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Top 10 Corporate Actions of 2012 Present Challenging Questions for Tax Season, Say Wolters Kluwer Financial Services' Experts



  Top 10 Corporate Actions of 2012 Present Challenging Questions for Tax
  Season, Say Wolters Kluwer Financial Services' Experts

Business Wire

WALTHAM, Mass. -- January 15, 2013

Which corporate actions might cause headaches for investors this tax season?
The tax and legal experts at Wolters Kluwer Financial Services are sharing
their predictions with the company’s annual Top 10 Corporate Actions list,
which highlights corporate events from the past year that pose challenging tax
consequences.

“Mergers were definitely in focus in 2012 and that’s an area taxpayers, as
well as financial and tax advisors, should continue to pay attention to as we
move forward this year,” said John Kareken, senior analyst for Capital Changes
at Wolters Kluwer Financial Services. “We will likely see more merger activity
as recovery from the financial crisis continues, and also regulatory changes
that have tax planning consequences, so there will almost definitely be new or
unusual tax issues that need to be accounted for.”

“Cost basis reporting by brokers on Form 1099-B that began last year and the
required basis adjustments for corporate actions reported on new IRS Form 8937
has made the proper reporting of corporate actions even more important this
tax season,” said Richard Ryndak, senior product manager for Capital Changes
at Wolters Kluwer Financial Services.

The Top 10 List for 2012 was selected based on voting by corporate actions
professionals, as well as other criteria, such as how widely held the affected
security was and how complex the tax issues were. This year’s list is
comprised of six U.S. transactions and four international transactions,
including a group of “domestication events” that represent a trend of foreign
corporations reincorporating back into the U.S.:

1. El Paso Corporation (Merger into Kinder Morgan)
2. Sunoco (Merger into Energy Transfer Partners)
3. Sara Lee (Spinoff of international coffee and tea business)
4. Atlas Energy (Distribution of interest in Atlas Resource Partners)
5. Aon Corporation (Reorganization as U.K. domiciled company)
6. Kraft Foods (Spinoff of Kraft Foods Group)
7. Brasil Telecom/Oi SA (Corporate restructuring)
8. Tyco International (Distribution and merger)
9. ASML NV (Reverse split and cash distribution)
10. “Domestication Events”

Details about each corporate action and why it is particularly challenging
will be presented during the web seminar, “Top 10 Corporate Actions of 2012,”
which will be held Wednesday, Jan. 16, 2013.

About Wolters Kluwer Financial Services
Whether complying with regulatory requirements, addressing a single key risk,
or working toward a holistic risk management strategy, more than 15,000
customers worldwide count on Wolters Kluwer Financial Services for a
comprehensive and dynamic view of risk management and compliance. Wolters
Kluwer Financial Services provides audit, risk, finance and compliance
solutions that help financial organizations improve efficiency and
effectiveness across their enterprise. With more than 30 offices in 20
countries, the company’s prominent brands include: FRSGlobal, FinArch, ARC
Logics for Financial Services, Bankers Systems, VMP® Mortgage Solutions,
AppOne®, GainsKeeper®, Capital Changes, NILS, AuthenticWeb™ and Uniform
Forms™. Wolters Kluwer Financial Services is part of Wolters Kluwer, a leading
global information services and solutions provider with annual revenues of
(2011) €3.4 billion ($4.7 billion) and approximately 19,000 employees
worldwide. Please visit our website for more information.

Contact:

Wolters Kluwer Financial Services
Jennifer Marso, 612-852-7912
Vice President, Corporate Marketing & Communications
jennifer.marso@wolterskluwer.com
On Twitter: @JenniferMarso
or
Angela Peterson, 612-656-7745
Corporate Communications Manager
angela.peterson@wolterskluwer.com
On Twitter: @AngiePeterson
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