Important information for our customers and 1031 community regarding safety and IRS deadlines
During this period of volatility in the financial markets we have been receiving inquiries regarding the safety of the funds that we holding on behalf of our Exchange customers.
1031 Fund Security
A major role of a Qualified Intermediary is to safeguard taxpayer funds during a 1031 Exchange. Since Qualified Intermediaries are not regulated by the federal government or by most states, financial assurances, expertise, company strength and reputation are critical factors. As the nation’s largest and most secure 1031 Qualified Intermediary, you can count on IPX1031®. Our security features include:
- $100 million Fidelity Bond
- $50 million third party corporate performance guarantee
- $30 million in Errors & Omissions insurance
- Exchange funds are held in segregated bank accounts for the benefit of the named Exchanger, using the Exchanger’s taxpayer identification number
- Disbursement of exchange funds requires written authorization from the Exchanger
- Disbursements require dual authorization and are controlled by our separate Banking Division; sales and administrative staff have no authority or ability to transfer funds
- Regular reconciliation of exchange fund balances by our Banking staff and our parent company
- As part of a large publicly-traded corporation, we are subject to audits, controls and a level of financial transparency about the entire organization that is not required of privately held businesses
- To increase security as well as provide increased convenience to our exchange customers, we have chosen the use of an electronic platform (utilizing two factor authentication) as the preferred delivery method for exchange documents
Disaster Extensions & Coronavirus
At the time this was written, no extensions of the 1031 Exchange time deadlines had been issued by the IRS due to the Coronavirus. Taxpayers currently in a 1031 Exchange should plan to proceed as usual and follow the normal time deadlines.
IPX1031 will share information as it becomes available. Taxpayers currently involved in a 1031 Exchange and their tax/legal advisors should carefully review any IRS notices regarding potential extensions of time deadlines.
Read more about disaster relief here: IPX1031 Disaster Relief Deadline Extensions information and IRS Disaster Relief Notices
IPX1031: Prepared & Ready to Help
As the Coronavirus related issues continue to evolve, we remain committed to supporting you and keeping you informed. We are available and ready to listen to your unique needs and provide 1031 assistance on the phone and online.
Since our operations have been “paperless” for many years, our employees are able to work remotely. As a result, we do not anticipate any adverse impact to normal customer service operations or the security we provide.
We are committed to being responsive and flexible to your needs during this time. We are here to help, and we encourage you to contact us if we can be of assistance.
We will keep you informed as this situation continues to evolve. In the meantime, stay well and thank you for being an IPX1031 customer.
IPX1031 – Choose the Experts
IPX1031 focuses solely on 1031 Tax Deferred Like Kind Exchanges. As the national leader in 1031 Exchange services, IPX1031 has the financial assurances, security and expertise essentials to protect your funds and provide answers and guidance throughout the exchange process. For more information or to discuss your specific 1031 tax deferred exchange situation, please contact us.
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