Managing fiduciary tax compliance is a year-round endeavor

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Fiduciary tax and information reporting compliance obligations are significant — and growing in complexity. The EY Fiduciary/Trust Tax Services team provides trust tax and information reporting compliance services for organizations that use a trust accounting platform, including banks, wealth management firms, family offices, trust companies and law firms. Our goal is to help you manage your fiduciary tax compliance obligations and to mitigate your risk.

Ready to meet your challenges

We understand that your fiduciary tax and information reporting compliance obligations are significant. The challenges relating to 1099 reporting have grown in complexity due to legal and regulatory changes in recent years. Brokers must now report cost basis information including the appropriate adjustments for wash sales, amortization and market discount.

Additionally, a broker must properly report the income from Widely Held Fixed Investment Trusts (WHFITs) and real estate mortgage investment conduit (REMIC) assets. The IRS penalties relating to incorrect information returns or noncompliance have more than quadrupled in the past five years, creating significant risks to reporting entities.

Simple and complex trusts, grantor trusts, estates, charitable trusts and foundations all have unique reporting requirements that require specialized skills. Your responsibilities present a myriad of challenges, including:

  • Managing the cost of your fiduciary tax responsibility
  • Handling a growing workload as business expands
  • Staying current on regulatory and complex tax law changes
  • Developing processes to reduce the risk of mistakes and penalties for noncompliance
  • Accommodating diverse client needs

Taking advantage of our experience can help you uphold your fiduciary duty, lift the burden of tax preparation and focus on other vital obligations of trusteeship.