Introduction
Clients can upload information about their Accounts and Account Owners to the TaxBit Dashboard, including data points like name, address, TIN (tax identification number), etc. This includes Accounts that are held by both an individual or an entity, regardless of where the Account Owner is a tax resident.
This guide provides information on the templates that can be ingested through the Manage Data Module. There are two templates available for use -
- US Reporting Template: For clients that have US reporting needs, outside of IRA reporting requirements, the US Reporting Template includes all relevant data points required to satisfy that reporting obligation.
- IRA (Individual Retirement Account) Template: Clients leveraging TaxBit for IRA support should use the IRA Template, which will include any IRA-specific data points, in addition to all of the fields included on the US Reporting Template.
US Reporting
The sheet attached to this article (US_Account_AccountOwner_Guide) outlines the information required for each Account. This guide provides clarity on what data needs to be populated and how it should be formatted for successful ingestion into our system.
IRA Reporting
The sheet attached to this article (IRA_Account_AccountOwner_Guide) outlines the information required for each IRA Account. This guide provides clarity on what data needs to be populated and how it should be formatted for successful ingestion into our system.
Frequently Asked Questions
What is the difference between an Account and an Account Owner?
Certain clients allow a single end customer to create multiple accounts on their platform (e.g., Checking and Savings Account). Each of those separate accounts is tied to that same end customer.
To accommodate for this use case, the TaxBit Accounts data model allows a single Account Owner (i.e. end customer) to have one or more Accounts (i.e. Checkings and Savings Account). To use this system, companies need to give a unique ID for the end customer (Account Owner ID) and a different unique ID for each account the end customer has.
For example, consider an instance where an Account Owner has 3 separate accounts –
| Account Owner ID | Account ID |
| account_owner_1 | account_1 |
| account_2 | |
| account_3 |
What information is stored at the Account Owner level versus the Account level?
The following data points are stored for the Account Owner, and are the same across every Account linked to that Account Owner:
- Name
- Address
- TIN
- Tax Residency, etc.
Consider an end customer that opens two separate accounts, one as an individual and another as a trust (entity). In this instance, a single Account Owner designation for both accounts is not suitable. Two Account Owners should be created.
Other details, such as the following, are stored on the Account:
- Filing entity
- Certain IRA details (i.e., IRA type, fair market value, etc.), where applicable
Please note that while tax forms (e.g., Forms 1099) are generated at the account-level, TaxBit considers details that are stored on both the Account Owner and the Account to determine the population of eligible accounts.
What if a platform does not have the ability to identify when an end customer has multiple accounts?
If a platform cannot support multiple accounts for one end customer or fails to recognize when an end customer has several accounts, TaxBit recommends establishing individual Account Owners for each Account. This means each Account linked to an end customer will be treated as separate with its own unique Account Owner.
For example, below describes an instance of 3 separate Account Owners, each with a single Account –
| Account Owner ID | Account ID |
| account_owner_1 | account_1 |
| account_owner_2 | account_2 |
| account_owner_3 | account_3 |
Please be aware that if your internal system uses a single ID for each End Customer, this ID can be utilized for both the Account Owner ID and the Account ID. Additionally, if the Account Owner ID field is left blank, the TaxBit system will automatically fill in the Account Owner ID field using the provided Account ID.
For example, below describes an instance of 3 separate Account Owners, each with a single Account, where the same ID is shared across both fields –
| Account Owner ID | Account ID |
| id_1 | id_1 |
| id_2 | id_2 |
| id_3 | id_3 |
What is the minimum amount of data required to create an Account Owner and an Account?
The only required field to make an Account Owner and an Account is the Account ID. If the Account Owner ID field is left blank, TaxBit will automatically populate the Account Owner ID field by duplicating the provided Account ID.
The purpose of requiring only an Account ID to ingest data is to enable you to ingest any amount of data you have available for each Account. After the data has been ingested, TaxBit will provide reports across all of your accounts to identify any gaps that may be present in the data provided.
Please note that for Form 1099 reporting purposes, the minimum data required is typically a Name, Address, and TIN, although there may be more specific requirements, depending on the Form Type (e.g., Retirement forms, such as the Form 1099-R).