2010 | Tax Guide

 

This comprehensive and informative guide is a tool to assist you or your tax professional with the preparation of your tax returns. It contains examples, explanations and illustrations from Internal Revenue Service (IRS) schedules to help you understand your Tax Information Statement.

 

 

 

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What's New for the 2010 Tax Information Statement

Electronic Delivery (e-Delivery) of Eligible Tax Forms

Pershing is pleased to announce electronic delivery of the following tax forms: 1099-B, 1099-DIV, 1099-INT, 1099-MISC, 1099-OID, 1099-R, 1099-Q, 5498 and 5498-ESA. You can now enroll to receive your tax documents electronically through a secure, password-protected website. When your tax documents are available, you will receive an e-mail with a link directing you to a website where you can log in and view, download or print them. This service is available for tax year 2010 and beyond for eligible forms, and your tax documents will remain available online for seven years from the date posted. Note that only the above-mentioned forms are eligible for e-delivery at this time and your election will remain in effect until you change or cancel it. To see a demonstration of how to enroll and access your tax documents, please click here or on the "Go Paperless" link below.

Truncating Identification Numbers on Payee Statements

The IRS allows filers of 1099 (B, DIV, INT, MISC, OID, R and Q), 5498 and 5498-ESA forms to truncate a recipient identification number (Social Security number), individual taxpayer identification number (ITIN) or adoption taxpayer identification number (ATIN) on the payee statement for tax year 2010. Pershing will be truncating identification numbers for 2010 reporting for the listed forms. Please note that the IRS does not allow the truncation of employer identification numbers (EINs). EINs will be displayed in their entirety on 1099, 5498 and 5498-ESA forms.

Changes to Form 1099-R Reporting for 2010

Box 2a will generally report the same amount as reported in Box 1 (Gross Distribution) for traditional, SEP and SIMPLE IRAs. This is a change from 2009 reporting. For 2009 reporting, the IRS instructed filers to generally leave Box 2a (Taxable Amount) blank for traditional, SEP and SIMPLE IRA distributions. Per 2010 IRS Instructions for Form 1099-R: Unless otherwise directed throughout these instructions, report distributions from traditional, SEP and SIMPLE IRAs in boxes 1 and 2a. In these cases, the taxable amount not determined in Box 2a will be checked. For further details, please refer to the 2010 Instructions for Forms 1099-R and 5498 at www.irs.gov.

Please review the Tax Guide for further information on these and other topics.

Mutual Fund Supplemental Information

The link to mutual fund tax information is no longer available. Please contact your financial advisor to obtain information regarding the percentages of tax-exempt income on municipal funds by state and the percentage of government agency, direct federal and foreign source income for funds held in your account as of December 31, 2010. You can also obtain this information by going directly to the fund website.

Read Before You File

If you held a mutual fund, real estate investment trust (REIT), widely held fixed investment trust (WHFIT), widely held mortgage trust (WHMT) or UIT in 2010, we may send you a revised Tax Information Statement. Please be aware that some issuers do not make their final distribution information available until after January. See the Dividends and Distributions section of the Tax Guide.

Royalty Trust Tax Information

For your convenience, this section provides links to royalty trust websites. Royalty trusts post tax information booklets to their websites which contain information required by holders to compute and report income, gains, losses, deductions and credits attributable to their units of the trust. The links will be activated when the information is made available by the trusts.

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Disclaimer: This website is not intended to provide tax advisory services. We suggest that you consult your tax professional to discuss the appropriate federal, foreign, state and local tax treatment of your transactions. Any U.S. tax advice contained in the 2010 Tax Guide, the Resources for Royalty Trust Tax Booklets or the Mutual Fund Supplemental Information was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in the Tax Guide, the Royalty Trust Tax Booklets or the Supplemental Information.