End of the Year Processing

End of Year Processing Tips

It’s that time of year again: Tax Season!  January can be a hectic time for banks as they go through their End of Year Procedures to get tax forms mailed to out to customers by the deadline. Review the following tips for a smooth Tax Reporting Season.

  • Review all parameters to validate cutoff amounts and any new options/requirements prior to the End of Year extract.
  • Run reports to determine the number of customers that should be getting forms and compare with the system generated reports and to the actual number of generated forms.
  • Review any exception customers and accounts:
    • Customers without a Tax ID defined that have reportable accounts
    • Deposit accounts set to non-reportable (certain types of accounts may be non-reportable but most accounts should be reported)
    • Loan Interest Reporting Codes (no reporting, borrower only or 1098)
    • Foreign Customers (1042-S)
    • Determine how the 1099 Misc forms for non-employee compensation payments will be produced if they are not directly stored on the core
  • Review Individual Retirement Accounts:
    • Validate transactions are coded properly for reporting purposes
    • Verify the IRA type i.e. Traditional vs. Inherited vs. Roth is being reported correctly
    • Notify customers with an annual IRA statement of their Fair Market Value
    • Notify customers in Mandatory Distribution of their calculated 2019 RMD
  • Review Health Savings Accounts to validate transactions are coded properly for reporting purposes and send annual statements.
  • Before mailing tax forms, verify they are masked appropriately and that everything is in the correct box. If working with a Print Vendor, have them send samples of each type of form for approval prior to mailing to validate the forms are correct.
  • Correction forms can be created for any incorrect forms sent to customers either prior to the Federal File being produced or after the Federal File is produced if necessary.

Peak Consulting works with Financial Institutions across the country who utilize the Fiserv Premier® core.  For information on Peak’s consulting services, please visit our website at www.peakconsultingllc.com or email us at info@peakconsultingllc.com .