It was good to see so many leading professionals from the world of finance at the 29th Annual International Tax Withholding & Information Reporting Conference in New York earlier this month, which Meritsoft co-sponsored.
It was our first time at the event, the biggest of its kind, with 250 people attending. We enjoyed being able to meet many attendees, and we look forward to further discussions with some of you in the coming weeks.
The chief purpose of the conference was to provide detail on key tax issues including 871(m), 305c and QDD, and in this, it did not disappoint.
IRS reveals more on 871(m)
In particular, there was much more clarity on 871(m) combination rules. This was aided by the participation of Peter Merkel from the IRS, who talked through the main issues with industry experts from PWC and Jimenez Tax Law LLP.
It means that there’s now less ambiguity about when, how and who has to combine trades, and that Meritsoft’s Tax Manager can accommodate all such requirements for 871(m) as it moves towards the main launch in January 2018.
The panel also discussed just how difficult it would be for an in-house team to build anything capable of covering all in-scope trades. (Fortunately, our best-in-breed Tax Manager solution for 871(m) means you don’t have to.)
305(c) was also covered in detail, and it was evident that there were still aspects to be decided upon, but just as apparent that Meritsoft has the capacity to meet whatever requirements there might be.
There was also much discussion about the roles and responsibilities of Qualified Derivatives Dealer (QDD); from a Meritsoft perspective, Tax Manager can handle all that’s required.
Better picture on “Best Efforts”
In summary, the conference helped determine what the “Best Efforts” will be from the point of view of the need to comply with the IRS’s rules, although uncertainty remains in some areas. For example, when processing combination rules the full scope may not be apparent to a broker, and there is a responsibility for buy side firms to assess and tell their brokers which trades are taxable. Tax Manager can easily perform this task for you.
Overall, the picture is much clearer all round – and we look forward to helping more of you successfully negotiate 871(m), 305(c), QDD and other requirements in the months and years to come.
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