Useless/redundant/unread information returns and protective filings

To describe the best practices for complying with the increasingly large body of information returns required by the Internal Revenue Service of participants in the investment management industry and the severe penalties that apply to noncompliant taxpayers.

This technical paper describes the explosive growth of information returns and protective return filings required of investment management industry participants, based upon the author’s advising tax return preparers and taxpayers charged with filing these forms.

Each tax return filing season has demonstrated the ever-increasing and enormous waste of effort and money but no relief is in sight. The expectation of relief from the tax authorities at any level or from Congress and other legislative bodies, is remote.

This paper provides timely guidance from a practitioner in the field of tax compliance including a summary of current forms to be reviewed by tax practitioners with investment management industry clients, either on the manager or the investor side.