For tax purposes, does a grantor trust use a different taxpayer identification number or the grantor’s social security number? It depends. This blog explains.
Stephen C. Hartnett, J.D., LL.M.
Associate Director of Education
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
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www.aaepa.com
Director of Education, American Academy of Estate Planning Attorneys
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Thank you for a very clear presentation.
Assuming a situation where there is a grantor trust, the grantor is not the sole trustee, and, for some reason, the trust has obtained a separate tax ID, income, etc., should still be reported by the grantor. But how does one deal with the fact that the bank, or some payor of reportable income, will file Forms 1099 using the trust’s, not the grantor’s, tax ID? The Service, I believe, will be trying to match-up the amounts reported on Forms 1099 with the tax return. Any thoughts?
Charles Bruce and Stephane Lagonico
Thanks for your question and kind words Charles and Stephanie. The payor should have asked the trustee to complete a Form W-9. The trustee would complete that, in accordance with Treas. Reg. section 1.671-4, with the grantor social security number and the name and address of the trust. If the payor has not done so, I would tell them that they are reporting the information incorrectly and ask to complete the Form W-9 for the trust.