Shadow Financial Systems has added new cost-basis accounting features to its ShadowSuite securities-clearing software to address recent tax-reporting requirements.

Requirements have been placed on financial intermediaries such as brokers, banks, custodians, transfer agents, mutual funds and issuers by the Energy Improvement and Extension Act of 2008 to report accurate, adjusted cost basis information to investors and the Internal Revenue Service. As a result, brokers, custodians and banks have three years to implement system upgrades to track and capture the adjusted cost-basis information for securities transactions that occur for most securities acquired on or after Jan. 1, 2011 through Form 1099-B reporting. Penalties for failing to comply can be steep.

“Helping our clients stay in compliance with regulatory related issues is a prime focus of our research and development team,” said Shadow Financial CEO Donald Marino in a statement.

The cost-basis features are included in both the on-premise and Software-as-a-Service versions of ShadowSuite. For more information, visit www.shadowfinancial.com.

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