2.1.9 Maintain IRS Notifications on Unit Holder Account

This topic provides instructions to maintain IRS notifications on Unit Holder account.

An IRS notification is typically issued on a unit holder account in the event of non-payment of tax or due to incorrect reporting of the Tax ID.

You can capture the IRS notification by performing an information change on the unit holder account. In the Client Preferences section, select the notification that is applicable, in the IRS Notification field.

If the notification pertains to an incorrect reporting of Tax ID, select it from the drop-down list. If the notification pertains to non-payment of tax, select the option Under Reporting. When this notification is chosen, all outflows from the account are frozen, but inflows due to standing instructions are allowed. Also, dividend is compulsorily reinvested, and tax is compulsorily deducted, regardless of the TDS setup.