WSC Output
After WSC receives an extract file, it processes the data in the file. When processing completes, WSC generates an output file for OID, UIT REMIC and MBS assets, and returns the file to ONESOURCE Trust Tax.
note
You will not receive an output file from WSC or the MLPs for your MLP assets.
WSC automatically returns your OID output file to ONESOURCE Trust Tax approximately two business days after you submit your OID extract file to WSC. You do not need to schedule output through WSC for OID assets.
For UIT, REMIC and MBS assets, you are required to schedule the output from WSC using the
Your Profile & Schedule
link on your firm's Dashboard on WSC's secure website . You can schedule multiple output files for UIT, REMIC and MBS assets.Before scheduling UIT output from WSC, ONESOURCE Trust Tax recommends reviewing the Balancing Data and Audit reports on WSC's secure website . These reports identify potential issues with UIT data that ONESOURCE Trust Tax is unable to identify prior to submitting your extract file to WSC.
For UIT assets, one of the most common audit exceptions is a missing principal transaction when both an income and principal transaction are expected. WSC's error code for this exception is
MP
. To resolve this error code, use the Balancing Data and Audit reports to determine if all the transactions were submitted to WSC. If the income and principal payments were posted as a single transaction, select the Force
option to divide the transaction into the appropriate income and principal amounts. If you do not divide the transaction, the total amount is considered interest.In ONESOURCE Trust Tax, use the
Event History
collapsible section on the Request Status and History page to determine whether your WSC output file has been received by ONESOURCE Trust Tax and whether it has been processed and loaded to your PAN.note
Transaction posting dates are based on a calendar-year end date. ONESOURCE Trust Tax does not make adjustments for fiscal year timing.
Transaction Data in WSC Output Files
The following table lists what is included in a WSC output files for OID, UIT, REMIC and MBS assets:
Asset Type | What's Included in the WSC Output File |
|---|---|
OID |
|
UIT |
|
REMIC |
|
MBS |
|
WSC Transactions for OID Assets
OID income is posted to various tax codes based on the type of OID security. When ONESOURCE Trust Tax loads your WSC OID extract file to your PAN, it assigns the total OID and total OID adjustment calculated by WSC to an adjustment tax code. The following table identifies the types of OID securities, the original tax code and the adjustment tax code:
Type of OID Security | Original Tax Code | Adjustment Tax Code |
|---|---|---|
OID-Treasury Bill | 13 | 13 |
OID-Other ST Discount Obligation | 7 | 7 |
OID-Federal STRIP | 192 | 197 |
OID-Certificate of Deposit | 169 | 196 |
OID-Municipal Obligation-state | 11 | 11 |
OID-Municipal Obligation-state AMT | 121 | 121 |
OID-Municipal Obligation-territory | 85 | 85 |
OID-Municipal Obligation-territory AMT | 123 | 123 |
OID-Taxable Debt Obligation | 169 | 196 |
OID-Eurodollar Obligation | 169 | 196 |
OID-Inflation Indexed Obligation | 192 | 197 |
OID-Inflation Indexed Interest STRIP | 192 | 197 |
OID-Inflation Indexed Principal STRIP | 192 | 197 |
OID-Contingent Payment Obligation | 169 | 196 |
OID-Fixed Rate Capital Security | 169 | 196 |
OID-Mandatory Convertible Security | 169 | 196 |
OID-Unadjustable Security | 169 | 196 |
Your TAV most likely posts NQSI payments to an interest income tax code. These original postings are not reportable because WSC creates reversing transactions to offset the interest payments. The reportable income is the amount of OID returned by WSC, which is posted to one of the adjustment tax codes listed in the table on the previous page.
The amount of prorated interest on nonqualified bonds includes a decrease in basis, and is posted to tax code 924 (Adjustments of Carrying Value, Units and/Or Cost).
Bond premium and market discount adjustments post to tax code 900 (Taxability to Be Determined).
WSC Transactions for UIT Assets
ONESOURCE Trust Tax loads the adjusting transactions from WSC to your PAN as they are received from WSC. No manipulation by ONESOURCE Trust Tax is required.
WSC Transactions for REMIC Assets
When your WSC REMIC output file is loaded to your PAN, ONESOURCE Trust Tax will reassign existing cash transactions to the appropriate 900 series tax codes and create new transactions. For example:
- Existing transactions posted to tax code 7 (Other Interest), tax code 9 (Corporate Interest) and tax code 86 (U.S. Government Interest-Federal & State) are reassigned to tax code 994 (Cash Amounts for REMICS Interest (before Accrual)).
- Existing transactions in tax code 169 (OID Income) and tax code 192 (OID Income on USGI) are reassigned to tax code 993 (Cash Amounts for REMICS OID (before Accrual)).
New transactions created by ONESOURCE Trust Tax have an original tax code of 973 (WSC Generated Transactions-REMIC).
For each REMIC asset, ONESOURCE Trust Tax creates new transactions to record the accrued OID and accrued interest calculated by WSC. Depending on the original tax code:
- Interest accrued for the period posts to tax code 9 (Corporate Interest) or tax code 86 (U.S. Government Interest-Federal & State).
- Accrued OID for the period posts to tax code 169 (OID Income) or tax code 192 (OID Income on USGI).
If the WSC output file includes transaction data for OID or accrued interest and there are no existing transactions posted to tax codes 7 (Other Interest), 9 (Corporate Interest), 86 (U.S. Government Interest-Federal & State), 169 (OID Income) or 192 (OID Income on USGI), ONESOURCE Trust Tax creates new transactions in tax code 995 (REMICS OID Accrued (no original transactions)) and 996 (REMICS Interest Accrued (no original transactions)).
For combinable REMICs, transaction data for OID and accrued interest is posted to the underlying assets.