Growing Roster of Companies Sign On for Cost-Basis Service
With the April 15 deadline for filing U.S. tax returns fast approaching, AccuBasis will be making life easier for taxpayers, financial advisors and accountants nationwide.
An expanding number of Fortune 500 companies, including Disney, Johnson Controls and Aflac, have started offering their shareholders AccuBasis, a service that provides accurate cost-basis information quickly and efficiently.
Investors need cost-basis information to report gains or losses when filing tax returns and for determining the unrealized gains or losses of a securities position. AccuBasis, offered through DTCC Solutions, a subsidiary of DTCC, and NetWorth Services, Inc., automates and streamlines researching and calculating cost-basis information, which traditionally has been a difficult, time-consuming and expensive task.
Information within seconds
With security pricing dating back as far as 1925, AccuBasis delivers accurate cost-basis information within seconds, automatically applying to the original acquisition price the corporate actions that affect cost-basis such as stock splits, mergers, dividend reinvestments and other cost-basis adjustments.
Most companies offer AccuBasis through a link on their web page. The link connects them to the AccuBasis website where the investor can access cost-basis information by simply entering a CUSIP number, the security name or ticker symbol and the approximate date of purchase – the year will do.
Boosting shareholder satisfaction
“I was very impressed with the product when I first saw it demonstrated at an industry conference,” said Arlene Gumm, manager of Shareholder Services for Johnson Controls. “It’s fast, accurate and easy. This is a wonderful opportunity to provide our shareholders with a great service they can benefit from year after year.” Johnson Controls is a leader in making automobiles and buildings more comfortable, safe and sustainable.
Gumm also said AccuBasis will make her department’s work more efficient. “We have many shareholders, especially long-time shareholders, who call for cost-basis information. This will streamline the process for us and boost shareholder satisfaction at the same time.”
'Definitive' Data
AccuBasis is winning recognition in the investing community. In its 2008 Investment Guide, Forbes Magazine called the cost-basis information produced by AccuBasis "definitive."
What’s more, when the Internal Revenue Service (IRS) produced its Tax Gap Report of 2005, it chose the AccuBasis software to calculate cost-basis information. Drawing on its huge databases and performing intricate calculations that the IRS uses to identify inaccurate cost-basis reporting, AccuBasis consistently delivered accurate, adjusted cost-basis information to the IRS.
‘Solution to the problem’
A number of U.S. energy companies including MGE Energy, Alliant Energy, OGE Energy, Hawaiian Electric, Duke Energy and First Energy Corporation also have chosen to offer AccuBasis to their shareholders.
“Energy companies often have an especially close relationship with their investors,” said Joseph Trezza, DTCC vice president, Product Management, Asset Services. “Many of their shareholders are long term and the companies work hard to maintain ongoing communications with them, offering special services whenever possible. AccuBasis gives them another tool to achieve this.”
Trezza added that often these companies have a large number of shareholders who reinvest dividends and also continue to purchase additional shares. “This makes the cost-basis issue a particularly difficult one for them,” he said. “While they can provide shareholders with their account history, they can’t do the cost-basis calculations because there may be other factors affecting the final figure used for tax purposes. That’s why this cost-basis tool is invaluable to them.”
Other companies are seeing the benefits of AccuBasis, as well. “We’ve been getting an increasing number of calls from investors requesting cost-basis information,” said Freda Gore, senior vice president/chief operating officer of Waccamaw Bankshares, a North Carolina bank founded in 1997. “Up until now, we’ve been doing it manually and it’s been taking a great deal of time. Once we saw AccuBasis, we knew we had the solution to the problem.”
Other companies offering AccuBasis to their shareholders include Alltel, Otter Tail Corporation, H&R Block, Union Bank & Trust Co., RW Baird, Integrated Software Solutions, Sterne, Agee & Leach, Trustmark National Bank, Horizon Publishing and Hantz Tax and Business Services. @