ADP Brokerage Services Group has signed a deal with the Depository Trust & Clearing Corporation (DTCC) to distribute the depository’s Domestic Tax Reporting Service (DTax) to ADP clients.
DTax provides vital year-end tax reclassification information to financial institutions, significantly streamlining their 1099 reporting to customers. It supplies information on more than 10,000 mutual funds, real estate investment trusts (REITs) and other securities whose tax status is frequently reclassified at year-end. DTax replaces the cumbersome, manual collection of this information by fax and phone. DTax information 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 2002 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 to give another group of customers easier and more cost-effective access to our year-end tax reclassification information.”
“ADP is always looking for ways to simplify our clients’ processing and make them more competitive in the marketplace,” adds Marianne Brown, senior vice president and general manager, ADP Brokerage Processing Services. “But we are particularly excited by this opportunity because DTCC is filling a real void in the industry, and their entry into this arena represents a significant improvement to the alternatives previously available to our mutual clients. And as always, the scale and efficiencies inherent in DTCC operations make this product cost effective relative to alternative sources.”
DTax was introduced for tax year 1998 in response to requests from numerous customers to replace their existing costly, paper-intensive processes. In addition to DTax, DTCC provides a range of automated tax solutions to give customers the tools and information needed to keep up with evolving international tax regulations, income tax treaty provisions and withholding requirements.