With all the new regulation impacting this year’s tax reporting season, we recently partnered with SunGard Wall Street Concepts for a Webinar to look at the future of fixed income and options reporting requirements. Artie Wolk, Senior Vice President, Product Strategy at SunGard Wall Street Concepts, and Cameron Routh, Senior Vice President, Managing Director Strategic Products at Scivantage, discussed lessons learned from the 2011 tax reporting season and how to tackle the next critical phase as it gets increasingly complicated with financial instruments such as Original Issue Discount (OID) securities. Based on the questions and feedback from the audience, it was evident that the first phase of cost basis generated issues and challenges related to data management.
Firms will need to make sure they can rely on their current technology systems to ensure compliance with the new rules. As we have already seen this year, it is imperative to prepare as early as possible in order to mitigate errors and service clients best.
As noted in our most recent announcement, 100% of Scivantage Maxit clients using our custom tax extract module were able to mail their 1099s by the IRS deadline of February 15, 2012. This was a result of proper preparation and looking at these new rules as a long-term project. In order to duplicate these results for the fixed income and options reporting requirements, it is imperative for brokerages to start preparing early to avoid any confusion and errors in the future.
Listen to a recording of the Cost Basis Reporting: Looking Ahead. A Critical Look at the Proposed Fixed Income & Options Reporting Requirements Webinar and let us know what you think!