ADP Brokerage Services Group has entered into an arrangement with The Depository Trust & Clearing Corp. to distribute the depository’s Domestic Tax Reporting Service, known as DTax to ADP clients.

The service provides year-end tax reclassification data to financial institutions and streamlines their 1099 reporting to customers, ADP said. The service provides information about more than 10,000 mutual funds, real estate investment trusts, or REITS, and other securities whose tax status frequently changes at year-end.

DTax is designed to replace the cumbersome process of manually collecting tax information by phone, ADP said. The information will be channeled directly into ADP’s year-end reporting system where clients can view the data.

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