Updated Documents: 1099 Best Practices
As part of the CREFC 1099 Reporting Subcommittee's ongoing efforts to promote industry best practices, revisions have been made to the 1099 Tax Reporting Best Practices of the CREFC Investor Reporting Package™ (CREFC IRP™) v8.0. These revisions are effective for the 2017 year-end tax reporting process.
The revisions change the IRP tax reporting process as outlined in the current v8.0 best practices. Key updates were made to mitigate delays and reduce confusion amongst the parties as described below:
- Modification in overall workflow between the master servicer and special servicer pre and post year end. The workflow will commence with the special servicer not the master servicer.
- Elimination of unnecessary forms prepared by the master servicer and delivered to the special servicer are replaced by increased usage of the standard template.
- Adjustment of the post year-end deadline to allow for adjustments as necessary.
- Addition of data file limitations on standard template to mitigate rejection of files.
- Continued enhancement of the current Reference Sheet and FAQ Sheet based on industry feedback.
The current v8.0 best practice tax reporting exhibits (e.g. Best Practices narrative, Exhibits A, B, C, D, E and F) have been replaced with the following documents to facilitate the updated streamline process:
- Best Practices
- Contact List (Exhibit A)
- Standard Workbook Template (Exhibit B)
- Reference Sheet (Exhibit C)
- FAQ Sheet (Exhibit D)
Please contact Grace E. Bodemuller-Holst and Libby Luther with any questions. Thank you to the subcommittee members for their contributions and continued engagement with this effort.