Cost Basis Reporting
Year-end reporting will be a real test of your firm’s Cost Basis Program!The IRS’ cost basis reporting requirements for equities became effective on January 1, 2011. Regulations require that all firms responsible to produce 1099-Bs must now include the gross proceeds of the sale, the customer’s adjusted cost basis, and indicate whether the difference represents a long term or short term gain or loss.
Are you prepared for the upcoming tax season? Jordan & Jordan can help.
Jordan & Jordan will bring its extensive cost basis experience and domain expertise to assist your firm in identifying operational issues and regulatory concerns to ensure the highest level of preparedness.
We will help identify the areas your firm should be focusing on, including enhanced customer support in anticipation of increased volumes of 1099-B filings at year-end and throughout the year as a part of the correction process.
Compliance Assessment
Jordan & Jordan's Cost Basis Reporting Assessment Program will pinpoint the gaps and issues that need attention now, and alert you to potential pitfalls in the future. The assessment will help your firm:- Mitigate operational and business risks and avoid penalties.
- Improve resource allocation and budgeting.
Subject Matter Expertise for Program Implementation
Jordan & Jordan can help your firm:- Gear up for fixed income and options – the challenges may be more complex than implementations for equities and mutual funds.
- Utilize your internal resources more efficiently and meet critical timelines with experienced project managers who have deep domain knowledge.
Client Education and Internal Training
Jordan & Jordan's Cost Basis Reporting Education Package clearly describes in detail the impact to the client of all changes in cost basis reporting regulations. This series of twelve (12) modules can be tailored to your firm’s specific internal policies and procedures and modified as part of your firm’s cost basis program.- Communicate the Tax Reporting Changes to your Clients to raise awareness and avoid confusion during tax season.
- Educate your Employees and Support Personnel as they become more engaged in servicing your customers' cost basis needs.
Why Jordan & Jordan?
Jordan & Jordan provides cost basis reporting expertise which leverages knowledge gained from both our industry involvement and our experience in working with broker dealer operations and technology at the firm level.Jordan & Jordan is experienced in managing large-scale projects, where industry timelines are critical and your internal resources must be used efficiently. We have provided cost basis services in the form of risk & readiness assessments, direct consulting engagements, compliance audits, and created a 12 module training program that has been used by large national retail broker-dealers to educate well over 10 million retail clients regarding the new cost basis reporting regulations.
Jordan & Jordan’s familiarity with the securities trading process extends from decision support and order entry to back office processing and asset servicing, providing a solid foundation for process review, impact analysis and issue resolution.
Please contact Mary Lou Von Kaenel at 212-652-4483, or e-mail marylou@jandj.com for more information.