After the Emergency Economic Stabilization Act of 2008, stringent requirements were imposed on brokers and other intermediaries to report their clients’ adjusted cost basis on IRS Form 1099 to both investors and the IRS for Equities, Mutual Fund debt securities, options and private placements. eClerx provides data verification, system remediation, reconciliation and testing services to ensure accurate cost basis reporting.
Foreign Account Tax Compliance Act (FATCA) is designed to prevent US taxpayers from avoiding tax by investing through non-US financial institutions and offshore investment vehicles. FATCA is effective 1 January 2013 for US financial institutions and 1 January 2014 for foreign (non-US) financial institutions (FFIs). eClerx provides process assurance, due diligence, client on-boarding and reporting services to help banks comply with FATCA.