G2 FinTech, provider of tax analysis and compliance software for the investment management community, today announced major enhancements to the dividend analysis functionality in TaxGopher, the company's flagship tax analysis product.
Already one of the most advanced tax analysis engines for cost basis adjustments, TaxGopher now considers mitigated risk of loss in treating Qualified Dividends (QDI) and Dividend Received Deductions (DRD).
To determine if a dividend qualifies for preferential (lower) tax rates, a taxpayer must not only verify that the dividend-producing equity was held for the required length of time, but must also check to see if the risk of loss incurred by the equity position was mitigated during the eligibility period. If the taxpayer considers only the holding period and fails to consider mitigated risk of loss, they risk incorrectly claiming a dividend as qualified, when it must in fact be taxed at ordinary dividend rates. TaxGopher's new functionality prevents clients from getting these steps wrong, helping to decrease the risk of non-compliance with the Internal Revenue Code (IRC).
G2 FinTech CEO George Michaels commented, "The only way to accurately address qualified dividends is to have a solution that already handles straddles and constructive sales processing, as our software does. Now with the addition of sensitivity to mitigated risk of loss, and treatments to soften taxation on dividends received, our clients stand to further benefit from TaxGopher, the market-leading software solution for full tax analysis of securities transactions."
"We are persistently beating the drum about the critical importance of accurate tax analysis to our clients. In order to comply with the (IRC) and optimize tax efficiency, they must have a comprehensive approach to the analysis of securities transactions," said Brian Roberti, Managing Director of G2 FinTech. "We continue to execute a focused game plan to build, deliver and support the tax-related functionality our clients need to solve their business problems. That is one thing that will not change as we navigate the fast-paced, complex investment management marketplace that we serve."
G2 also recently announced its participation in two upcoming industry events, continuing its role as a thought leader and educator in the investment management tax analysis space.
G2 is co-sponsoring "Effective Hedge Fund Tax Practices," a two-day event run by Financial Research Associates and The Hedge Fund Business Operations Association, Nov. 19-20 at The Princeton Club of New York. At the event, George Michaels will participate as a panelist during the Nov. 20 session, "Wash Sales, Straddles, Short Sales, Constructive Sales and Other Potential Pitfalls."
In early 2014, G2 will also launch a webinar series that offers practical, up-to-date information on full tax analysis of securities transactions (TAST). Attendees will have the opportunity to earn CPE credit.