Saturday, May 25, 2019
The IRS and financial institutions need to make reporting of asset sales simpler for taxpayers, would require major "mainframe technology" project
I’ve had a bit of a row with the IRS, as I haven’t been reporting the 1099-B’s properly, although it looks like when I go back in and find a stepped-up basis to insert into two of the entries, it won’t make much difference now.
But it seems as though the IRS ought to create a project, and have a contractor analyze and implement it (some company like Unisys, EDS, or even IBM) to provide taxpayers consolidated reporting information on a 1099-B summary on the first page so they don’t have to look through the details.
That would mean summarizing all the 8949 subcategories, but moreover, looking up “unreported” cost bases off of databases for historical prices for securities. This might mean that the SEC would have to set these databases up for LLC’s. This would be a traditional mainframe project, with COBOL and probably DB2, with lots of direct connect, and intricate security access protocols. But as Obamacare found out, mature old-fashioned financial systems professionals don’t seem to be around these days.
Furthermore, for "grantor trusts" and taxpayers with multiple accounts at one institution, they need consolidated reporting summarizing all accounts.
I can remember job-hunting in Dallas in 1981 that there was a company called Fasttax. Dallas would be a logical place to house such a project.
Mainframe based systems are much harder to hack, still.