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December 16, 20212021 Tax Season OverviewTo help you navigate through the 2021 tax season, this comprehensive communication provides links to varioussupporting materials and resources: Tax Statement Changes Home Office Tools Investor Inf ormationWe will update this communication as more information becomes available and include it in our weekly PershingUpdate.Note: This communication is not for public distribution and should not be posted on any public-facing website.2021 Tax Statement Changes1099 Tax Statement:Form 1099 -DIVIRS Form 1099-DIV has been redesigned to support new reporting requirementsf or Section 897 Ordinary Dividends (Box 2e) and Capital Gains (Box 2f). As partof the redesign, we will now summarize federal and state income tax withholdingf or Dividends and Distributions and Capital Gain Distributions in a separatesection.1099 Tax Statement:Form 1099 - MISCThe IRS has renamed Form 1099 – MISC. It is now referred to as MiscellaneousInf ormation.1099 Tax Statement:Courtesy InformationStatementWe have streamlined our 1099 Courtesy Statement and process. A newdocument has been created and named Courtesy Inf ormation Statement. Forclarity, the new document has been updated to remove IRS language and boxnumbers, and disclaimers have been included to clearly communicate that thisinf ormation is not filed with the IRS. This document will be available in eDocument Suite, under Tax Documents with its own link called CourtesyInf ormation Statement (CIS). Entitlements for this document are the same asexisting tax documents.1099 Tax Statement:Pending 1099 NoticeThe Pending 1099 Notice has been reclassified to an Account Notification withine-Document Suite . Because the Pending 1099 Notice is not an actual IRSdocument, this change is in line with other account notifications at our firm. Noaction is required by you. The document will be electronically delivered to allinvestors enrolled in the eDelivery of account notifications, and all others will bedelivered by mail. 2021 Pershing LLC. Pershing LLC, member FINRA, NYSE, SIPC, is a subsidiary of The Bank of New York Mellon Corporation (BNY Mellon). Trademark(s)belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, isproprietary to, and constitutes confidential information of Pershing. It ma y not be reproduced, retransmitted or redistributed outside your firm without the expresswritten consent.1

Home Office ToolsResourceMailingSchedulesDetailsWe are continuing the phased mailing approach for IRSForm 1099 (B, DIV, INT, OID and MISC) tax statements forthe 2021 tax year.Tax documents will be posted in e-Document Suite andItems f or Attention (IFA) via NetX360 as they becomeavailable. This includes Draft 1099s, Initial 1099s, Pending1099 Notices and Revision Mailings. As a reminder,entitlements are required to view these documents. Notethat draf t forms are not available to investors. They are notmailed or delivered electronically, and they are not viewablein NetXInvestor .Courtesy Information Statements (CIS) will be posted to eDocument Suite after the phase three mailing (February28). Courtesy Information Statements are available tof oreign accounts and S and C corporations (excluding IRAand qualified plans). Courtesy Inf ormation statements willnot be delivered by mail. You can access the document viae-Document Suite, and your clients can access thedocument via NetXInvestor.Find ItPhased Mailing Schedule for1099sPosting Schedule for eDocument Suite and IFAInitial 1099 MailingPosting Schedule for eDocument Suite and IFA:Revision 1099 MailingPosted to e-Document Suite andNetXInvestorNote: The Courtesy Inf ormation Statement is being providedf or inf ormational purposes only and will not be furnished tothe IRS.NetX360 MarketingCenter TaxReporting pageProvides the latest tax information and resources in oneconvenient locationNetX360 Marketing Center Tax ReportingeAnalytics 1099Download toExcel1099 Download to Microsoft Excel —Provides for downloadof three rolling tax years of 1099 data to Excel for reportable1099 inf ormation by tax year (for 1099-B, DIV, INT, OID andMISC). This will allow users to view and filter aggregated1099 data in various ways, including Office, IP, TIN, CUSIPand Household.NetX360 Reports andDocuments Report Center AllReports Keyword(s): TaxReportsSample Taxand Year-endStatement(TYES)Pershing’s tax statement received a rating of Excellent andf our stars from DALBAR’s Trends and Best Practices inTax Reporting since 2015.Will be available in NetX360 Marketing Center Tax ReportingAn investor-friendly versionwill be available atbny.mn/taxresources2

Home Office Tools (continued)ResourceTYESEnrollmentDetails The Tax and Year-end Statement (TYES) is the premiumversion of our 1099 statement that includes cost basisand realized gains and losses for covered andnoncovered positions. Enrollment capabilities can beestablished at the introducing firm (IBD), office (OFF) andinvestment professional (IP) level, and can include orexclude individual accounts as needed, up to 3,000. Accounts must be enrolled to view cost basis and/orstatements in NetX360 to be eligible to receive a TYES.Find ItVia NetX360 Admin Admin Tools InformationDelivery Tax and YearEnd Statement/Year-EndAccount Report There is a 2 charge per statement per year for eligibleaccounts. There is no charge for eDelivery. Enrollment for the TYES is automatic for all 1099-eligibleCorestone Gold and Platinum accounts at no charge.Tax Reportsf or 2021 IRS B Notice Reports (TXA997A1 and TXA997A2) 1099 Tax Statement Initial and Revision MailingsVia NetX360 Report CenterReport (TXA125D0) 1099 Tax Statement Initial Mailing Account DetailReport (TXA126R0) 1099 Tax Statement Revision Mailing AccountDetail Report (TXA127R0) Account Subject to Backup Withholding (TXA585R0) 1099 Tax Statement Hold Report (TXA515R0) YTD NRA Chapter 3 and Chapter 4 Withholding(TXA310R0)eDeliveryeDelivery provides the fastest and most secure access toclients’ Form 1099 (B, DIV, INT, OID and MISC), as well asthe 1099-R, 1099-Q, 5498 and 5498-ESA. Elect to send yourclients any of the statement messages to remind them of thebenef its of eDelivery during tax season and all year around.(Note: Client statement message requests must be receivedby the 15th of the month.) IRS Form 1042-S and Puerto RicoForm 480.6 are both also eligible for eDelivery.Statement Messages3

Home Office Tools (continued)ResourceDetailsRevisionProcessThe f irst revision mailing for Form 1099 is planned forFebruary 15. By this date, we plan to mail the first set ofrevisions—which will report changes to any tax statementsmailed by January 31 as part of the Phase One initialmailing. Further revisions will occur by February 28 and byMarch 15 to report corrections to tax statements mailed inany of the previous mailings. After March 15, revisions willbe sent weekly. You can view drafts of revised taxstatements within e-Document Suite by the Tuesday priorto their mailing and can review the accuracy of recent costbasis adjustments, as well as other sensitive transactions.If additional adjustments are pending, users can hold arevised tax statement mailing through TXAS—TaxReporting System/TEFRA until the next scheduledproduction print. This feature could prevent multiplerevisions being mailed to your clients. Hold requests mustbe submitted by 8 p.m. (ET) on February 15 for theFebruary 28 mailing and March 1 for the March 15 mailing.When the weekly revision process begins, hold requestsmust be submitted by 8 p.m. (ET) on Wednesdays.Note: If an income correction is made to a clientaccount after issuing his or her tax statement and thecorrection is an increase or decrease of less than 100of income, we may not send a revised tax statement. Ifthe client would like to receive revisions that are lessthan 100, he or she will need to contact your firm tosubmit a Service Center Request to Global TaxManagement Tax Reporting Tax InformationStatement.Find ItForm 1099-B cost basisinquiries: Global TaxManagement TaxReporting Cost BasisReportingAll other Form 1099 taxstatement correctionrequests: Global TaxManagement TaxReporting Tax Inf ormationStatementView the Task Ref erence called,Request a Delay of a RevisedTax Statement (TXAS), in theNetX360 Learning Center andsearch using keywords Requesta Delay of a Revised TaxStatementInvestor InformationResourceDetailsFind Itbny.mn/taxresourcesImportant tax information is available for your clients. TheTax Guide, a sample TYES, royalty trust information anda supplemental information tool will be available shortly.Visit bny.mn/taxresourcesTax GuideThe Tax Guide has important information for you and yourclients. It explains how to read various tax statementsand provides pertinent tax reporting instructions andrequirements to help clients prepare their tax returns.The Tax Guide will be available onbny.mn/taxresources shortly.4

Investor Information (continued)ResourceDetailsFind ItPending 1099NoticeThis notif ication is used when we have not received allinf ormation from issuers or we have not completedprocessing/review of all information to complete 2021 1099reporting for a client’s account prior to the cutoff f or theFebruary 15 mailing. Once the remaining information has beenreceived and processed, we will mail the client’s form.The Pending 1099 notice is here.StatementMessagesA statement message will be included in investors’ Novemberand December statements (f or accounts eligible to receive aconsolidated 1099) informing them of the 1099 tax statementmail dates. A separate message will be included in January (f oraccounts eligible to receive a consolidated 1099).Sample November and DecembertextSample January textStatement MessagesA statement message will be included in investors’ November and December statements informing them of the 1099tax statement mail dates.Please note the following information for Pershing's 2021 IRS Form 1099 (B, DIV, INT, MISC and OID):Your Form 1099 will be delivered as early as possible, beginning on January 31, 2022. By February 15,you will be mailed either your Form 1099 or a special Pending 1099 Notice. The Pending 1099 Notice willbe sent if we have not received and processed final information from issuers and trustees of securities thatyou hold by the as of date of the February 15 1099 mailing. You will also be sent the notice if yourinf ormation is still being reviewed and finalized. The notice will inform you of the securities that are pendingf inal reporting and provides the anticipated mail date of your 1099. Your 1099 will be mailed no later thanMarch 15, 2022.The f ollowing message will be included in the January statement:Important Reminder for Pershing’s 2021 IRS Form 1099 (B, DIV, INT, MISC and OID): As a reminder, byFebruary 15, 2022, you will be mailed either your Form 1099 or a special Pending 1099 Notice. ThePending 1099 Notice will be sent if we have not received and processed final information from issuers andtrustees of securities you hold by the as of date of the February 15 1099 mailing. You will also be sent thenotice if your inf ormation is still being reviewed and finalized. The notice will inform you of the securitiesthat are pending f inal reporting and provides the anticipated mail date of your 1099. Your 1099 will bemailed no later than March 15, 2022.Electronic DeliveryeDelivery provides the fastest and most secure access to clients’ eligible tax documents (1099, 1099-R, 1099-Q, 5498,5498-ESA, 1042-S and 480.6). You should consider using one of the statement messages below to reinforce thebenef its of e-delivery during tax season and all year around. (Note: Client statement message requests must bereceived by the 15th of the month.)5