Press Releases
CCH Capital Changes to Provide IRS With Comprehensive Research Information for Verifying Taxpayer Capital Gains and Losses
Treasury Will Now Be Able to More Accurately Verify Taxpayer Investment Income Reporting
9/27/05 RIVERWOODS, Ill. - Sept. 27, 2005 - Wolters Kluwer Corporate & Financial Services today announced it will provide the Internal Revenue Service (IRS) with easy, on-line access to the capital gain and loss information on publicly-traded securities. Under this recent purchase, IRS agents will be able to access the entire CCH® Capital Changes on-line database, containing information on more than 100,000 companies and spanning more than 100 years, as they conduct research, verify taxpayer returns, or pursue audits of returns. CCH Capital Changes is considered the tax authority for accurate basis tracking and related tax issues involving stocks in the U.S. and world capital markets. Basis essentially is the purchase price of a security adjusted for any corporate actions, such as splits or mergers, which result in a change to the cost basis of a security. "The IRS faces one of the same challenges that many taxpayers also face - accurately tracking the cost basis of security holdings necessary for accurate calculation of capital gains and losses," explained David Stephens, vice president of securities and insurance for Wolters Kluwer Corporate & Financial Services. "With access to CCH Capital Changes, the IRS has an accurate, independent way to verify the information taxpayers are providing about their gains and losses." Taxpayer over-reporting of basis-reporting that the cost of the basis of the security is higher than it truly is and, thus, reporting lower gains - is estimated to cost the IRS several billions of dollars annually in uncollected capital gains tax, according to a 2004 special report by Tax Analysts, a Washington, D.C.-based nonprofit organization. CCH Capital Changes was selected as a source of tax information as part of an existing contract with LexisNexis® under the IRS's Service-Wide Electronic Research Program. This contract included additional CCH content, such as the CCH Standard Federal Tax Reporter, Federal Tax Service, CCH Estate and Gift Tax Reporter, and CCH U.S. Master Tax Guide. Through both this and other programs, the CCH brand has been an important tax law information and research resource for the IRS for decades. In addition to the IRS, leading investment banks, other financial services firms, and publicly-traded firms have looked to CCH Capital Changes for more than 75 years to accurately perform tax basis calculations and prepare tax returns, manage investment portfolios and provide investment planning advice, prepare estate planning reports, and manage equity assets in mutual funds. The CCH Basis Factors™ and fair market values, integrated into CCH Capital Changes, are calculated by CCH in accordance with Internal Revenue Code. For both the professional and individual investor, GainsKeeper® (www.gainskeeper.com), also from Wolters Kluwer Corporate & Financial Services and the leading automated tax lot accounting service for the investment community, provides Internet-based cost basis tracking for its subscribers' portfolios and also utilizes CCH Capital Changes content. About CCH Capital Changes Wolters Kluwer is a leading multinational publisher and information services company. The company's core markets are spread across the health, corporate services, finance, tax, accounting, law, regulatory, and education sectors. Wolters Kluwer has annual revenues (2004) of €3.3 billion, employs approximately 18,400 people worldwide, and maintains operations across Europe, North America, and Asia Pacific. Wolters Kluwer is headquartered in Amsterdam, the Netherlands. Its depositary receipts of shares are quoted on the Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. |
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