custodians and prime brokers to streamline tax and portfolio reporting and deliver a superior client experience, while reducing operational costs and meeting regulatory requirements.