About DTax

The depository's Domestic Tax Reporting Service (DTax) accumulates year-end tax reporting information on various security types, including mutual funds, real estate investment trusts (REITs) and common stock, which is necessary for accurate and timely form 1099 reporting (the U.S. Internal Revenue Service requires that payers of income provide payees with 1099 forms by January 31 following the end of a given tax year).

DTax was introduced in tax year 1998 in response to requests from numerous depository customers and the Securities Industry Association. Since that time, we have continued to upgrade the DTax database in response to customer feedback and changes in industry format.

DTax is a centralized database of year-end tax reclassification information for both depository-eligible and depository-ineligible securities. This information is vital to participants because, although dividend and income distributions are made throughout the year, the taxable status of a distribution can be reclassified at year-end to reflect long- or short-term capital gains, return of capital or other tax classifications. DTax provides this information directly from issuers and agents in a timely fashion to meet tax reporting deadlines. It replaces manual processing tasks such as transmitting faxes and conducting telephone calls.

Who can use this service

In addition, participants may access DTax on a CUSIP-level basis via the PTS function "DTAX." CCF downloads are available in the form of a master file with daily updates.

How the service works

DTax will enable you to conduct individual inquiries on a CUSIP, ticker or security description basis using the DTax function on PTS. You may also choose to build a customized portfolio of securities via DTax on the Web. To access the entire spectrum of securities on DTax, customers may purchase a master file with daily updates.

Benefits

DTax will enable you to:

Customize inquiries and searches, then save them for future use
Customize file downloads in industry standard format (CSV)
Display preference option of percentage or dollar amount
Add new security types and up-to-the-minute tax information
Review securities by CUSIP, ticker or security description
Access updates by specific dates to determine if information has been added or changed

For more information

To learn more about DTax, contact your Relationship Manager, e-mail us at Dividend_Domestic_Tax@dtcc.com, or call the International Tax Product Management Group at 212-855-2702 or 44 207 444 0000.