Fiduciary Tax Returns

Transcription

1 Functions and Procedures Index Books On Line Main Directory Overview... 2 How does it work?... 3 What Information is transmitted to the Tax Service?... 4 How do I initiate this service?... 8 Do I have to do anything different on the Charlotte system?... 9 What else must be done? Page 1

2 Overview Charlotte does not prepare fiduciary income tax returns. It does, however, provide you with a Tax Ledger Report as of the fiscal year-end of each account based on coding in the Create Tax Ledger field in the Account Master Record. You or your tax accountant for preparation of returns can use the Tax Ledger Report. Additionally, you may arrange with Thomson Reuters ONESOURCE Trust Tax (formerly Fast- Tax) to prepare some or all of your fiduciary returns for you. If you should decide to use this service, charges are between you and them. There is a nominal SunGard charge for the ONESOURCE interface. Page 2

3 How does it work? 1. SunGard supplies the tax service with an electronic data file containing activity for your accounts. Only those accounts that you specify through coding are included with this file. Other accounts are not included. 2. SunGard will provide ONESOURCE (formerly Fast-Tax) with a month-end file. If you post corrections to data previously sent to ONESOURCE using a Transaction Code 004 (Reversal and Suppression) or Transaction Code (Suppress Printing) on SunGard, it is strongly recommended that you review the corrections on ONESOURCE also. 3. From that point, you deal directly with the tax service concerning the types of returns to be produced and procedures to be followed. Page 3

4 What Information is transmitted to the Tax Service? Information is transmitted to the tax services monthly with the normal month end tax processing. At the end of the calendar year, this information will be transmitted based on a client s year end election. That will be either at the time the month end is processed for Charlotte, or if a client has elected to delay processing of the tax year, at the close out date for post year end tax processing. Account Information Account number (6 digit) Date closed Tax year end month Account type Account long name Federal tax id number from account master Account situs Beginning principal cash balance Beginning income cash balance Current principal cash balance Current income cash balance Date opened Administrative officer code Investment officer code Total market value Prior year end market value Beginning cost value Name and Address Record Only those records that are coded with addressee type IB or IP and cross referenced by a disbursement or a tax interface cross-reference record. Transactions Transactions for the period are transmitted. Transactions with assignable transaction coded will have the user defined tax interface code transmitted. Common Trust Fund Record Charlotte maintains a cumulative record for common fund distributions that is transmitted along with all common trust fund transactions. State Codes (0) = ' '; (1) = 'AL'; (2) = 'AK'; (3) = 'AZ'; (4) = 'AR'; (5) = 'CA'; (6) = 'CZ'; (7) = 'CO'; Page 4

5 (8) = 'CT'; (9) = 'DE'; (10) = 'DC'; (11) = 'FL'; (12) = 'GA'; (13) = 'GU'; (14) = 'HI'; (15) = 'ID'; (16) = 'IL'; (17) = 'IN'; (18) = 'IA'; (19) = 'KS'; (20) = 'KY'; (21) = 'LA'; (22) = 'ME'; (23) = 'MD'; (24) = 'MA'; (25) = 'MI'; (26) = 'MN'; (27) = 'MS'; (28) = 'MO'; (29) = 'MT'; (30) = 'NE'; (31) = 'NV'; (32) = 'NH'; (33) = 'NJ'; (34) = 'NM'; (35) = 'NY'; (36) = 'NC'; (37) = 'ND'; (38) = 'OH'; (39) = 'OK'; (40) = 'OR'; (41) = 'PA'; (42) = 'PR'; (43) = 'RI'; (44) = 'SC'; (45) = 'SD'; (46) = 'TN'; (47) = 'TX'; (48) = 'UT'; (49) = 'VT'; (50) = 'VA'; (51) = 'VI'; (52) = 'WA'; (53) = 'WV'; (54) = 'WI'; (55) = 'WY'; Information is only sent to a tax service for ACTIVE or BLOCKED ACCOUNTS. After an account is changed to a CLOSE/SAVED STATUS, NO FURTHER INFORMATION WILL BE SENT. See information below about active accounts that may also be treated as Closed. Information transmitted is for the prior month. See above note regarding Corrections or changes to transactions already sent to the service. Page 5

6 If you date transactions for a prior month in the current month, those transactions are not transmitted to the tax service, The first month an account is coded for ONESOURCE, we send Year-to-date transaction history. Warning Only records coded as IB and IP will automatically receive a Schedule K-1 if disbursements are scheduled for the indicated name and address record. Page 6

7 Active Accounts Treated as Closed The closed date on the interface account record is based on the following criteria: Tax year end is equal to the current month Account does not have any holdings Cash and investments are zero If all criteria are met, the account is considered CLOSED on the interface. If account status is not CLOSED/SAVED on Charlotte, the account will be included in future files sent to ONESOURCE if/when balances are no longer zero. Page 7

8 How do I initiate this service? 1. Once you have negotiated a contract with ONESOURCE you will need to notify SunGard that you are to use their service by contacting Client Support. 2. You will need to let SunGard know the month-end the service is to begin. 3. Sungard will send you an authorization letter which will need to be completed, signed and dated, and returned to SunGard in order for files to be sent to ONESOURCE. Page 8

9 Do I have to do anything different on the Charlotte system? 1 You must include a "tax service bridge code" on your assignable transaction codes. This may be accomplished by selecting Tables > General > Transaction Category Descriptions. You can obtain these tax service codes from your tax service vendor. The transaction codes used for assignable transaction codes are as follows: Increase Income Cash Decrease Income Cash Increase Principal Cash Decrease Principal Cash 2. Tax service information will be furnished to the tax service on any account which you have coded for this purpose. Information is only transmitted for ACTIVE or BLOCKED accounts. A CLOSED / SAVED account is not transmitted. You should NOT change an account to a CLOSED/SAVED status until AFTER the final data has been transmitted. To have an account's tax information furnished to the tax service, check the TAX PREPARATION SERVICE field on the account master record, found in the tax screen. Also, for proper results, the account master record should contain proper coding in the following fields: ACCOUNT SITUS, FEDERAL TAX IDENTIFICATION # and TAX SERVICE ACCOUNT TYPE CODE all found on the Tax screen of the Account Master. 3 If you want the tax service to prepare Schedule K-1 for each beneficiary of any account, you must have a Name and Address record for each, together with a Tax Service Interface Detail Record.. Name and address records are established by selecting Reports > Account > Name and Address Master List > Add New Record.. A Tax Service Interface Detail Record can be established, by selecting Reports> Account > Relationship Report > Tax Interface Detail> Add New Record. Note ONLY N&A records type "IB" or "IP" are sent to ONESOURCE. Page 9

10 Note If the beneficiary is set up as a payee on the checkwriting system and the Name & Address record type is "IB" or "IP", a tax interface detail record is automatically created. You should review the record to verify it has set up with the appropriate coding. You may need to edit the record to include required and/or discretionary amounts. 4 For ONESOURCE, data is sent at the end of each month. 5. Data is sent directly to the tax service by SunGard. Correction and final tax preparation is between you and your tax service. Tax return preparation costs are billed to you by your tax service, not SunGard. Page 10

11 What else must be done? When the tax service receives the electronic data file, they normally furnish you with a pro forma return based on your data. You then make any corrections necessary on this form, provide any additional information required, and return it to them for final processing. Further details on this process will be supplied by the tax service. Page 11