Enhanced capabilities enable clients to meet new cost basis reporting mandates
Scivantage, an independent financial technology provider with proven expertise in online brokerage, tax and portfolio reporting and wealth management applications, announced today the extension of its Scivantage Maxit® tax lot accounting system to now include fixed income and options capabilities for TARP III cost basis reporting compliance.
Earlier this year, the IRS released the final and most complex phase of the cost basis reporting regulations. In order to ensure clients are compliant ahead of the January 1, 2014, deadline, Scivantage Maxit leverages an integrated toolset combining cost basis, back office and tax reporting systems. By unifying these traditionally distinct structures, Scivantage Maxit reduces ongoing and end-of-year reconciliation issues.
Scivantage already fully supports options cost basis processing, and has extended Scivantage Maxit’s fixed income support to include the following:
- Original Issue Discount (OID)
- Market Discount
- Acquisition Premium
- Bond Premium
- Nonqualified Stated Interest
- Deferred to Interest
- Principal Paydown
“TARP III cost basis reporting requirements are extremely complex and with the addition of the customer elections, among other new developments, firms who do not begin preparing and streamlining their operations will struggle to meet the IRS regulatory requirements,” said Job Dennison, Senior Vice President, Investment Reporting at Scivantage. “Fixed income instruments ultimately have more taxable events than equities, potentially creating a significant increase in the volume of transaction processing. We have been anticipating these final regulations and provide our clients with a comprehensive solution to ensure they will continue to be able to confidently meet the cost basis reporting mandates with ease.”
For two consecutive years, Scivantage Maxit clients had a 100% success rate in getting their IRS Form 1099s out to investors on time, meeting the deadlines for TARP I and II cost basis reporting regulations while avoiding costly errors. Scivantage Maxit is the only fully automated, real-time solution that provides accurate, adjusted cost basis reporting through a highly configurable platform. Scivantage 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.