
Zero 1099 Corrections on New Cost basis system
Zero 1099 Corrections over 2 years of reporting is an amazing feat especially for a new Startup and completely new Cost basis system. We built an API-first cost basis system from the ground up to ensure accurate reporting of gains and losses for tax purposes. Our cost-basis and tax reporting experts defined requirements, acceptance criteria, and collaborated with the client’s lead architect to design and implement an event-driven Cost-basis system. The system was integrated with Wall Street Concepts (WSC) for 1099 reporting and ensured compliance with IRS regulations while providing seamless integration with other financial systems.
ChallengeÂ
The startup company required a highly scalable and precise cost basis system to track, and report detailed financial transactions, adhering to the complex tax rules and regulations. The system needed to process large volumes of data efficiently while supporting real-time updates and adjustments for corporate actions, wash sales, and other tax-sensitive events. Additionally, it had to integrate seamlessly with Wall Street Concepts (WSC) for 1099 reporting.Â
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ApproachÂ
Detailed Requirements & Acceptance Criteria: Our Cost Basis and Tax experts defined detailed requirements and specific examples with the proper calculations for acceptance criteria that Operations could review, and the development team implemented in automated tests. Â
API-First Development: Designed an API-first architecture to ensure easy integration with the client’s existing systems and other third-party platforms.Â
Event-Driven Architecture: Collaborated with the client's internal technology team, leveraging their expertise in event-driven systems, and developed the solution using Golang to handle large-scale, real-time transaction data processing.Â
Cloud Infrastructure:Â Built the system on AWS to ensure scalability, reliability, and security for handling sensitive financial data.Â
Data Management: Utilized PostgreSQL for high-performance database management, ensuring accurate and timely reconciliation of cost basis information.Â
Containerization with Docker:Â Implemented Docker to enable seamless development, testing, and deployment across environments, ensuring consistency and efficiency.Â
CI/CD Pipelines:Â Developed continuous integration and deployment (CI/CD) pipelines to streamline the development process, ensuring rapid delivery of new features and bug fixes.Â
1099 Reporting Integration:Â Integrated the system with Wall Street Concepts (WSC) to automate and streamline 1099 reporting for tax purposes.Â
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ResultsÂ
Accurate Reporting: The system delivered precise cost basis calculations, ensuring accurate tax reporting and reducing the risk of IRS penalties.Â
Real-Time Adjustments: The event-driven architecture, built in collaboration with the client’s technology team, allowed for immediate handling of corporate actions and other adjustments, maintaining up-to-date and accurate cost basis records.Â
Scalability & Efficiency: Built on AWS and containerized using Docker, the system scaled effortlessly to handle large transaction volumes, improving operational efficiency and reducing manual intervention.Â
Continuous Delivery: The CI/CD pipelines enabled faster releases and improved the speed and quality of the system’s development cycle.Â
Comprehensive Tax Reporting:Â The integration with Wall Street Concepts (WSC) automated 1099 reporting, reducing manual work and ensuring compliance with tax regulations.Â
Compliance Assurance:Â Achieved full compliance with IRS regulations, providing peace of mind for the client in terms of tax reporting accuracy.Â
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ConclusionÂ
By implementing a custom-built, API-first cost basis system, MyndCore Partners enabled the client to improve tax reporting accuracy, enhance operational efficiency, and ensure regulatory compliance. Working alongside the client’s technology team, we leveraged our combined expertise in event-driven architecture, cloud technologies, containerization, CI/CD pipelines, and tax reporting systems to deliver a robust, future-proof solution that integrated seamlessly with Wall Street Concepts (WSC).Â
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MyndCore Partners ContributionsÂ
Industry Expertise:Â Deep knowledge of Cost Basis Reporting, IRS Compliance, Corporate Actions, Gain/Loss Calculations, Wash Sales, and 1099 Reporting.Â
Agile Project Leadership:Â Guided development using Agile methodologies, including iterative development cycles, backlog prioritization, and sprint reviews.Â
Technical Expertise:Â Developed an event-driven architecture using Golang, AWS cloud infrastructure, PostgreSQL, Docker, and CI/CD pipelines, working closely with the client's technology team to build a scalable solution.Â