IHS Markit, a world leader in critical information, analytics and solutions, today announced it is now offering brokers and other asset managers a comprehensive solution for cost basis calculation and reporting in alliance with Scivantage.
When assets like stocks are sold, resulting in a gain or loss, brokers are required to report basis and holding period information to the selling shareholder and the IRS via Form 1099-B. The latest challenge for brokers stems from the new IRS Rev. Rul. 2019-24, which reinforces that cryptocurrency trading is subject to tax reporting. The maximum IRS penalty for improper cost basis reporting is $3 million per occurrence.
“Our cohesive, automated solution combines real-time processing of trade data with a proven, configurable system for reporting,” said William Sheridan, managing director for Tax Solutions at IHS Markit. “In concert with Scivantage, we can deliver the most streamlined cost basis and information reporting solution and be the most effective in helping our clients reduce operational costs while maintaining their standards for compliance.”
“IHS Markit has long been the industry leader in tax form due diligence, validation, and withholding solutions,” said Cameron Routh, chief strategy officer for Scivantage. “Integrating IHS Tax Solutions with Maxit Cost Basis offers clients a highly automated tax information reporting experience.”
Integrating tax form due diligence, validation, and withholding services from IHS Markit with the Maxit Cost Basis solution from Scivantage creates a best-in-class service to identify reportable accounts and capture trade data by accounts, while maintaining, formatting and ultimately transmitting the information to account holders and the IRS for year-end reporting.
More than 300 financial institutions use Tax Solutions from IHS Markit to streamline tax compliance operations.