DTCC And ADP In US Mutual Fund Tax Reporting Venture

ADP and the DTCC have joined forces to provide a year end tax reporting for service for mutual funds, real estate investment trusts (REITs) and other US securities whose tax status is frequently reclassified at year end. ADP clients that

By None

ADP and the DTCC have joined forces to provide a year-end tax reporting for service for mutual funds, real estate investment trusts (REITs) and other US securities whose tax status is frequently reclassified at year-end.

ADP clients that are DTC participants will now have access to the depository’s Domestic Tax Reporting Service (DTax), which provides year-end tax reclassification information to financial institutions, making their 1099 reporting to customers easier. DTax – which replaces the manual collection of this information by fax and phone – will flow directly into ADP’s year-end reporting system, where ADP clients can view the information and use it to perform bulk adjustments on the affected transactions.

“With the 2004 tax reporting season quickly approaching,” says William J. Salva, group director of DTCC’s Tax Product Management group, “we recognize the importance of extending the reach of our tax information products. We teamed up with ADP/SIS to give another group of customers easier and more cost-effective access to our year-end tax reclassification information.”

David Swift, senior vice president and general manager of ADP adds that “the number of income reclassifications has increased dramatically in the past few years, adding to our clients’ already burdensome year-end workload. Getting the information from a source as reliable as DTCC will not only streamline the process, but will result in more accurate tax reporting for our clients.”

DTax was introduced for tax year 1998 in response to requests from DTC customers to replace paper-intensive processes. In addition to DTax, DTCC provides a range of other tax services designed to give its users tools and information needed to keep up with international tax regulations, income tax treaty provisions and withholding tax requirements.

«