December 24, 1996
TO: BANK AND TRUST ADVISORY COMMITTEE No. 34-96
RE: TAX REPORTING GUIDELINES
______________________________________________________________________________
There are a number of new NSCC participants that are approaching their first tax
reporting season as Fund/SERV and Networking users. As a result, the Investment Company
Institutes Bank and Trust Advisory Committee thought it would be worthwhile to redistribute
the enclosed guidelines for reporting responsibilities, including tax reporting responsibilities,
that were developed at the inception of Networking. While these guidelines were developed
for Networking users, the same conventions for tax reporting are generally followed by
Fund/SERV only users.
Please note that the enclosed reporting responsibilities are guidelines and as such
may not be followed by all participants. Because it is critical that shareholders and the IRS
receive reporting once and only once on each reportable transaction, we urge you to
communicate with your counterparts to clarify responsibility for this important function.
The guidelines for reporting responsibilities will also be distributed to all NSCC
participants by John Vrettos. Questions or comments can be directed to the undersigned at
202/326-5847.
Diane M. Butler
Director - Operations &
Fund Custody
Enclosure