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.).