Back office vendor PFPC Inc. is launching a new program that allows mutual funds to automatically process wash sales of securities, or sales of securities that the fund then repurchases within a 30-day period, the company announced.

The Internal Revenue System disallows any capital loss deduction when an investor or a fund repurchases the same security within 30 days. Calculating and processing wash sales is a "time consuming and labor intensive" effort, said Richard Keyes, senior tax director for PFPC.

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