OppenheimerFunds, Inc. Selects Wolters Kluwer Financial Services’ GainsKeeper to Help Meet New Requirements of Cost Basis Reporting Law

13 January 2009

Wolters Kluwer Financial Services announced today that OppenheimerFunds, Inc. (OFI) has implemented its GainsKeeper® tax lot accounting technology to help meet requirements of the newly enacted cost basis reporting law.

The law, which was passed last October as part of the Emergency Economic Stabilization Act of 2008, requires financial institutions to report adjusted basis information for covered securities to the Internal Revenue Service (IRS) and their customers. Because of the complexities related to cost basis reporting, many firms are considering how they will develop and/or implement a cost basis system that will meet the new requirements. OFI began implementing the GainsKeeper system prior to the law’s passing to ensure the firm would be ready to meet the requirements and their customers’ needs.

“We are very excited to work with OppenheimerFunds and help them stay ahead of the curve in terms of preparing for the new law’s effective dates,” said Chuck Ross, general manager for GainsKeeper. “Since the law will likely require many firms to undergo significant system overhauls that could take many months, OppenheimerFunds is extremely well-positioned to comply with the law and help investors address challenging cost basis issues.”

“In examining the law’s potential requirements and knowing that we could leverage GainsKeeper’s tax expertise and technology, it was clear this partnership would be very beneficial to our organization and our clients,” said Christine Polak, vice president of Operations at OppenheimerFunds, Inc. “We were impressed with GainsKeeper’s ability to provide detailed cost basis and capital gains calculations, allowing us to automate a complex process and have ample lead time in preparing for the new cost basis reporting law.”

The new law will apply to stock acquired on or after Jan. 1, 2011; open-end mutual fund and dividend reinvestment plan stock acquired on or after Jan. 1, 2012; and debt instruments, options and other covered securities acquired on or after Jan. 1, 2013.

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