Financial Web application and database software company NetWorth Services has released 8949 Verifier, a Web-based application designed to allow tax professionals to examine their clients’ 8949 forms instantly for accuracy prior to filing them with the IRS.
Users can upload a client’s 1099-B form to the 8949 Verifier, where any additional information or adjustments can be made. When the information is complete, the reported cost basis information is automatically populated in the 8949 form, where the accuracy of the reported cost basis is verified and determines the adjusted cost basis of any security traded in the U.S.
The 8949 Verifier also contains color-coded alerts that indicate varying degrees of deviation from accurate cost basis calculations for the selected securities. For example, green indicates that the client’s tax form reflects a relatively low deviation from comparative benchmark figures available in Netbasis. A yellow, orange or red code signals that moderate or more severe deviation from the benchmark has been flagged in the client’s 8949.
“The new 1099-B and 8949 forms seem to have created a significant amount of taxpayer confusion and frustration, which can mostly be attributed to the non-coverage and/or misreporting of cost basis information on the 1099-B,” said NetWorth Services chief executive Nico R. Willis. “To add to the concern, there are taxpayers who have not yet received their 1099-B due to the March 15 extension that was granted to broker-dealers. Taxpayers need a well prepared tax professional more than ever before, and the 8949 Verifier allows them to expand their client services to meet the demand.”
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