Advisor Flipbooks

© SEI 2022 For Intermediary Use Only. Do Not Distribute. 2 Contents 1. Have there been regulatory changes that will impact tax forms and other information issued for the 2022 tax year? ............................................................................................. 4 2. Questions regarding cost basis .............................................................................. 4 A. What is a covered security? ........................................................................................... 4 B. What is a non-covered security? ...................................................................................... 4 C. What types of securities are subject to reporting? ............................................................... 4 D. How will SPTC report this information? ............................................................................. 4 3. Questions regarding wash sale reporting: ................................................................ 5 A. What is a wash sale? .................................................................................................... 5 B. What will post to my client's account? .............................................................................. 5 C. What will show on my client's 1099-B? .............................................................................. 5 D. Will wash sales be negated across multiple client accounts? ................................................... 5 E. How do Dividend Reinvestments cause wash sales? ............................................................... 5 4. Questions regarding the Return of Capital Reclassification (ROCR) Program: ..................... 5 A. What is the annual Return of Capital Reclassification (ROCR) program? ...................................... 5 B. What is Reclassification? ............................................................................................... 5 C. What assets usually reclassify? ........................................................................................ 6 D. Why are ROCR changes necessary? ................................................................................... 6 E. What will post to the account's transactions? ..................................................................... 6 F. Will ROCR transactions affect the amounts or income rates of the original dividend posting in the system? ............................................................................................................................. 6 G. When will the ROCR transactions occur? ............................................................................ 6 H. How is the ROCR classification amount calculated? .............................................................. 7 5. Questions regarding Income Re-allocation (IR): ......................................................... 7 A. What is Income Re-allocation? ........................................................................................ 7 B. What assets perform Income Re-allocation?........................................................................ 7 C. How does SPTC handle the Income Re-allocation process? ...................................................... 8 D. Why was an updated 1099DIV issued to the account owner? .................................................... 8 E. Does Income Re-allocation show in the account? ................................................................. 8 F. How is the Income Re-allocation amount calculated? ............................................................ 8 6. Questions regarding Widely Held Fixed Investment Trusts (WHFITS): .............................. 8 A. What asset classes are considered WHFIT's? ....................................................................... 8 B. For accounts that hold WHFIT's, when will the tax forms be available? ...................................... 8 C. What are the general additional reporting requirements for WHFIT's? ....................................... 8 D. What are the specific WHFIT regulations for each asset class? ................................................. 9 7. Tax reporting to clients: ..................................................................................... 9 A. Which IRS-required tax forms and reporting information will SPTC provide to my clients? ............... 9 B. When will the Tax forms be mailed to investors? ................................................................. 9 C. Will my client's full Social Security Number be on the tax forms? ........................................... 10 D. Why are some of my clients receiving two or more 1099-R forms from SEI Private Trust Company for the same account? ............................................................................................................. 10 E. Why does SPTC wait until the end of February to mail the tax forms for taxable accounts? ........... 10 F. Will my clients have online access to the tax forms issued to them by SPTC? ............................. 10 G. What tax reporting information will SPTC provide to assist in servicing my clients, and in what format will that information be made available? .................................................................................. 10 H. When should my client file their 2022 tax return with the IRS? .............................................. 11 I. What tax reporting does SPTC provide for Personal Trust Services (PTS) accounts where SPTC is acting as Agent for the Trustee, Trustee or Co-trustee? ........................................................................ 11 8. Supplementary tax information .......................................................................... 12 A. If I have clients who are invested in a Schedule K-1 (Form 1065) Generating asset, how can I find out when the asset will be issuing its Schedule K-1 (Form 1065)? ......................................................... 12 B. When are Schedule K-1 (Form 1065)'s mailed? Will the investor need to use this form to file their taxes? 12

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