VOLUME 22 - BULLETIN #233 ATOM® Year 2002 TEFRA Processing

TO:	ALL CLEARING MEMBERS
FROM:	CLIENT SERVICES AND SUPPORT
DATE:	November 29, 2002
SUBJECT:	ATOM® Year 2002 TEFRA Processing

This bulletin describes the 2002 TEFRA Processing Activities for ATOM and outlines additional processing instructions. An ATOM TEFRA Processing Schedule detailing all important deadlines is provided on page 3. The topics include the following:

1. TEFRA Tax Information Verification

2. ATOM Printing Cost

3. Tax Adjustments

4. Back-up Withholding

5. Printing of 1099 Misc. Statements

1) TEFRA Tax Information Verification

On Thursday, December 5, 2002 your firm will be able to access the Firm ATOM Tax Confirmation Report (BFR00061F) and the Firm 1099 – Misc. Information Register (BFR00062) in INFOPAC. These reports provide the firms’ current tax information it has on file on ATOM. Please verify the tax information provided in these reports. The BFR00061F form will need to be signed and returned by (Date). (Please see Volume 22 – Bulletin #230 for further details). Your firm will be reported to the IRS using this tax information. If any corrections need to be made, contact Client Services and Support.

The processing of TEFRA Data for brokers paid through the ATOM system by your firm is free to all participating firms. However, the cost of printing and the cost of the special forms used for the 1099 Misc. statements will be $2.00 per set and minimum request of one set is required for each broker.

Tax adjustments can be made for any broker listed on the Firm 1099 – Misc. Information Register (BFR00062).

If it is necessary to make tax adjustments to a deleted or inactive broker on ATOM, you must send a written request to the Board of Trade Clearing Corporation's Client Services and Support Group

The ATOM 1099 Information Register will show separate tax data for brokers who have changed their Tax Identification Number (TIN) anytime during 2002. If you need to make changes or corrections to Year to Date Earnings for a broker's old Tax Identification Number, you must send a written request to the Board of Trade Clearing Corporation's Client Services and Support Group. Changes or corrections to deleted or inactive brokers on ATOM must be done through the Board of Trade Clearing Corporation.

Corrections to dollar amounts for deleted brokers, inactive brokers or a broker who has changed his Tax Identification Number during 2002 must be requested in writing to Client Services and Support, Attention: Marc MacQuarrie or Shawn Gebbia.

Back-up withholding for a Broker is not supported through the ATOM system. If your firm wants to report back-up withholding amounts for any brokers, your firm must reduce (debit) year to date earnings on ATOM to zero. Your firm must manually prepare 1099 Misc. Statements to the brokers and to the IRS.

5) Printing of 1099 Misc Statements

1099 Misc. Statements will be available for pickup on Wednesday, January 22, 2003. Firms will be required to pick up and sign off on a statement from the Board of Trade Clearing Corporation's Client Services and Support Group, Suite 1460.

Brokers who are not on the ATOM system are considered to be test brokers and no 1099 Misc. statements will be printed. Tax adjustments to test brokers can be made through the ATOM system; however, tax adjustments will not cause the ATOM system to produce 1099 Misc. Statements for test brokers.

Should you have any questions, please call or e-mail one of the following Client Services & Support Analysts:


Thursday, December 5, 2002	BFR00061F (Firm Tax Data Confirmation) and BFR00062 (Firm 1099-Misc. Information Register) available

Friday, December 13, 2002	ATOM Processing Request Forms indicating if 1099’s will be produced for amounts under $600 and reported to the IRS must be returned to BOTCC, Suite 1460 (please refer to Bulletin #229 for further details).

Friday, December 13, 2002	BFR00061F (Firm Tax Data Confirmation) forms confirming firms’ tax information must be signed and returned to BOTCC, Suite 1460 (please refer to bulletin #230 for further details).

Wednesday, January 15, 2003	7:00 p.m. Deadline for 1099 Adjustments.

Tuesday, January 21, 2003	All 1099 Misc. Statements will be printed. All adjustments entered by 7:00 p.m., January 15, 2003, will be reflected on the 1099 Misc. Statements.

Wednesday, January 22, 2003	Firms should arrange to pick up Form 1099 Misc. Statements from Business Systems, Suite 1430.

Friday, January 31, 2003	All 1099 Misc. Statements should be mailed to brokers.

Thursday, February 13, 2003	All TEFRA 1099 Adjustments must be completed by 7:00 p.m. Adjustments will be reflected on the tape sent to the IRS. Firms that made adjustments after January 15, 2003 must prepare their own corrected 1099 Misc. Statements for the individual brokers.


Friday, February 14, 2003	Firms will receive Final 2002 ATOM 1099 Registers in INFOPAC.

Wednesday, February 19, 2003	Receive 4804 forms and documentation for review and signature from a Client Services and Support Analyst.

Tuesday, February 25, 2003	2002 ATOM TEFRA Information will be sent to the IRS