Wolters Kluwer Financial Services Experts Confront Toughest Foreign Corporate Actions Reporting Problems

New Whitepaper Addresses Challenges in Meeting Cost Basis Reporting Requirements

MINNEAPOLIS--()--The tax and legal experts at Wolters Kluwer Financial ServicesCapital Changes unit have released new strategies to help firms address some of the toughest cost basis reporting challenges that can emerge when reporting foreign corporate actions. The new white paper, Solving Foreign Corporate Actions Reporting Problems, explores two 2014 corporate actions that highlight issues brokers face when dealing with particularly complex and unusual tax consequences to meet these requirements.

“Foreign issuers rarely will provide any information about the U.S. tax consequences of an international corporate action, but this doesn’t absolve brokers of their responsibility for reporting accurate cost basis,” said Richard Ryndak, senior product manager for Capital Changes at Wolters Kluwer Financial Services. “This perspective reflects our long history of developing tax information and guidance on U.S. and foreign corporate actions in order to help brokers address some of the most challenging events every year.”

“Firms concerned about complying with the cost basis reporting law face numerous reporting challenges,” said Stevie Conlon, senior director and tax counsel with Wolters Kluwer Financial Services. “Without help from a trusted source with tax and corporate actions expertise, it can be incredibly difficult to obtain reliable tax information and minimize the risk of penalties. These are two critical components to helping firms maintain a focus on safe growth and profitability.”

“The cost basis reporting law was a game changer that generally requires brokers to consider the tax accuracy of the booking of corporate actions for all U.S. and foreign stock,” Conlon continued. “We expanded our product offering to include a new technology-driven product, Corporate Action Taxability Service (FCATS™), to complement our Capital Changes International product for comprehensive coverage of almost all foreign stocks.

Capital Changes International provides detailed coverage of the most challenging corporate actions, including those by foreign issuers with thorough explanations of U.S. taxability. FCATS provides rules-based U.S. tax determinations and back-office automation for almost all equities in its customers’ securities of interest. Together, Capital Changes International and FCATS provide a comprehensive and reliable third-party source for U.S. cost basis reporting and compliance in the area of foreign corporate actions.

To access the whitepaper, please visit our website.

About Wolters Kluwer Financial Services
Wolters Kluwer Financial Services provides customers worldwide with risk management, compliance, finance and audit solutions that help them successfully navigate regulatory complexity, optimize risk and financial performance, and manage data to support critical decisions. With more than 30 offices in 20 countries, our prominent brands include: AppOne®, AuthenticWeb™, Bankers Systems®, Capital Changes, CASH Suite™, GainsKeeper®, NILS®, OneSumX®, TeamMate®, Uniform Forms™, VMP® Mortgage Solutions and Wiz®. Wolters Kluwer Financial Services is part of Wolters Kluwer, which had 2014 annual revenues of €3.7 billion ($4.9 billion), employs 19,000 employees worldwide, and maintains operations in over 40 countries across Europe, North America, Asia Pacific, and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.

Contacts

Wolters Kluwer Financial & Compliance Services
Chuck Miller, 320-217-9193
Director, Corporate Communications
charles.miller@wolterskluwer.com
On Twitter: @charleswmiller
or
David Ratz, 612-656-7779
Manager, Corporate Communications
david.ratz@wolterskluwer.com
On Twitter: @davidratz

Release Summary

A new whitepaper from Wolters Kluwer Financial Services looks at two 2014 corporate actions that highlight the issues brokers face when dealing with complex and unusual tax consequences.

Contacts

Wolters Kluwer Financial & Compliance Services
Chuck Miller, 320-217-9193
Director, Corporate Communications
charles.miller@wolterskluwer.com
On Twitter: @charleswmiller
or
David Ratz, 612-656-7779
Manager, Corporate Communications
david.ratz@wolterskluwer.com
On Twitter: @davidratz