IRS 871(m) Tax Compliance Data
Comply with IRS Section 871(m) and fulfill withholding and reporting obligations.
The US Internal Revenue Service regulation 871(m) is intended to ensure that non-US investors pay tax on dividends related to instruments that are linked to US equities. In-scope for withholding and reporting are transactions executed as of 1st of January 2017 in equity-linked derivative instruments with underlying US equity or those with “non-qualified Indices".
Determining which instruments are in-scope is a complex undertaking that requires extensive knowledge of the characteristics of equity-linked derivatives:
- Delta at issue
- Constituents, weighting and performance of indices with US equity components
- Continuous monitoring of dividend payments on the underlying equities
Are you prepared to identify all the in-scope securities in your portfolio?
If you aren’t confident that you can collect the necessary data and analyze the instruments in your database, then you're at risk of non-compliance with the new QI Agreement, effective 1.1.2017, which may result in hefty penalties.
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Our IRS 871(m) data service
We determine which derivatives are in scope in accordance with their underlying instruments and indices, and flag for clear identification. Over time, our award-winning corporate actions monitoring provides data which is critical for tracking changes in the instrument lifecycle and determining the dividend-equivalent payments.