Source: ADP Investor Communication Services
ADP Investor Communication Services (ADP ICS), a division of Automatic Data Processing's (NYSE: ADP) Brokerage Services Group, announced today that they have formed a strategic alliance with The Depository Trust & Clearing Corporation (DTCC) to provide a joint, comprehensive tax information reporting service to banks and brokerage firms.
In order to meet tax reporting requirements, ADP's new solution will utilize its market-leading processing environment and the DTCC's comprehensive database to provide a platform for even the most intricate tax calculations and reporting. The new service will cover debt instruments with Original Issue Discount (OID), real estate mortgage investment conduits (REMICs) and real estate investment trusts (REITs), mutual funds and other securities that reallocate their distributions.
This alliance will combine the processing and world-class service of ADP's vast brokerage operations with the expertise and knowledge of DTCC's Domestic Tax Reporting Service. The combined resources of ADP and DTCC will be instrumental in changing the landscape of tax information reporting support services by bringing a new level of data and processing to the financial community. This new solution will enhance tax reporting compliance for the clients of both firms by providing the highest level of timeliness and accuracy.
"We are pleased to be working with DTCC to provide an industry leading solution to the bank and broker-dealer community" said Steve Neiss, Vice President of Tax Information Reporting at ADP ICS. "We are excited about the value that ADP and the DTCC together can bring to the industry and specifically our bank and brokerage clients to support them in their year-end processing efforts. We see this opportunity as extremely synergistic with many of our existing services including back-office processing, tax lot engine, as well as statement processing and 1099 print and distribution," says Neiss.
"The efficiency that DTCC and ADP together can bring to year-end processing efforts of the bank and broker community is tremendous" said William Salva, Group Director of DTCC. "Working together, we will be able to bring solutions to the problems our clients and the industry face as a whole in dealing with increasingly complex tax reporting requirements."