Domestic Tax Reporting Service (DTax)

The Domestic Tax Reporting Service (DTax), provided by DTCC Solutions LLC, provides income classification information necessary for U.S. Internal Revenue Service (IRS) 1099 form reporting.


About

DTax provides DTC participants with vital post-payment, year-end tax classification information on more than 20,000 securities whose tax status is frequently reclassified at year end. The service significantly streamlines participants’ 1099 reporting to their customers, the beneficial owners of securities.

DTax accumulates and provides a centralized location for year-end tax reporting information on various types of securities, both DTC-eligible and non-eligible. Securities types covered by DTax include, but are not limited to, regulated investment companies (RICs), real estate investment trusts (REITs), and common stocks.

IRS form 1099 is used by taxpayers to report certain types of income, including interest and dividend payments and real estate proceeds, but 1099 forms do not deduct income taxes from these payments.

The service allows users to conduct individual inquires on a CUSIP, ticker or security description basis, as well as perform advanced searches for specific groups of securities (e.g., those securities that reclassified yesterday, last week, etc.).

Who Can Use the Service

All DTC participants may use DTax to obtain income classification on security.

Benefits

  • Centralizes year-end tax classification information.
  • Covers tax classification for DTC-eligible and non-eligible securities.
  • Helps participants and their customers meet tight tax reporting deadlines through timely provision of information from issuers and agents.

How the Service Works

DTC participants perform individual inquiries on a CUSIP, ticker or security description basis, using the Domestic Tax Reporting function on Participants Browser Service (PBS) or the DTAX function on Participant Terminal System (PTS).

Please note: The information contained herein regarding the DTC DTax Service is not tax advice and is not intended to be a substitute for obtaining tax advice from an appropriate professional adviser. You should consult your own tax advisor regarding the applicability of any federal, state, local and non-U.S.tax laws.

For More Information

Please contact Client Support at 1-888-382-2721, Option 4 then Option 5.

You are hereby notified that: (a) any discussion of federal tax issues contained or referred to herein is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed under Internal Revenue Code; and (b) as a matter of policy, DTCC does not provide tax, legal or accounting advice and accordingly, you should consult your own tax, legal, and accounting advisor before engaging in any transaction.

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