CTI offers outsourcing for document due diligence reviews, withholding, year-end tax reporting, and intermediary processing, allowing our clients to focus on their core strengths while they entrust CTI with their compliance needs.

• CTI can assist with customer solicitations. Our service offerings include: drafting solicitation letters, including the necessary Forms W-8 and W-9 based on client type, and creating general tips on what should be provided by clients on the appropriate tax form.
• CTI can also manage the receipt of these documents, scanning the necessary Forms and additional documentation needed for accurate record keeping.
• CTI will validate the incoming Forms using its MD³ validation tool. Based on the Form validation results, CTI will create daily and/or weekly management reports for the client.
• CTI can manage the resolicitation process for invalid forms. More specifically CTI will initiate contact with the beneficial owner, explain why the form was found to be invalid, and work with the customer to obtain a valid form.
• CTI can help with determining the appropriate rate of withholding for any income event.
• CTI can assist with the Forms 1099 and 1042-S information return reporting process and generate 1099 and 1042-S E-files for the IRS.

CTI can also manage the entire intermediary processing function including: collecting documents, managing nested accounts, calculating the appropriate rate of withholding and/or creating the appropriate blended withholding rate, generating information return reports and E-files for the IRS.

CTI is pleased to announce the expansion of its outsourcing services into a full service FATCA Service Bureau (“FSB”) designed to help Foreign Financial Institutions (“FFIs”) meet their FATCA requirements. CTI’s FSB will use CTI’s proprietary solutions to manage the process from beginning to end while documenting the process for audit readiness and management reporting. FSB clients benefit from the best of both worlds: the use of the most sophisticated tax technology tools by experienced personnel as well as substantial cost savings when CTI hosts and manages the tools saving the cost of both installation and time.

FATCA requires participating FFIs to:

• Register with the IRS and obtain a special FATCA Employer Identification Number (“FFI-EIN”).
• Determine the status of investors / clients (including the owners of those investors / clients) under FATCA.
• Report information to the IRS about U.S. accounts.
• Withhold a tax of 30% on “recalcitrant” account holders, nonparticipating FFIs, and non-compliant NFFEs, if applicable.

FSB relieves the compliance burdens of FFIs by managing the entire process from assisting in the FFI registration process to obtaining and validating client documentation to e-filing Forms 1099 and 1042-S with the IRS.