IRS 871(m) Compliance
The IRS regulation 871(m) aims to collect tax on dividend-equivalent payments for derivative instruments referencing US equity instruments. Transactions executed in US equity-linked derivative instruments, or those with non-qualified indices, may be “in-scope” for withholding and reporting.
Determining which instruments are “in-scope” is a difficult task that requires a thorough understanding of equity-linked derivatives. Our expert knowledge of derivatives’ delta, constituents, weighting, and performance makes this possible. As does our constant monitoring of dividend payments on the underlying instruments used by 871(m)-relevant derivatives.
How You Will Benefit
SIX does the flagging, so you don’t have to
30,000 instruments from over 300 issuers opened and analyzed daily
Rely on accurate and timely identification of “in-scope” securities
Tax Suitability in the Advisory Process
Do you have the right data on the taxation of financial products to improve the services you offer to Wealth Management clients? Find out how SIX can help you use tax data to your advantage and improve your processes.