DTCC has launched a new service, the 1042-S Classification Announcement. The new offering will enable issuers to directly provide DTCC’s subsidiary, DTC, with IRS Form 1042-S tax withholding information on distributions prior to the payable date, lowering the amount of tax withheld on distributions for non-U.S. investors. DTCC collaborated with BlackRock and Citi’s securities services business on the launch of this service to establish a formal process for providing interest-related dividends on bond ETFs at the time of distribution. Citi is leveraging the new service to reduce the amount of taxes withheld on payments to its clients. The service was launched with 12 payments on BlackRock iShares ETFs, disseminating the number of interest-related dividends on those distributions. The service is available to all DTC clients.