Independent financial technology provider Scivantage recently extended its Scivantage Maxit tax lot accounting system to include fixed income and TARP III cost basis reporting compliance capabilities. This update is in response to the IRS releasing the final phase of its cost basis reporting regulations.

Wanting to ensure its clients will be ahead of the January 1, 2014 deadline, Scivantage introduced an integrated toolset that combines cost basis, back office and tax reporting. Through unifying these systems, Scivantage Maxit is capable of reducing ongoing and end-of-year reconciliation issues.

With this latest update, Scivantage Maxit's fixed income support now includes Original Issue Discount (OID), market discount, acquisition premium, bond premium, nonqualified stated interest, deferred to interest and principal paydown.

“TARP III cost basis reporting requirements are extremely complex and with the addition of the customer elections, among other new developments, firms who do not begin preparing and streamlining their operations will struggle to meet the IRS regulatory requirements,” said Job Dennison, senior vice president, Investment Reporting at Scivantage. “Fixed income instruments ultimately have more taxable events than equities, potentially creating a significant increase in the volume of transaction processing.”

This announcement comes only a few months after the introduction of Maxit RDS, which provides firms with unlimited access to real-time Maxit data that is optimized and formatted to meet clients' specific tax lot data needs. More specifically, RDS is a fully supported and replicated data warehouse meant to reduce manual processes and eliminate the need for continuous reconciliation between the Maxit database and internal client systems.

According to Scivantage, Maxit clients have enjoyed a 100-percent success rate in getting their IRS Form 1099s out to investors on time, meeting TARP I and II reporting regulations, for two consecutive years. Furthermore, Scivantage Maxit allows broker-dealers, mutual funds, custodians and prime brokers to streamline tax and portfolio reporting, delivering a superior client experience, reducing operational costs and meeting regulatory requirements.