Greater Transparency Into Taxable Events
Gain visibility into the underlying dividend activity associated with dividend equivalent amounts, helping teams better understand tax event impacts.
305(c) Announcements
Streamline 305(c) Tax Events
We help firms meet their federal tax witholding and reporting obligations by providing timely deemed dividend information for convertible securities under Internal Revenue Code 305(c). Under Section 305(c), certain corporate actions involving the common stock linked to a convertible security may create a taxable “deemed dividend” for holders. If a conversion rate adjustment creates this type of distribution, the issuer must file IRS Form 8937. Our Corporate Actions Processing Service for Distributions sends this information directly to clients’ tax systems, reducing the need to review individual Form 8937 filings. When DTC receives a form from an issuer, it sends an information-only announcement that includes the timing and amount of the deemed dividend.
Key Features & Benefits
Integrated Delivery And Notifications
Access announcements through established DTCC corporate action channels and receive event notifications through ISO 20022 messaging standards.
Reduced Manual Research
Receive deemed dividend information directly through DTCC, helping reduce the effort required to track and review individual IRS Form 8937 filings.
User Documentation
Access key documents, guides, forms and reference materials that support your use of this product and help you navigate important service requirements.
Resources
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Announcements & Reports
Each month, DTCC measures sigma levels for a variety of transaction processes, including those for underwriting, redemptions, dividend and interest payments, and reorganization announcements.
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Asset Services Performance Metrics
Monitor the accuracy and timeliness of principal and interest (P&I) payment allocations through DTC's Performance Metrics reporting.
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DTCC Learning
DTCC Learning provides access to training materials, educational resources and documentation designed to help users understand DTCC products, services and operational processes.
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Reference Documentation
Explore important notices, regulatory rule filings, bylaws, risk management information and operational requirements from DTCC and its clearing agencies.