Clearview Correspondent Services

2011 Year-End Tax Information

Clearview Correspondent Services, LLC is the entity through which your brokerage firm clears transactions, and is the Payer responsible to the Internal Revenue Service (IRS) for reporting your federal income and any tax withholding that appears on your Form 1099. When reporting information on your tax return (such as on Schedule B of Form 1040,) be sure to use Clearviews name and Employee Identification Number instead of the name of your brokerage firm.

What should clients expect?

Clearview issues a combined 1099 Consolidated From and Year-End Tax Statement consisting of three parts:

         The Consolidated 1099 section includes all Form 1099s applicable to your account and reflects the source and amounts of the income for the year. Unless otherwise stated, this information is reported to the IRS. You can easily determine what information is reported by referring to the paragraph at the beginning of each section of the 1099.

         The second part is an Annual Statement that displays a detailed summary of the income paid to the account, broken down by the tax income type.

         The third part is the Schedule of Realized Gaines and Losses, which provides a listing of the securities closed during the tax year and their original/adjusted cost.

o   Amounts shown in the second and third parts of your statement are for information only, but may be useful in completing your tax return.

The 2011 Tax Statement Information guide is included along with the Consolidated 1099 highlighting pertinent information that you should take into consideration.

What is reported on each tax form?

I think my 1099 is incorrect, what should I do?

Please review your Form 1099 and contact your Financial Advisor or Investment Counselor as soon as possible. Generally, the amended tax forms are processed weekly beginning in late February through mid-April.

Cost Basis Reporting

The Emergency Economic Stabilization Act of 2008 included new tax-reporting requirements that dramatically changed how financial institutions and their clients think about cost basis. For the first time, financial institutions will report the adjusted cost basis of sold securities to the IRS. These new requirements are designed to help capture accurate reporting of investors gains and losses at tax time.

For additional information about Cost Basis, please click here for a copy of our What Investors Should Know about the New Cost Basis Reporting Requirements. If you have any questions on how these regulations affect your portfolio, please contact your Financial Advisor or Investment Counselor for assistance.

Master Limited Partnerships (and K-1 Information)

Information reporting for Limited Partnerships is distributed directly from the partnership on Schedule K-1 (Form 1065). General partners have until April 15 to issue K-1s. Please contact the partnership directly if you do not receive this form or have further questions about the form. For additional information please refer to IRS Publication 541 and www.k1support.com.

Royalty Trust Tax Information

If you are a unit holder of a royalty trust, the trust will provide you with a tax information booklet that will be directly mailed to you. In addition, the booklet is typically available at a website for the trust. We are providing the list of royalty trust website links for your convenience.