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Financial Data Exchange Updates Tax Info API

The Financial Data Exchange has released Version 4.2 of the FDX API, now encompassing 51 different IRS forms and statements.The FDX API was designed to pave the way for transition from current disparate tax formats, Open Financial Exchange (OFX) and Tax Exchange Format (TXF), as well as other often used proprietary formats like PDF and CSV. Other updates contained in FDX API 4.2 include the separation of the banking and tax specification for easier readability and the addition of annuity accounts to the API.

Nov 10th 2020
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The announcement of FDX API 4.2 puts in place a single standard data structure for exporting and importing almost all tax accounting data in the U.S. that does not require the sharing of login credentials.

FDX API 4.2 will enable a secure data sharing standard for interactions between tax software applications and companies that operate tax form data servers, such as payroll companies, banks and brokerage firms. Further, all FDX data structures are readily generated and consumed using the ubiquitous JSON data serialization technology.

In addition to the FDX API standard’s existing support for an array of tax forms and statements, the new version of the FDX API now fully supports all types of business, royalty, farm and rental income tax information.

FDX 4.2 will also provide U.S. tax reporting data in a readable text format so that it can be used for file importing and exporting with tax return preparation software. This same format allows QR codes to be added to annual tax documents so that smart phone apps using open QR code technology can be used by all tax filers.

FDX recommends that the tax software industry begin replacing support for the older TXF data files with data files using the FDX API 4.2. To facilitate implementation of the new FDX API 4.2 standard for tax information, developers and implementers can visit this technical page for further information about the standard and assistance with migration from TXF and OFX to FDX data structure.

Tax Data Exchange is an independent production of members of FDX’s API & Data Structures working group who specialize in tax data exchange.

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