GainsKeeper®—from Wolters Kluwer Financial Services, Now Has Debt and Options Functionality for Cost Basis Reporting Phase 3

  GainsKeeper®—from Wolters Kluwer Financial Services, Now Has Debt and
  Options Functionality for Cost Basis Reporting Phase 3 Compliance

Business Wire

WALTHAM, Mass. -- April 29, 2013

Wolters Kluwer Financial Services today announced that its GainsKeeper^® tax
lot accounting system now includes debt and options functionality for cost
basis reporting phase 3 compliance.

On April 18, the IRS issued final regulations for phase 3 reporting for debt,
options and single stock futures. This phase generally takes effect beginning
Jan. 1, 2014, and is widely recognized as the most difficult and complex of
the three phases of this law. More complex debt is subject to reporting
beginning Jan. 1, 2016. The rules require accommodating basis adjustment tax
calculations for Original Issue Discount (OID), bond premium and market
discount that must be integrated with other basis adjustments for corporate
actions and wash sales, as well as the lot relief rules for determining which
positions are sold.

“Compliance with the cost basis reporting law requires the mobilization of
impacted organizations in order to deliver massive operational change via
significant technology upgrades efficiently,” said Chuck Ross, general manager
of Investment Compliance Solutions at Wolters Kluwer Financial Services. “With
this functionality, our clients will be well-positioned to comply on time and
to help their clients address even the most complex cost basis reporting

“GainsKeeper has released debt and options functionality, but some
organizations might not fully appreciate that there are significant
complexities in the tax rules and calculations applicable for reporting of
debt in particular,” notes Stevie D. Conlon, senior director and tax counsel,
Wolters Kluwer Financial Services. “For example, corporate actions affecting
debt and the tax rules and customer elections that the regulations require
brokers to accommodate in calculating OID market discount and bond premium for
bonds will likely impose severe challenges for brokers. In addition, the
difficulties in making the required calculations for more complex debt
essentially mean that any broker or system that has not already begun
developing these rules may be at risk of not meeting the phase 3 requirements
on time.”

About the Cost Basis Reporting Law

The cost basis reporting law was enacted in 2008 as part of the Emergency
Economic Stabilization Act and provided for a staggered three-phase set of
effective dates for different types of securities: stock acquired on or after
Jan. 1, 2011; qualifying mutual fund and dividend reinvestment plan (DRP)
shares acquired on or after Jan. 1, 2012; and debt instruments, options and
other securities designated by the IRS which per IRS Notice 2012-34 issued May
2, 2012, now has an effective date of Jan. 1, 2014.

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
(2012) €3.6 billion ($4.6 billion) and approximately 19,000 employees
worldwide. Please visit our website for more information.


Wolters Kluwer Financial Services
Jennifer Marso, 612-852-7912
Vice President of Corporate Marketing & Communications
On Twitter: @jennifermarso
Ben Meents, 612-212-5132
Corporate Communications Manager
On Twitter: @benmeents
Press spacebar to pause and continue. Press esc to stop.