Investment Compliance Solutions. Corporate Actions Taxability Management

Transcription

1 Ivestmet Compliace Solutios Corporate Actios Taxability Maagemet

2 Corporate Actios Taxability Maagemet The rules have chaged Whe it comes to corporate actios coverage for tax reportig purposes, the rules have chaged. As a result of the cost basis reportig law whether you are a tax, legal or operatios professioal resposible for corporate actios processig, you ow eed detailed corporate actios taxability iformatio to adjust the basis of covered foreig ad domestic securities whe reportig the sales of those securities, to provide accurate 1099-B ad trasfer reportig iformatio to your customers ad to the IRS or you ll face sigificat pealties. Maage the chage i this ew world of tax Traditioally, tax ad legal professioals relied o cotet-rich tools ad resources for corporate actios aalysis ad tax accurate details. With cost basis reportig ow law, more tha ever they will eed this i-depth expert cotet for accurate corporate actios taxability determiatios ad corporate actios processig. Avoid sigificat ocompliace pealties $200 per iaccurate Form 1099-B up to a $3mil aggregate aual limit (plus iterest) If due to itetioal disregard, 10% of what should have bee reported with o aual maximum limit Prior to the cost basis law, broker operatios professioals typically applied simplified accoutig methods that did ot have to be tax accurate to process evets. Because the cost basis law geerally madates tax accurate corporate actios adjustmets, these simplified methods will o loger suffice. I fact, operatios professioals icreasigly eed access to the expert cotet relied upo by tax ad legal departmets for detailed corporate actios tax iformatio to process evets. Optimally, broker operatios departmets will have techology that automates delivery of these essetial foreig ad domestic corporate actios tax details to upload directly ito their portfolio accoutig systems to adjust the basis of the securities held by their orgaizatios.

3 Get the right tools for foreig ad domestic coverage Additioally, operatios ad customer service groups eed basis calculators to fill year-ed 1099 ad year-roud trasfer reportig gaps, as well as to provide customers with cost basis iformatio for ocovered securities. Sice the cost basis law sigificatly raises the tax accuracy requiremets for processig corporate actios, it is essetial that risk ad operatios maagers pla ad budget for the ew tools ad additioal resources that are ow ecessary for cost basis reportig compliace to reduce pealty risk exposure for their orgaizatios. Get the corporate actios tax details you eed for cost basis reportig compliace At Wolters Kluwer Fiacial Services, tax accuracy is paramout. That s why we cotiuously embed our solutios with tax-accurate expertise ad fuctioality. Tax, legal ad operatios professioals at blue chip brokerage firms cout o us for uparalleled foreig ad domestic corporate actios tax cotet ad sophisticated techology icludig a basis calculator, for ivestmet tax reportig ad compliace with the cost basis reportig law. Our solutios iclude: Capital Chages I-depth corporate actios tax aalysis, commetary ad rich taxability details Corporate Actios Taxability Service Automated delivery of fielded taxability iformatio for cost basis reportig BasisPro Cost basis ad wash sale calculator

4 Corporate Actios Taxability Maagemet Capital Chages I-depth corporate actios aalysis, commetary ad rich taxability details Capital Chages provides rich ad comprehesive tax cotet which covers daily ad historical U.S. ad iteratioal corporate evets, icludig aalysis, commetary ad taxability determiatios. Thousads of tax, legal ad corporate actios professioals resposible for reviewig, researchig ad bookig evets at leadig brokerage, bakig, ivestmet maagemet ad legal orgaizatios already rely o Capital Chages to facilitate tax accurate reportig. More tha ever, with cost basis reportig ow law, tax professioals as well as broker operatios teams, eed this i-depth taxability cotet to assist with compliace. You ca access this rich cotet via olie subscriptio services or via direct data feeds. Daily subscribers have access to our expert editorial staff, ad real-time alert otificatios for evets of iterest are also available. Capital Chages delivers: Daily Olie Subscriptios Historical Olie Subscriptios Direct Data Feeds (DDF) Compass Alert Service Issuer Reportig Service I-depth, corporate actios cotet ad tax details Rich tax aalysis ad commetary with detailed taxability codes Reliable retur of capital ad taxability iformatio No-cash divideds tax details Sec. 302 ad PFIC iformatio Extesive historical data Newly Added: Security tax classificatio Newly Added: Issuer statemet coverage

5 Get the right tools for foreig ad domestic coverage Corporate Actios Taxability Service Automated delivery of fielded taxability iformatio for cost basis reportig Eve before cost basis reportig became law, oe of the most challegig aspects of processig corporate actios was icorporatig the resultig ad ofte complex basis related adjustmets typically described i corporate actio tax opiios ito operatios portfolio accoutig systems. Our Corporate Actios Taxability Service automates targeted coverage of the tax cosequeces of foreig ad domestic corporate actios to assist with basis adjustmets for cost basis reportig. This highly customizable service simplifies access to the corporate actios tax details that you eed to process evets impactig the foreig ad domestic securities you hold. You simply specify ad upload your foreig ad domestic securities of iterest (SOI) ito our system. Leveragig data from SIX Telekurs ad Capital Chages, this service the applies a rules-based logic to determie taxability for corporate actios affectig your SOI. O a daily basis, you ca create corporate actios taxability XML data files to upload ito automated portfolio accoutig systems to adjust the basis of your SOI, ad you ca also produce custom taxability reports for processig ad validatig. This flexible service allows you to update ad cotiuously customize your SOI to esure that you have access to the corporate actios tax cosequeces you eed for cost basis reportig. Our Corporate Actios Taxability Service icludes: FCATS Foreig Corporate Actios Taxability Service DCATS Domestic Corporate Actios Taxability Service Automated foreig ad domestic corporate actios tax determiatios Specify ad upload your foreig ad domestic Securities of Iterest (SOI) ito the system Create custom corporate actios views Geerate daily, corporate actios taxability XML data files to upload ito your portfolio accoutig system Export corporate actios taxability iformatio ito custom reports for processig ad validatig Access the key taxability attributes behid the corporate actios BasisPro Cost basis ad wash sale calculator BasisPro is a cost basis ad wash sale calculator that offers a simple way to calculate cost basis iformatio, savig time ad miimizig iaccuracies i basis reportig. Leveragig our sophisticated GaisKeeper techology ad our expert corporate actios cotet, BasisPro adjusts basis for corporate actios ad wash sales for tax reportig. Already supportig umerous accoutats, operatios departmets ad customer support groups at leadig fiacial services firms, BasisPro offers a efficiet way for you to meet the cost basis law trasfer reportig requiremets whe basis is ot provided. BasisPro ca also be used to fill missig basis gaps for year-ed 1099 reportig. Quick ad accurate access to basis iformatio U.S. equities ad mutual fuds Historical calculatios back to 1950 Price ad DRP estimates for cash divideds as far back as 1973 Kow the law The cost basis reportig law requires brokers to provide detailed securities cost basis iformatio to the IRS ad to taxpayers, begiig with stock acquired o or after Jauary 1, The law specifically requires that brokers take ito accout the taxability effect of ay issuer reported corporate actio o the cost basis of a covered security whe reportig the sale of that security. Because the law does ot carve out foreig securities, the taxability effect of reported corporate actios o covered foreig securities must geerally be accouted for to comply.

6 Corporate Actios Taxability Maagemet Get the expert corporate actios taxability tools you eed for research, processig ad calculatios. Whe it comes to corporate actios taxability, whether you eed detailed iformatio for research ad decisio makig, foreig ad domestic coverage for processig or o demad basis adjustmet calculatios, cout o Wolters Kluwer Fiacial Services for expert cotet ad sophisticated techology tools for ivestmet tax reportig ad compliace with the cost basis law. Call us at ad select optio 2 for more iformatio about our corporate actios taxability tools. CONTENT PROCESSING CALCULATIONS Capital Chages FCATS & DCATS BasisPro Taxability Needs Corporate Actios Tax ad Legal Research Taxability Oversight, Decisio Makig ad Review Sectio 302 Withholdig ad PFIC Alerts Issuer Statemet Summaries ad Reviews Detailed Tax Iformatio for Decisio Makig Foreig Security Corporate Actio Taxability Determiatios Taxability Data for Processig ad Approval Idetificatio of Corporate Actios Taxability Determiatios for Your Securities of Iterest Foreig & Domestic Taxability Coverage for Processig Corporate Actio Adjustmets Wash Sale Adjustmets Iheritace Valuatios Divided Reivestmet Adjustmets O-Demad Corporate Actio ad Wash Sale Basis Adjustmets

7 Our Expert Corporate Actios Tax Team A dedicated Tax Director ad tax team, with log-stadig fiacial products tax experiece A committed team of global corporate actios ad data experts, with 75+ combied years of corporate actios ad/or tax experiece A sophisticated techology team with close to a cetury of tax lot accoutig experiece To lear more about the cost basis reportig law, visit

8 Wolters Kluwer Fiacial Services is a comprehesive regulatory compliace ad risk maagemet busiess that helps fiacial orgaizatios maage operatioal, compliace ad fiacial risk ad reportig, ad improve efficiecy ad effectiveess across their eterprise. The orgaizatio s promiet brads iclude: FRS Global, ARC Logics for Fiacial Services, PCi, Compliace Resource Network, Bakers Systems, VMP Mortgage Solutios, AppOe, GaisKeeper, Capital Chages, NILS, AutheticWeb ad Uiform Forms. Wolters Kluwer Fiacial Services supports its global customers with more tha 30 offices i 20 coutries ad is a leadig worldwide provider of compliace ad risk maagemet solutios for the fiacial services idustry, servig more tha 15,000 bakig, isurace ad securities customers across the globe. Wolters Kluwer Fiacial Services is part of Wolters Kluwer, a leadig global iformatio services ad publishig compay with aual reveues of (2010) 3.6 billio ($4.7 billio) ad approximately 19,000 employees worldwide. Wolters Kluwer Fiacial Services 130 Turer Street Buildig 3, 4th Floor Waltham, MA optio 2 DISCLAIMER: Neither GaisKeeper, or Capital Chages or Wolters Kluwer Fiacial Services provides tax advice. No portio of this documet or our securities tax solutios ca be costrued as tax advice ad they are ot iteded or writte by GaisKeeper, Capital Chages or Wolters Kluwer Fiacial Services to be used as tax advice. Recipiets should cosult their ow tax advisors. Determiatios of taxability ad all other attributes geerated as part of FCATS ad DCATS are rules based, usig the best iformatio obtaied by reasoable efforts based o law ad iformatio regardig evets at the time of such determiatios. Wolters Kluwer Fiacial Services makes o represetatio or warraty as to the correctess, accuracy or completeess, or cotiued availability of taxability or other determiatios ad assumes o liability for icorrect determiatios of taxability, or does it attest to the accuracy of ay data used to make such determiatios or of ay data icorporated i FCATS ad DCATS. Wolters Kluwer Fiacial Services To lear more about the cost basis reportig law, visit