FDX API 4.2 will allow the tax software industry to simplify and streamline the income tax return preparation process for taxpayers and accountants.
FREMONT, CA: The Financial Data Exchange releases Version 4.2 of the FDX API, which now includes the most comprehensive tax information fields of any API in the United States. In addition to offering the financial industry a common, interoperable, and royalty-free standard for all user-permissioned financial data sharing, the FDX API now encompasses 51 different IRS forms and statements. The FDX API paves the way for the transition from current disparate tax formats, Open Financial Exchange (OFX) and Tax Exchange Format (TXF), and other often used proprietary formats like PDF and CSV. These changes to the FDX API make tax preparation and reporting more efficient and secure than ever before.
FDX API 4.2 represents another high-water mark for our organization and continues to deliver on FDXs promise to give the financial industry a secure, best-in-class open standard for all different types of user-permissioned data sharing.
The announcement of FDX API 4.2 puts 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. The FDX Tax Task Forces work on the FDX API 4.2 specification will provide a huge upgrade in tax information reporting data security. In addition to the FDX API standards 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 human-readable text format for the first time to 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 smartphone apps using open QR code technology can be used by all tax filers.
