The US Dividend Reclassification service can be utilized to create 1099s for your clients, as a secondary source to validate your primary provider, or as a tool for your client support group to research customer inquiries.
The files also contain the specific income classifications needed for accurate and timely income tax reporting for each dividend payable on the security. NRA Exempt Income Dividend - Amount per share, exempted from additional withholding taxes on dividend/interest income, applicable to foreign entities (individuals, partnerships, corporations, estates, and trusts) from sources within the U.S., such as mutual funds.
The files contain a number of security reference data fields, facilitating the content into your security master including issuer name, Issuer name, Country of register, Multiple security Identifiers, CFI and CIK codes, Industry classifications (SIC, NAICS), Security type, Security Description, and Ticker symbol.
North America - US Open-Ended Funds, Closed-End Funds, Exchange Traded Funds, and Real Estate Investment Trust.
Brokerage (Retail and Institutional Brokerage Firms)
Brokerage has to supply their account holders with 1099 for tax purposes. These 1099s contain the total amount of dividends the account holder has received, applicable to the tax year, in addition to all the income classifications so they can file their tax returns accurately (ordinary income, short term cap gains, long term cap gains, return of capital, etc. plus the qualified portions for each income classification)
Clearing Firms and Trust Accounting Systems
They also have the same functional usage as Retail Brokerage
These are firms that the Retail Brokerage, Clearing Firms and Trust Accounting System may outsource the creation of the 1099s to.
Accounting Firms/Tax Preparation Services (H&R Block as an example plus individual accountants and small accounting firms)
These firms use more of a lookup service to obtain the tax liability for dividends and distributions when their client does not have 1099 (or lost it). They also might use it to double-check the actual dividends in addition to the income classifications (vs just the summary amounts).
Delivery options: SFTP
Delivery format: CSV
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