Fiduciary Trust International

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As tax season is upon us, we would like to keep you informed of our timeline for delivering your 2009 tax information.

The Internal Revenue Service typically requires that 1099s for 2009 be mailed by January 31st. Under certain circumstances however, meeting this deadline with final, accurate information may be impossible. This is especially true for our clients invested in mutual funds and REITs (Real Estate Investment Trusts), because the IRS requires much more detailed reporting for these investments. Mutual funds and REITs are required to identify factors, such as qualified and non-qualified dividends, long-term and short-term capital gains, return of capital and Section 1250 gains. There are also state-specific distributions for money market and bond funds, and Alternative Minimum Tax allocations. Mutual fund companies and REITs often re-issue their funds’ factors, sometimes more than once. Some of these factors do not initially become available until well after January 31st. When factors change, we are obligated to amend previously-issued 1099s, which may require that you amend your tax returns if they have been prepared early.

At Fiduciary Trust, we believe that better service includes the accurate and timely delivery of your tax information. Rather than provide tax documents that could ultimately require amendments, we will apply for a 30-day extension from the IRS to deliver your 1099. As a result, you may want to take a prudent approach to the timing of the preparation and filing of your income tax returns. For your reference, the chart below provides estimated mailing dates for our tax documents.

For Our Clients Invested in Widely Held Fixed Investment Trusts (“WHFITs”)

Beginning this year our tax reporting obligations have increased because of new IRS reporting requirements for WHFITs. These investments include WHMTs (Widely Held Mortgage Trusts) such as Mortgage Backed Securities (GNMA, FNMA, FHLMC Pools) and NMWHFITs (Non Mortgage Widely Held Fixed Investment Trusts) such as HOLDRs (Holding Company Depositary Receipts) Trusts, Commodity Trusts, Royalty Trusts and Unit Investment Trusts. Unfortunately, the information required to prepare the additional reporting is not available until early March. We are required to report this information to you by March 15th.

For Our Clients Who are Beneficiaries of Calendar Year Trusts and Estates
 
Beneficiaries of calendar year trusts and estates must receive their K-1 (Beneficiary’s Share of Income, Deductions, Credits, etc.) information by the return due date of April 15th. If information necessary to complete the return is not available by this date, we will apply for an extension to September 15th. If the return is extended, we will send K-1s as soon as information is obtained and the return is completed.

For Our Non-Resident Alien Clients

Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, is required to be furnished by March 15th each year. We are also eligible to obtain a 30-day extension for Form 1042-S until April 15th and shall do so this year.

If you should have any questions, please feel free to contact your Fiduciary Trust Portfolio Manager, Client Service Administrator, Trust Officer, or Custody Officer.

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