1099 Pro Offers Common Reporting Standard Software for CRS Reporting
1099 Pro now offers Common Reporting Standard software for CRS reporting as part of the OECD’s Automatic Exchange of Information for Tax Matters (AEoI) program.
1099 Pro, Inc., https://www.1099pro.com, known for over 25 years of Windows based product development for 1042-S, 1099, & FATCA reporting recently confirmed the upcoming release of CRS PRO, Common Reporting Standard software, for financial institutions subject to the Organisation for Economic Co-Operation and Development’s (OECD) reporting requirements.
The announcement of 1099 Pro’s highly anticipated CRS PRO software product could not be better timed as most CRS reporting software products come at heavy price premiums along with months of systems integration, implementation, and training. 1099 Pro’s expertise in information reporting, such as in FATCA reporting, allows for an intuitive CRS reporting software product that breaks down the CRS reporting process into manageable segments that are capable of scaling with customers’ needs.
For those who are unfamiliar with the CRS reporting requirements, CRS stands for Common Reporting Standard and was originally developed as part of the Automatic Exchange of Information for Tax Matters (AEoI) by the OECD in order to detail multi-lateral financial account reporting between tax jurisdictions. The Common Reporting Standard itself details the due diligence process, requirements, and reporting medium/format in which these financial accounts should be reported. To date, the AEoI / CRS program is supported by at least 100 jurisdictions.
“Financial Institutions (FI) are expected to perform their own due diligence that identifies which entities are classified as a reporting FI and subsequently to review each FI’s accounts to determine whether or not the accounts fall under the CRS reporting requirement” says Michael Stewart, Director of Compliance at 1099 Pro.
“The first round of the due diligence process for FI’s to identify high value accounts, those with greater than one million US dollars, should have been completed this past December while the second round, for identifying entity accounts and low value individual accounts, is expected to be completed by this upcoming December 31st.”
More broadly, this means that Financial Institutions should be nearing a selection point for a software product as many tax jurisdictions require the first wave of reporters to have their reporting data ready ahead of the September start date for the information exchange between jurisdictions.
1099 Pro’s CRS PRO software supplements this due diligence process with its five-step reporting model of 1) Importing Account Data, 2) Generating Summary Balancing Reports, 3) Individual Account Lookup & Editing, 4) Applying Jurisdictional Thresholds, and 5) Generating XML Files. CRS PRO further simplifies the process by allowing Financial Institutions to segment their data by year, Financial Institution, and other customized criteria – such as jurisdiction. The CRS PRO software itself can be installed as a standalone system, with data being imported from other financial systems, in order to avoid months of integration headaches and to ensure compatibility with any existing financial systems and data formats.
Secondly, a primary concern for many Financial Institutions, data security & location, is also addressed with the CRS PRO software in that it can be hosted internally by Financial Institutions or externally by 1099 Pro’s SSAE 16 SOC I Type II facilities if an internal environment is not readily available.
