Morgan Stanley said it took a $70 million charge tied to tax-reporting errors by its brokerage business from 2011 to 2016.
A provision to cover that charge increased 2016 non-compensation expenses by a similar amount, the New York-based firm said Monday in an annual regulatory filing.
Morgan Stanley is in “advanced discussions” with the IRS to resolve any client tax underpayments, according to the filing.
The company said it will notify any customers that may have overpaid taxes and reimburse them. [The issues are related to errors in cost-basis figures.]