Vanguard marketing corporatiton?

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AQ
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Vanguard marketing corporatiton?

Post by AQ »

I converted from the legacy platform to Vanguard brokerage last year, so this is the first time I received 1099 from the brokerage side.

It's interesting to note that they list 'Vanguard Marketing Corporation' as 'Payer' in my tax documents. I vaguely recall reading this forum and some mentioned the brokerage arm is named as VMC. The funny part is 'Marketing' for a brokerage business or subsidiary. Now I'm almost concerned whether this is the right name to feed into my software (I'm using TurboTax and manually enter data myself instead of importing). Or this is the name or in any case IRS won't care as long as all the numbers are correctly filled in?
Geologist
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Re: Vanguard marketing corporatiton?

Post by Geologist »

Vanguard Marketing Corporation is the correct name to use for entering the 1099.
jebmke
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Re: Vanguard marketing corporatiton?

Post by jebmke »

I typically use

“jebmke brokerage account”
“joint brokerage account”
and
“Spousename brokerage account”

Been filing this way for decades.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
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Svensk Anga
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Re: Vanguard marketing corporatiton?

Post by Svensk Anga »

The payer ID number is what the IRS will use to check your return versus the 1099.
stan1
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Re: Vanguard marketing corporatiton?

Post by stan1 »

AQ wrote: Sun Feb 02, 2025 3:52 pm I converted from the legacy platform to Vanguard brokerage last year, so this is the first time I received 1099 from the brokerage side.

It's interesting to note that they list 'Vanguard Marketing Corporation' as 'Payer' in my tax documents. I vaguely recall reading this forum and some mentioned the brokerage arm is named as VMC. The funny part is 'Marketing' for a brokerage business or subsidiary. Now I'm almost concerned whether this is the right name to feed into my software (I'm using TurboTax and manually enter data myself instead of importing). Or this is the name or in any case IRS won't care as long as all the numbers are correctly filled in?
I agree its a confusing term, and it makes me wonder why they chose it. My guess is the brokerage and related operations "market" Vanguard mutual funds, on their behalf. That's how the fund managers would have seen things decades ago. Maybe the power that be never really expected this term to be visible to clients, but at the same time they never bothered to change it decades ago so its still there.

Edited to add: it is what it is, no need to worry about it and much bigger problems to solve (or worry about) :-)
Last edited by stan1 on Sun Feb 02, 2025 4:26 pm, edited 1 time in total.
Geologist
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Re: Vanguard marketing corporatiton?

Post by Geologist »

Look there are all sorts of possibly confusing corporate names out there. Fidelity's broker dealer (a wholly owned subsidiary) is National Financial Services, which doesn't even have Fidelity in the name. People should just not worry about it.
GoldStar
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Re: Vanguard marketing corporatiton?

Post by GoldStar »

I use whatever names turbotax auto imports - as I recall there is line 2 after Vangaurd Marketing, maybe Vanguard Brokerage or something is line 2
Last edited by GoldStar on Sun Feb 02, 2025 4:37 pm, edited 1 time in total.
jebmke
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Re: Vanguard marketing corporatiton?

Post by jebmke »

Svensk Anga wrote: Sun Feb 02, 2025 4:15 pm The payer ID number is what the IRS will use to check your return versus the 1099.
I have done well over 1,000 returns and never enter this for 1099-div or 1099-int.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
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sycamore
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Re: Vanguard marketing corporatiton?

Post by sycamore »

AQ wrote: Sun Feb 02, 2025 3:52 pm It's interesting to note that they list 'Vanguard Marketing Corporation' as 'Payer' in my tax documents. I vaguely recall reading this forum and some mentioned the brokerage arm is named as VMC. The funny part is 'Marketing' for a brokerage business or subsidiary.
From the bottom of https://investor.vanguard.com/
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
jebmke
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Re: Vanguard marketing corporatiton?

Post by jebmke »

sycamore wrote: Sun Feb 02, 2025 4:47 pm
AQ wrote: Sun Feb 02, 2025 3:52 pm It's interesting to note that they list 'Vanguard Marketing Corporation' as 'Payer' in my tax documents. I vaguely recall reading this forum and some mentioned the brokerage arm is named as VMC. The funny part is 'Marketing' for a brokerage business or subsidiary.
From the bottom of https://investor.vanguard.com/
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Presumably then, payments of dividends and interest on individual securities held in the account are remitted to VMC and the payee in their system is “VMC”? A fund or ETF would be the payee for securities held by the fund. And then the fund would remit to VMC?
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
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sycamore
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Re: Vanguard marketing corporatiton?

Post by sycamore »

jebmke wrote: Sun Feb 02, 2025 4:53 pm
sycamore wrote: Sun Feb 02, 2025 4:47 pm

From the bottom of https://investor.vanguard.com/

Presumably then, payments of dividends and interest on individual securities held in the account are remitted to VMC and the payee in their system is “VMC”? A fund or ETF would be the payee for securities held by the fund. And then the fund would remit to VMC?
Yeah, that's my rough understanding of how it works. It's not clear to me whether or when it's VBS versus VMC that's doing something on behalf of a customer. Not that it matters to 99.9% of us :)
Geologist
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Re: Vanguard marketing corporatiton?

Post by Geologist »

jebmke wrote: Sun Feb 02, 2025 4:53 pm
sycamore wrote: Sun Feb 02, 2025 4:47 pm

From the bottom of https://investor.vanguard.com/

Presumably then, payments of dividends and interest on individual securities held in the account are remitted to VMC and the payee in their system is “VMC”? A fund or ETF would be the payee for securities held by the fund. And then the fund would remit to VMC?
Certainly individual stocks and probably ETF's as well are in street name, so the transfer agent for the stocks and the ETF won't even know who the individual holders are at each brokerage, just the total shares held by the brokerage. The brokerage gets a lump sum and then uses its records to distribute to individual holders.

Edit: as an example, the April 2024 SAI for Vanguard Index Funds reports that Vanguard Marketing Corporation (as a DTC participant) owns 29.23% of the shares of Vanguard Total Stock Market ETF. The SAI specifically points out that the funds do not have information concerning the beneficial ownership of shares held in the names of DTC participants.
Barky
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Re: Vanguard marketing corporatiton?

Post by Barky »

jebmke wrote: Sun Feb 02, 2025 4:27 pm
Svensk Anga wrote: Sun Feb 02, 2025 4:15 pm The payer ID number is what the IRS will use to check your return versus the 1099.
I have done well over 1,000 returns and never enter this for 1099-div or 1099-int.
Exactly, as long as the numbers generally line up all the rest is extraneous.
50-year-old California bankruptcy attorney
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