Wolters Kluwer Tax Expert Stevie Conlon to Speak at SIFMA Vendor Forum
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  • Wolters Kluwer Tax Expert Stevie Conlon to Speak at SIFMA Vendor Forum

    March 29, 2016

    New Sec. 871(m) rules will pose compliance challenges for brokers

    Wolters Kluwer today announced that Stevie Conlon, senior director and tax counsel, will explore the compliance ramifications of corporate actions in light of recently issued Section 871(m) final regulations of the Internal Revenue Service in a panel discussion at the Securities Industry and Financial Markets Association’s (SIFMA) Sec. 871(m) Vendor Forum. The presentation will take place from 12:00 to 5:30 p.m. ET Wednesday, March 30 at SIFMA’s NYC Conference Center, 120 Broadway, New York City, and will be followed by a networking reception.

    Conlon will speak on “The Critical Impact of Corporate Actions on Section 871(m) Compliance” and provide an assessment of Section 871(m) compliance concerns triggered by corporate actions involving underlying stock—as well as discuss other practical matters and compliance issues with certain aspects of the final regulations.

    The Sec. 871(m) final regulations approved in September 2015 treat amounts relating to certain financial instruments as “dividend equivalents” that are subject to U.S. income and withholding tax. Conlon says that the new regulations will require broker-dealer firms to quickly get up to speed on the new withholding tax rules.

    “Because these final regulations generally apply to transactions issued on or after January 1, 2017, brokers now have very little time to develop the systems and procedures required for compliance with the regulations,” said Conlon. “The new regulations create some withholding tax compliance challenges, particularly with regard to options, that many financial firms will be forced to contend with," she said, noting that Wolters Kluwer is working on solutions to help clients comply with these particularly burdensome aspects of the new Sec. 871(m) rules, in addition to its existing tool for withholding tax and mutual fund reporting under IRC Sec. 305 for deemed dividends.

    Conlon joined Wolters Kluwer in 2004. In addition to her thought leadership in helping keep clients apprised of financial tax compliance issues, Conlon has played a key role in the development of several compliance software tools focused on financial firms, most notably including GainsKeeper, Capital Changes 305C Alert, FATCA GFD-Grandfathered Debt, and FundTax.

    About Wolters Kluwer Governance, Risk & Compliance

    Wolters Kluwer Governance, Risk & Compliance (GRC) is a division of Wolters Kluwer which provides legal, finance, risk and compliance professionals and small business owners with a broad spectrum of solutions, services and expertise needed to help manage myriad governance, risk and compliance needs in dynamic markets and regulatory environments. The division’s prominent brands include: AppOne®AuthenticWeb™Bankers Systems®BizFilings®, Capital ChangesCASH Suite™CT Corporation, CT Lien Solutions, Corsearch, ELM Solutions, TyMetrix® 360, Passport®, LegalVIEW®, GainsKeeper®, OneSumX®, Uniform Forms™VMP® Mortgage Solutions and Wiz®.

    Wolters Kluwer N.V. (AEX: WKL) is a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. Wolters Kluwer reported 2015 annual revenues of €4.2 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide.